By-Press Secretary
The Dominica Parliament on Monday authorized a credit facility from the International Development Association (IDA) totaling EC$69.9 million to support the national budget and strengthen fiscal and climate resilience.
In presenting the motion, Minister for Finance, Economic Development, Climate Resilience and Social Security, Hon. Dr. Irving McIntyre, said the funding will enable the Government to better respond to ongoing macroeconomic shocks while advancing its transformative development agenda.
Portions of the IDA loan will go toward recurrent budget support covering road maintenance, equipment procurement, and marketing efforts by the Discover Dominica Authority.
“Aspects of the public sector programme will also be financed from this loan, including land settlement about some of the ongoing projects and the relocation of residents of Campbell, Petite Soufriere, San Sauveur, and Good Hope to safer locations,” Hon. McIntyre stated.
Dr. McIntyre underscored the growing demand for government services in recent years amid challenging global fiscal conditions and an increase in expenditure due to the expansion of essential services.
He cited the construction of two new hospitals, 14 new health centres, expanded support for early childhood education, and tuition-free access to the Dominica State College, as well as greater investment in national security and sports development.
“Government has been constantly exploring ways to reduce recurrent expenditure, including reducing allocations for the purchase of goods and services, reducing travel budgets, consolidating the purchase of some supplies, keeping the wage bill within the set limits, and ongoing efforts to digitize operations to increase efficiencies,” he explained.
“At the same time Mr. Speaker, the demand for Government’s services and support has increased while, Government, the largest consumer in the country, has not been spared by imported inflation over the past five years,” he added, noting that the Government has made a deliberate effort to avoid increasing the tax burden on the Dominican people.
The terms of the loans include an interest rate of ¾ of 1% per annum and a grace period of ten (10) years with 60 semiannual installments commencing March 15, 2035.