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    Budget Alert 5.7: Budget Time Again: What is the National Budget

    By Mina BookerPosted on

    By Laurel Bain


    The cycle has begun for the preparation of the 2026 national budget, which will be Grenada’s financial plan for 2026 with estimates for developments in 2027 and 2028. This financial plan comprises three components, namely the current or recurrent account, the capital account and the financing section.

    The national budget is based on an estimation of the available financial resources comprising domestic or current revenue, capital revenue, grants and loans; and shows the allocation of the financial resources between current and capital expenditure. For ease of economic analysis, the revenues and expenditure are classified according to functions. As such, tax revenue is subdivided into taxes on income and profits, taxes on property, taxes on domestic transactions and taxes on international trade; and the current expenditure classified into compensation to employees (wages), goods and services, transfers and subsidies, and interest payment, and the capital or investment expenditure subdivided into administration, economic services and social services.

    The operations of the Government could result in a surplus due to the collection of more revenue than expenditure or a deficit as a result of more expenditure than revenue. The financing component of the national budget shows how the Government would dispose of a surplus or how the Government would finance a deficit. This section includes all financial transactions of the Government with financial institutions and agencies to deposit funds or for transactions related to disbursements and repayments on public debt.

    The content of the national budget is summarised in the Budget Statement. The details of the national budget are presented in the Estimates of Revenue and Expenditure, which is submitted with the Appropriation Bill for approval by Parliament of expenditure for the financial year.

    Therefore, the core of the budget encompasses the Budget Statement, the Estimates of Revenue and Expenditure and the Appropriation Bill.

    The provisions for financial management are outlined in the Constitution and the Public Finance Management Act, as amended. The Constitution, subsection 77, makes provision for the establishment of the Consolidated Fund. It specifies that all revenues must be deposited in the Consolidated Fund and all expenditure must be made from the Consolidated Fund.

    Provisions have also been made for the establishment of special funds under the Consolidated Fund. All expenditure by the Government must be approved by Parliament. In cases where the Government has to incur expenditure that is not in the approved budget, the Constitution makes provision for a supplementary budget to be approved by Parliament.

    The Public Finance Management Act stipulates that no more than two (2) supplementary budgets must be approved in one fiscal year.

    The Constitution also makes provision for a Contingencies Fund from which expenditure could be made to cater for urgent and unforeseen expenses, following which a supplementary budget must be approved by Parliament. On approval of the supplementary budget, a supplementary Appropriation bill should be enacted for replenishing the Contingencies Fund.

    The Public Finance Management Act stipulates that 2 percent of revenue must be reserved for contingencies. In relation to the oversight and monitoring of the implementation of the national budget, the Public Finance Management Act makes provision for the preparation of a Mid-Year Fiscal Policy Review, within two months of the end of the period, for the consideration of Cabinet, and to be laid in Parliament together with the next supplementary budget. Regular reporting on the public finances and the public debt is provided for in the Public Finance Management Act and the Debt Management Act.

    The legislation make provisions for financial accountability. In this regard, an important constitutional requirement of the budget process is the auditing of the public accounts. The Constitution, in Section 82 stipulates:

    (2) It shall be the duty of the Director of Audit to audit and report on the public accounts of Grenada, the accounts of all officers and authorities of the Government of Grenada, the accounts of all courts in Grenada (including any accounts of the Court of Appeal or the High Court maintained in Grenada), the accounts of every Commission established by this Constitution and the accounts of the Clerk to the Senate and the Clerk to the House of Representatives.

    The constitutional provisions for preparing the national budget and for financial management are detailed and made operational by the Public Finance Management Act as amended, the Debt Management Act as amended and the Audit Act.

    It is the responsibility of citizens to understand the budget and monitor its preparation and implementation and review the reports on its evaluation in the context of the legislation for financial management.

    Knowledge is power and Experience is the greatest teacher.

    Disclaimer: This article is written in my personal capacity and not in my capacity as Chairwoman of the Fiscal Resilience Oversight Committee.

    29th August 2025

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    Budget Alert 5.6: Implications of a Deficit Budget by Laurel Bain

    By Mina BookerPosted on

    A surplus budget is generally anticipated. However, fiscal policy dictates that, at some times, the budgets will be in deficit over a cycle. In the 2025 national budget, presented to Parliament on 7 th March 2025, an overall deficit of $337.4M is estimated for 2025. This deficit was influenced by a projected decline in revenue which was combined with higher expenditure when compared with 2024. The factors contributing to the growth in expenditure and the falloff in revenues are not the main subject of analysis in this article, Instead, the article focuses on the implications of the overall fiscal deficit.


    This fiscal deficit implies that the Government plans to spend more than it projects to collect in tax and non-tax revenue, and any grants that it may receive during 2025.

    Budget Alert 5.6 Implications of a Deficit Budget

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    A Tribute in Memory of the late Sir K Dwight Venner and the late Ms. Alison Phills who shared the same birthday of 21 January

    By adminPosted on

    Article  by Laurel Bain.

    The late Sir K Dwight Venner, who served as Governor of the Eastern Caribbean Central Bank [ECCB] from 1989 to 2015, contributed significantly to the development of the ECCB and the Eastern Caribbean Currency Union [ECCU].

    Sir K Dwight Venner was a visionary leader, and a strong advocate for the OECS Economic Union, while, at the same time, protecting and defending the strong and stable Eastern Caribbean [EC] dollar. Sir K Dwight Venner constantly withstood the pressures to devalue the EC dollar.

    During a consultative engagement, when asked by a representative of an international institution whether the appreciation of the EC dollar wakes him up at nights, Governor Venner’s response was: ‘I do not sleep at nights’. This closed all further discussions on the devaluation of the EC dollar.

    Governor Venner was a regionalist. On becoming Governor of the ECCB, the regional nature of the Bank was upgraded. After the construction of the Headquarter building in 1994, the flag of all the member countries of the ECCB were prominently featured on the compound. Regional institutions, such as the Eastern Caribbean Stock Exchange [ECSE] and the Eastern Caribbean Home Mortgage Bank [ECHMB], were facilitated along with the development of the Regional Government Securities Market [RGSM].

    The institutions were housed at the ECCB Headquarters, and their staff participated in the economic and social activities of the ECCB in keeping with the spirit of deepening regional integration. In promoting the regional integration vision, the ECCB accommodated a flag raising ceremony on the date of independence of each country with the singing of the National Anthem, and the display of culture and products of the island. The economic and cultural display of the islands were reinforced by the institutionalization of Island Night.

    The performance of the Grenadian contingent at the Bank was of added interest to Sir K Dwight Venner. Governor Venner was a proud student of the Grenada Boys Secondary School [GBSS], so the display of Grenadian talents and culture had to be upscaled. On one of the Island Night, the Grenadian contingent displayed the economic, political and social life in Grenada in a medley of songs and dances, with the songs featuring memorable lyrics of: ‘ When you see me in the cold mountain, what a planting…; Island in the sun with beautiful beaches and lovely people…; We shall never let our leader fall…; Forward march against imperialism…; and Dry weather house doh worth a cent….’With Arthur Campbell, a currently well-known entrepreneur, as the guitarist, the performance climaxed with the singing of the song with the lyrics: I must go back, my little island is calling me, by the now Honourable Lenox Andrews.

    This was followed by the sharing of oil down from a big iron pot which was brought up from Grenada specifically for the cooking of the oil down. The now Honourable Dennis Cornwall efficiently managed the cooking of the oil down, a dish which became famous at the ECCB. On another occasion, the Grenadian contingent imported the talent in the form of the late Mighty Defender who sang about the stability of the EC dollar. With the experiences of regionalism, it is hoped that the Ministers of Government who were part of the process would continue to push for the strengthening of the OECS Economic Union.

    Sir K Dwight Venner was an ardent researcher and with the support of the late Ms. Alison Phills, the ECCB librarian, a first-class library was developed at the ECCB. Ms. Phills, with the support of the library staff, meticulously sourced, recorded and organized the documents in the library; managed the collection of scholarly journals; sourced the newspapers from each member country of the ECCB; managed the exchange of documents with the staff of the Bank; archived the historical records; and embraced the move to the electronic platforms. Based on her interactions, Ms. Phills was concerned about the information gap that existed on the ECCB. This motivated her to publish the first book on the history of the ECCB entitled ‘The Eastern Caribbean Central Bank: Some Key Historical Facts’, which was launched on 21st February 2019.

    The gathering of information and the sharing of knowledge were common to Sir K Dwight Venner and Ms. Alison Phills. On request, Ms. Phills organized Governor Venner’s quiet research time in the library. Thereafter, Governor Venner and Ms. Phills would converse as they shared some commonalities namely, the interest in information, the same birthday of 21 January, and the same nationality of St Vincent and the Grenadines.

    May the legacy of Sir K Dwight Venner and Ms. Alison Phills live on.

    By Ms. Laurel Bain who served at the ECCB for over twenty-five years along with the late Sir K Dwight Venner and the late Ms. Alison Phills. January 2023.

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    Budget Alert Episode 18- Recommendations for Improving the Budget Process= With Laurel Bain

    By adminPosted on

    This episode highlights some recommendations for improving the budget process. 

     

    [audio mp3="https://www.innovativealliances.com/wp-content/uploads/2022/12/National-Budget-PSA-18-E-mp3.mp3"][/audio]

    About this Programme


    Public Literacy Education and Awareness [PLEA]


    This public education and awareness programme on the ‘Budget and the Budget Process in Grenada’ was aired on Vibes 101.3 FM radio station [ vibes101.3@gmail.com or kimsplaza@gmail.com] in Carriacou, as Kim the King graciously agreed to air the programme as a public service-free of cost.


    The programme is the technical product of Ms. Laurel Bain and Dr. Juliet Melville, who worked with PR and Co [prandco473@gmail.com], to provide the education programme as a public service. Dr. Roxanne Brizan-St Martin, who anchors the programme, informs that the information was extracted from the workshop that was facilitated by Ms. Bain and Dr. Melville, and which was organized by the Non-State Actors Advisory Panel in Grenada, with support from the 11th European Development Fund [EDF] Technical Co-operation Facility and Support to Non-State Actors.


    Ms. Laurel Bain is a former employee of the Eastern Caribbean Central Bank [ECCB] where she served for over twenty-five (25) years in various positions, including that of Deputy Director in the Research Department, Senior Director of the Statistics Department and Senior Director in the Governor’s Office. During this period, Ms. Bain undertook economic assessments of countries and considerable research on fiscal policy and tax structures. Ms. Bain worked extensively with

    the countries of the Eastern Caribbean Currency Union and with international development agencies and regional institutions. She has written, and continues to write, on economic and fiscal policy issues which are now published in ‘Budget Alert’. Email: Laurelbain@hotmail.com




    Dr. Juliet Melville is an Independent Consultant and Director of Venture Research (B’dos) Inc. She has over twenty (20) years’ experience in international development work with fifteen (15) of these at the Caribbean Development Bank where she served in various capacities including Acting Director of Economics, Chief Economist and Chief Research Economist. Dr. Melville possesses strong skills in economic analysis, economic planning and policy formulation and was routinely involved in the monitoring and analysis of socio-economic developments in Caribbean countries and the wider international community. Dr. Melville is an avid researcher and publishes regularly,

    particularly on economic and public debt issues. Email: julietmelville5@gmail.com


    Dr. Roxanne Brizan-St. Martin is an Economist with over seventeen (17) years of experience in research, project management, health accounting and capacity building in over eleven (11) Caribbean countries, in the area of health and socio-economic development. Dr. Brizan-St. Martin specializes in health systems management, health financing and healthcare access options and challenges in the Caribbean. She is also trained in Local Capacity Advocacy and Policy Monitoring for Civil Society Organizations (CSOs), Gender Statistics and Gender Equality, Results Based Project Management, COVID-19 Contact Tracing and Spatial Econometrics. Email: roxannebrizan@hotmail.com

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    Budget Alert Episode 17- How Citizens can Participate in the Budget Process- Dr.Juliet Melville

    By adminPosted on

    This episode explains how citizens could participate in the budget process.

    [audio mp3="https://www.innovativealliances.com/wp-content/uploads/2022/12/National-Budget-PSA-17-E-mp3.mp3"][/audio]


    About this Programme

     

    Public Literacy Education and Awareness [PLEA]

     

    This public education and awareness programme on the ‘Budget and the Budget Process in Grenada’ was aired on Vibes 101.3 FM radio station [ vibes101.3@gmail.com or kimsplaza@gmail.com] in Carriacou, as Kim the King graciously agreed to air the programme as a public service-free of cost.

     

    The programme is the technical product of Ms. Laurel Bain and Dr. Juliet Melville, who worked with PR and Co [prandco473@gmail.com], to provide the education programme as a public service. Dr. Roxanne Brizan-St Martin, who anchors the programme, informs that the information was extracted from the workshop that was facilitated by Ms. Bain and Dr. Melville, and which was organized by the Non-State Actors Advisory Panel in Grenada, with support from the 11th European Development Fund [EDF] Technical Co-operation Facility and Support to Non-State Actors.

     

    Ms. Laurel Bain is a former employee of the Eastern Caribbean Central Bank [ECCB] where she served for over twenty-five (25) years in various positions, including that of Deputy Director in the Research Department, Senior Director of the Statistics Department and Senior Director in the Governor’s Office. During this period, Ms. Bain undertook economic assessments of countries and considerable research on fiscal policy and tax structures. Ms. Bain worked extensively with

    the countries of the Eastern Caribbean Currency Union and with international development agencies and regional institutions. She has written, and continues to write, on economic and fiscal policy issues which are now published in ‘Budget Alert’. Email: Laurelbain@hotmail.com

     

     

     

    Dr. Juliet Melville is an Independent Consultant and Director of Venture Research (B’dos) Inc. She has over twenty (20) years’ experience in international development work with fifteen (15) of these at the Caribbean Development Bank where she served in various capacities including Acting Director of Economics, Chief Economist and Chief Research Economist. Dr. Melville possesses strong skills in economic analysis, economic planning and policy formulation and was routinely involved in the monitoring and analysis of socio-economic developments in Caribbean countries and the wider international community. Dr. Melville is an avid researcher and publishes regularly, particularly on economic and public debt issues. Email: julietmelville5@gmail.com

     

    Dr. Roxanne Brizan-St. Martin is an Economist with over seventeen (17) years of experience in research, project management, health accounting and capacity building in over eleven (11) Caribbean countries, in the area of health and socio-economic development. Dr. Brizan-St. Martin specializes in health systems management, health financing and healthcare access options and challenges in the Caribbean. She is also trained in Local Capacity Advocacy and Policy Monitoring for Civil Society Organizations (CSOs), Gender Statistics and Gender Equality, Results Based Project Management, COVID-19 Contact Tracing and Spatial Econometrics. Email: roxannebrizan@hotmail.com

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    Budget Alert Episode 16- How Citizens can Participate in the Budget Process- Dr. Juliet Melville

    By adminPosted on

    This episode explains how citizens could participate in the budget process.

    [audio mp3="https://www.innovativealliances.com/wp-content/uploads/2022/12/National-Budget-PSA-16-E-mp3-1.mp3"][/audio]


    About this Programme

     

    Public Literacy Education and Awareness [PLEA]

     

    This public education and awareness programme on the ‘Budget and the Budget Process in Grenada’ was aired on Vibes 101.3 FM radio station [ vibes101.3@gmail.com or kimsplaza@gmail.com] in Carriacou, as Kim the King graciously agreed to air the programme as a public service-free of cost.

     

    The programme is the technical product of Ms. Laurel Bain and Dr. Juliet Melville, who worked with PR and Co [prandco473@gmail.com], to provide the education programme as a public service. Dr. Roxanne Brizan-St Martin, who anchors the programme, informs that the information was extracted from the workshop that was facilitated by Ms. Bain and Dr. Melville, and which was organized by the Non-State Actors Advisory Panel in Grenada, with support from the 11th European Development Fund [EDF] Technical Co-operation Facility and Support to Non-State Actors.

     

    Ms. Laurel Bain is a former employee of the Eastern Caribbean Central Bank [ECCB] where she served for over twenty-five (25) years in various positions, including that of Deputy Director in the Research Department, Senior Director of the Statistics Department and Senior Director in the Governor’s Office. During this period, Ms. Bain undertook economic assessments of countries and considerable research on fiscal policy and tax structures. Ms. Bain worked extensively with

    the countries of the Eastern Caribbean Currency Union and with international development agencies and regional institutions. She has written, and continues to write, on economic and fiscal policy issues which are now published in ‘Budget Alert’. Email: Laurelbain@hotmail.com

     

     

     

    Dr. Juliet Melville is an Independent Consultant and Director of Venture Research (B’dos) Inc. She has over twenty (20) years’ experience in international development work with fifteen (15) of these at the Caribbean Development Bank where she served in various capacities including Acting Director of Economics, Chief Economist and Chief Research Economist. Dr. Melville possesses strong skills in economic analysis, economic planning and policy formulation and was routinely involved in the monitoring and analysis of socio-economic developments in Caribbean countries and the wider international community. Dr. Melville is an avid researcher and publishes regularly, particularly on economic and public debt issues. Email: julietmelville5@gmail.com

     

    Dr. Roxanne Brizan-St. Martin is an Economist with over seventeen (17) years of experience in research, project management, health accounting and capacity building in over eleven (11) Caribbean countries, in the area of health and socio-economic development. Dr. Brizan-St. Martin specializes in health systems management, health financing and healthcare access options and challenges in the Caribbean. She is also trained in Local Capacity Advocacy and Policy Monitoring for Civil Society Organizations (CSOs), Gender Statistics and Gender Equality, Results Based Project Management, COVID-19 Contact Tracing and Spatial Econometrics. Email: roxannebrizan@hotmail.com

     

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