Contingency Fund generates millions

Contingency Fund generates millions

The contingency fund, set up by government in 2017 in order to provide a source of revenue to respond to issues relating to climate change as of December 2018 has realized EC$12.6 million.
And the fund is expected to receive an additional EC$12.5 million in 2019.
“While this number remains small in the face of the multi-billion potential of a major natural disaster, it is nonetheless significant,” Minister of Finance Camillo Gonsalves, in delivering the 2019 Budget presentation yesterday (Monday).

“If we are blessed with continued good fortune, in the near term, the Contingency Fund will be a reliable, home grown cushion against natural disasters,” he continued.

According to Gonsalves, the Fund also stands as an important signal to the international community that St Vincent and the Grenadines is committed to playing a role in disaster preparation and recovery.

The Fund was established in 2017 with an additional 1 percent levy on the Value Added Tax and within the first eight months following its implementation, it generated EC$6.75 million.

One year later, it was announced in the 2018 Budget presentation that an EC$8.00 Climate Resilience Levy was being introduced on all stay-over visitors in hotels, apartments and short-term rentals and in the months following its implementation generated EC$1.7 million.