Given the recommendations of the 2023 Article IV Consultation published by the International Monetary Fund (IMF), Finance Minister Irving McIntyre has revealed that Dominica will surpass its debt-to-GDP ratio by focusing social interventions on the vulnerable.
While the IMF stated that Dominica’s growth outlook is projected to rise beyond 4.5% between 2023 and 2024, the Washington-based organization Dominica must complete its scheduled census to be able to cater to the socio-economic needs of the people.
“As a first step, completing the ongoing population census, which would form the basis for a comprehensive social registry, is paramount,” the IMF stated. “This would enable the streamlining of untargeted programs and deploying exceptional support swiftly and cost-effectively in the face of large shocks.”
McIntyre disclosed that the government has streamlined the intervention process to manage its debt-to-GDP profile by uplifting the standards of living for the masses. He said the nation is also set to experience higher revenue through the growth of tourism to pre-COVID-19 levels and the construction of an international airport as well as the construction of a geothermal power plant.
The finance minister said the government is also paying more attention to educational and housing policies among other progressive programmes. “We are not going to give up on these, we put the people of this country first but obviously it will be streamlined, so there won’t be double dipping,” he said.
Meanwhile, the IMF warned that Dominica must boost other revenue models that are different from its Citizenship by Investment (CBI) programme. The international agency said climate change and global economic uncertainty among other factors make the CBI initiative unreliable for the long term. “Shortfalls in CBI inflows could hamper implementation of infrastructure investment plans, climate resilience, economic activity, and the fiscal position,” the agency stated.
The political leader of the United Workers Party (UWP), Thomson Fontaine, discounted the projections of the DLP administration to reduce its debt-to-GDP ratio. He said the government has not been straightforward over fiscal matters and that despite the purported efforts of the current administration, the average national growth has been less than 1% in the last 10 years.
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