The 2005 National Budget was presented on Monday (April 11, 2005) by Hon. Anthony Boatswain, Minister of Finance, at the Grenada Trade Centre, under the theme “Rebuilding a Better Grenada for All.” According to Minister Boatswain, the theme reflects the imperative of building back better, the dreams and aspirations of the Grenadian people and the necessity for all Grenadians to share in the benefits of a better Grenada. The theme also challenges all citizens to take personal responsibility for the task of rebuilding the Nation. The 2005 Budget focuses on the reconstruction of Grenada in the aftermath of Hurricane Ivan with the main objectives being: To stabilize the public finances of the country by narrowing the deficit on current operations; and To facilitate and promote the reconstruction of Grenada’s economy in the shortest possible time through specific sectoral interventions and incentives. To achieve its’ objectives, Government announced a number of measures to increase revenue as well as assist citizens in rebounding after the devastation of Hurricane Ivan. These measures include: Reduced Property Tax – For 2005, Government has approved a 50% reduction in the tax payable on residential properties and an exemption from the payment of Property Tax on residential buildings where the tax payable is the minimum of $20.00 or less. Reduced GCT on Alternative Energy Products – Government has decided to remove the GCT on an approved list of alternative energy products, including solar and wind energy products as a response to the National Environmental Management Strategy’s call for incentives to promote the use of alternative energy products. Reduction in GCT on Tyres and Brakes – As of June 1, 2005, the GCT on New Tyres, brakes and brake accessories would be reduced from 25% to 5% and these items would be placed on the Price Control List to ensure compliance. This reduction not only seeks to improve road safety by ensuring that new and better quality products are purchased, but also serves to mitigate the effect of the increase in the price of fuel on bus fares since an increase would adversely impact the lives of many, especially school children. Increase in the retail price of fuel – The price of fuel will increased to $8.50 as of May 1, 2005 or as soon as the legislative amendment is completed. It is important to note that Grenada currently has the lowest retail fuel price in the Eastern Caribbean. However, with the current fiscal situation, Government can no longer subsidise the cost of fuel as it had been doing over the last four years. Contributions to the Grenada Reconstruction and Development Fund – As of July 2005, all workers will contribute to the Grenada Reconstruction and Development Fund, for a fixed period of 5 years, as a means of raising local resources to assist in the rebuilding of the country. The rates of contribution are: i.5% of gross income of persons earning up to $5000 EC per month. ii.2.5% of gross income of persons earning in excess of $5000 EC per month. The 2005 Budget also details specific rehabilitation programmes for Agriculture, Housing, Tourism, Business Reactivation, Health Care, Education and Training, Physical Infrastructure, Psychological Rehabilitation, Youth Development and Sport Development as well as institutional strengthening in the areas of Disaster Management, Physical Planning and Public Sector Modernisation. Source: MINISTRY OF FINANCE, INDUSTRY & PLANNING