Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698833640857.pdf (Saint Kitts and Nevis)
Economic and Financial Review, 1st Half of 2017 Nevis Island Administration ECONOMIC AND FINANCIAL REVIEW, 1ST HALF OF 2017 Economic and Financial Review, 1st Half of 2017 Table of Contents Introduction Overview Fiscal Operations Debt Management International Financial Services Nevis Tourism Authority Department of Agriculture Employment Review Appendices Revenue Expenditures Capital Investments 1 1 3 3 4 5 8 Economic and Financial Review, 1st Half of 2017 Introduction T he Nevis Island Administration (NIA) continues to advance the agenda of sustainable economic growth and social development for the Island of Nevis.
The first half of 2017 has elapsed and though we are proud of the accomplishments thus far, we will nevertheless not become complacent but instead press forward to meet our outlined budgetary expectations at every level.

With regards to the global environment, the International Monetary Fund’s (IMF) World Economic Outlook Report April 2017 projects an overall world growth rate of between 3.4 to 3.5 percent, with positive growth rates for the United Kingdom, Europe and Unites States of America (USA) .
Real GDP growth in the USA was reported to be at a rate of 2.6 percent in the second quarter of 2017 (Q1‐ 1.2 percent) (Source: US Department of the Treasury –Press Release: Economy Statement).

The USA is a key actor in the global economy and the closest economy of scale to the region.

If its long run prospects continue to trend upwards, it is hoped that regions such as the Caribbean will be the beneficiaries of this expansion.
The possible associated effects on our own small open economy may be felt in the Tourism Sector, the Financial Sector and many other such areas.

Bearing in mind the uncertainty of the future, with continued sound fiscal management, these future opportunities for growth could have exponential effects throughout our economy.
Overview Jan 01 -Jun 30, 2016 Jan 01 -Jun 30, 2017 40,000,000 80,000,000 50,000,000 30,000,000 70,000,000 10,000,000 60,000,000 20,000,000 Graph 1: Fiscal Results Jan ‐ Jun 2017 Fiscal operations for the first half of 2017, have yielded mixed outcomes in some areas used to measure the efficacy of Fiscal Policy.

The current account balance as at June 30th, 2017 is a negative $4.11M (Appendix 6 Table 5), while budgeted expectations were a positive $2.32M.
A positive $1.18M was attained in the corresponding period in 2016.

Year on year Current Revenues for this period (January to June) are down by 1.45 percent, with current revenue of $66.22M in 2017 and $67.20M in 2016 respectively.

Results in Current Expenditure1 follow an inverse trajectory to Current Revenues albeit with the same unfavorable effects.
Year on year Current Expenditures for this period (January to June) show an increase of 6.54 percent, with actual Expenditure levels of $70.33M in 2017 and $66.02M in 2016 respectively.

These outcomes for Current Revenue and Expenditure are depicted in the Graph 1 above.

- Current Expenditure Loan Disbursement Capital Expenditure Capital Revenue Current Revenue 1 Current Expenditure in this format includes payments for Debt Servicing.
1 Economic and Financial Review, 1st Half of 2017 Graph 2 Quarterly Review of Current Revenue and Current Expenditure for 1st and 2nd Quarters in 2017 (in millions) 40 30 20 10 0 Actual Q1 Actual Q2 Budget Q1 Budget Q2 When the results are viewed from a quarterly stand point we also see a decline in the fiscal position.

Graph 2 shows that both Current Revenue and Current Expenditure2 have not been in line with their quarterly budgets.
There was a sharp decline in Q2 Current Revenues (Actual Budget $32.29M, $37.22M).

Current Revevue Current Expenditure Whereas the current account deteriorated showed fiscal position, position at the end of the first half of the year 2017 as measured by the Primary Balance ($4.69M) and Overall Balance is ($‐3.89M) suggests a slight strengthening when compared to the same period in 2016 where the Primary Balance was $3.88M and Overall Balance was $‐3.80M.
The overall balance has remained relatively unchanged.

However in the first half of 2017 we have seen a significant injection of Capital Grants to the tune of $30.45M compared to $7.50M in the corresponding period of 2016.
Quarterly depiction of the movement of these measurement statistics are shown in Table 1. the overall a Table 1 Current Account Primary Balance Overall Balance Q1 Actuals $ Q1 Budget $ Q2 Actuals $ Q2 Budget $ 1,971,716 5,836,143 (2,083,097) 3,511,491 7,218,599 6,677,108 (2,531,456) 6,600,937 3,368,597 2,720,143 (7,256,768) 2,586,491 Capital revenues, which predominantly consists of Capital Grants and Budgetary Grants were recorded as $17.92M for the first three months of the year 2017, then fell by $5.40M to $12.53M for the months April to June 2017.
For the period under review year on year comparisons of total Capital Revenues showed an uptick.

(See Table 2 in Appendix 2), however we may confer that these measurement statistics are sensitive to the timing of some fiscal activities such as the recording of proceeds from grants.

The data in Table 1 (Represented in Economic Classification) suggests that for the months of April 2017 to June 2017, the fiscal position has significantly worsened when compared to the first three months of the year 2017.
Capital Expenditures for both quarters were comparable in terms of the level of spending ($16.52M in Q1 and $17.70M in Q2).

Both amounts are above what was initially budgeted for each quarter respectively ($14.37M in Q1, $12.18M in Q2) 2 Data from this point on is represented in Economic Classification Format, which excludes principal payments as part of Current Expenditure.
2 Economic and Financial Review, 1st Half of 2017 Fiscal Operations Revenues As previously mentioned Current Revenues ($66.22M Jan –Jun 17) have decreased marginally by 1.45 percent when compared to the corresponding period in 2016 ($67.20M Jan – Jun 2016).

Tax Revenues are down by 2 percent for the first half of 2017 ($49.26M) when compared to 2016 ($50.26M).
Taxes on Domestic Goods and Services ($16.99M 2017, $19.40M 2016) declined by 12.43 percent or $2.41M, Taxes on International Trade ($22.19M 2017, $19.82M 2016) improved by a margin 11.92 percent or $2.36M, Property taxes ($1.96M 2017, $1.19M 2016) increased by 65.19 percent or $0.77M and Taxes on Profit and Income ($8.12M 2017, $9.86M 2016) had a sharp decline of 17.58 percent or $1.73M.
With this figure being above the previous period’s amount in 2016, it is attributed to several factors, such as, improved collection practices of the Inland Revenue Department.

The department embarked upon an intensive Property Tax awareness drive where tax payers were consistently reminded via text messages and radio ads about the payment of their taxes.
The department also set up payment stations at various high traffic areas on the island and extended their operating hours by opening for a limited time on Saturdays in an effort to accommodate tax payers.

Credit facilities were also extended to delinquent tax payers as a means to allow clearance of balances in arrears.

Revenue not related to Taxes continue to hold steady in the first half of 2017 ($16.97) when compared to the same period in 2016 ($16.93M).
Charts 3 and 3B provide a visual depiction of the composition of both Total and Current Revenue.
Chart 3 indicates that Taxes on International Trade at 33 percent and Taxes on Domestic Goods and Services at Taxes on Property, 1,960,844 , 3% Non Tax Revenue, 16,967,307 , 26% Taxes on Income and Profit, 8,122,604 , 12% Taxes on International Trade, 22,187,631 , 33% Taxes on Domestic Goods and Services, 16,985,244 , 26% NEVIS ISLAND ADMINISTRATION COMPOSITION OF CURRENT REVENUE FOR JANUARY TO JUNE 2017 CHART 3 26 percent were the major contributors.
Albeit taxes on Domestic Goods and Services are some what lagging behind expectations almost to the point that Non Tax Revenues are almost contributing a greater weight to overall revenue performace than Taxes on Domestic Goods and Services.

Vat revenues ($18.52M 2017, $17.70M 2016) for the period are up by 5 percent, with the greatest proportion being collected by the Inland Revenue Department.
Customs Import Duties ($5.69M 2017, $4.95M 2016) rose by 15.14 percent over the period, while Customs Service Charge ($4.05M 2017, $4.08M 2016 ) fell by 0.74 percent.

The Customs Department had a cumulative revenue loss of $8.53M as of June 30th 2017.

This loss in revenue is in some part due to concessions given out over the period Jan – Jun 2017 (Q1‐$4.41M and Q2‐$4.13M).
The IMF has suggested that the concessions process be legislated so that both the process and the rationale for the concessions are inline with the National Growth Strategy.

The Non Tax Revenue generated by the Financial Services Department ($6.91M 2017 and $7.07M 2016) also fell by 2.22 percent for the period under review.

Chart 3B shows that Capital Revenue makes up 31 percent of Total Revenues.
Total Revenue is up by 29.42 percent but the portion contributed by Tax Revenue has fallen by 16 percent (51 percent 2017) when compared to the same period in 2016 (67 CHART 3B TOTAL REVENUE JAN ‐ JUN 2017 Capital Revenue, 30,446,40 5 , 31% Tax Revenue, 49,256,32 2 , 51% Non Tax Revenue, 16,967,30 7 , 18% 3 Economic and Financial Review, 1st Half of 2017 percent).

Appendix 5 and Table 1 in Appendix 1 shows the comparison of the year on year movements in revenues.
Expenditures Total fiscal outlay for the period under review has risen in terms of both current and capital expenditures.

Year on year current expenditures for the period Jan – Jun 2017 ($66.34M) are up by 7.20 percent or $4.45M from the anagolous period in 2016 ($61.88M).

Current period results stand at 3.14 percent above expected expenditure ($64.31M).
Expenditures on Supplies and Materials ($15.35M 2017, $12.21M 2016) saw a marked increase of 25.69 percent over the same period in 2016, albeit it occupies only a marginal share of 5.97 percent of total current expenditure.

Other, 15.43% Salaries, 32.25% Utilities, 3.05% Debt Services, 17.87% Grants & Contribution, 2.02% Chart 4 Nevis Island Administration Composition of Current Expenditure January 2017 to June 2017 Salaries, Wages and Debt Servicies continue to take up the largest pieces of the pie.
The Central government was able to draw on budgetary grants totaling $7.5M during the period.

This provided support against revenue constraints and allowed for some fiscal flexibility over the period under review.

Generally, there is an upward trend in regards to the components of the broad categories represented in Chart 4.

Table 2 in Appendix 2 provides specific details about the behaviour of these components.
There has been an upsurge in Capital Expenditure ($34.22 2017, $16.62M 2016) for the current period to the tune of 105.93 percent over the equivalent period in 2016.

Chart 5 summarises the source of funds associated with current period expenditures on capital projects.

The chart suggests that the majority of the projects are supported via the consolidated fund.
This rise in Capital Expenditure for the period under review, though above the level budgeted ($26.54M) by 28.94 percent is consistent with the National Strategic Plan outlined in the 2017 Budget.

Supplies & Materials, 5.97% Retiring Benefits, 6.09% Wages, 17.31% Development Aide , 11,848,414 , 35% CHART 5 SOURCE OF FUNDS FOR CAPITAL PROJECTS JANUARY ‐ JUNE 2017 The budget outlined a number of projects commencing in the fiscal year 2017 geared towards improving the lives of every citizen.
The disparity ($17.60M increase in 2017) between the respective periods of 2017 and 2016 can be attributed to both the intensification and initialization of projects in the current period that were either slow moving or not yet started in 2016 (please see Tables 3 and 4 in Appendix 3 and 4).
Notable projects that fall within such a classification can be found in the Primier’s Ministry where the upgrade of Disaster Management and Police Services saw an overall increase in excess of 100 percent of 2016 levels, expenditures on the Water Taxi Pier under the Minstry of Finance (196.88 percent averall increase for the Ministry) is a project Revenue , 16,230,793 , 47% Loans , 6,143,988 , 18% 4 Economic and Financial Review, 1st Half of 2017 that is expected to come to fruition later in the year.
Expenditures continue to increase in the areas of Major and Secodary Road Works and the Renovation of Government House under the Ministry Communication –Public Works (18.47 percent averall increase for the Ministry).
There has also been increases in expenditures on the Alexandra Hospital Project, the renovation of the Cultural Complex, the construction of the Athletic Stadium and TVET Education Project which fall under the Ministry of Health (195.31 percent increase), Ministry of Tourism (85.14 percent increase) , Ministry of Social Development (442.44 percent increase) and Ministry of Education (123.58 percent increase) respectively.

This has all led to the overall increase in outflows.
Table 2: Capital Expenditure by Ministry Jan‐Jun 2017 Capital Investments Description Expenditure $ Percentage of Total 2.58% 13.81% 879,725 4,724,656 Environment Ministry of Com.

Premier's Ministry Ministry of Finance Ministry of Agriculture Table 2 provides some insight into the areas of capital investment activities.
The bulk of the investments are centered on programs in the Ministry of Communication, Works, Public Utilities, Posts, Physical Planning, Natural Resources, (33.05 percent) and the Ministry of Social Development (33.10 percent).

There has also been marked increases in investments in the areas of the Ministry of Health (10.99 percent) and the Ministry of Finance, Statistics and Economic Planning (13.81 percent).
These investments range from major projects such as the Construction of Water Taxi Pier and the Improvement and Maintenance of Sporting Facilities and minor investments such as the Upgrade of Community Health Centers.

Ministry of Education Ministry of Soc.

Dev.


Ministry of Tourism Ministry of Health 11,329,110 34,223,195 11,310,989 3,762,814 1,667,443 100.00% 275,004 273,454 33.05% 10.99% 33.10% 4.87% 0.80% 0.80% Total Ministry of Finance The area earmarked for a new water taxi pier on Oualie Beach at Jones Estate The construction of a 100 feet by 10 feet Water Taxi Pier at Jones Estate on Oualie Beach infrastructural investments for the 2017 period.
To date $3.8M has been spent to purchase the land upon which the pier will be built.

This transaction was completed in the first quarter.

Further developments are expected to take place in the fourth quarter of 2017.

It is hoped that this investment will lead to gains in the Tourism Sector by providing a better all‐around Tourism product, as well as lead to the further development of the local Water Taxi Industry making it safer and more convenient for locals and visitors alike.
The project is expected to be completed in two years with an overall budget of $6.0M.

is one of the major 5 Economic and Financial Review, 1st Half of 2017 New Treasury Building The reconstruction of the Treasury Building is set to commence shortly with the demolition of the old building completed and the awarding of the contract to a local construction firm.

The project has used about 8.27 percent ($0.29M) of its annual 2017 budget of $3.5M.
The estimated total cost of the three storey structure that will house the Treasury Department, Inland Revenue and the Information Technology Department is $8.0M of which $6.5M will be funded by a grant from the SIDF and $1.5M to be funded by the NIA.

It is expected to be completed in twenty four months.

Ministry of Communication, Works…et al.

Work on the island’s road ways has continued into the second quarter.
Investments centered on the rehabilitation of Secondary Roads such as Shaws Road and Brown Hill Road as well as the rehabilitation of Major Roads continue to be an ongoing segment of the National Investment Strategy.

The overall 2017 working budget for this group of projects is $11.0M broken down as $8.0M for Major Roads Projects and $3.0M for Secondary Roads Projects.
For the period Jan – Jun 2017 $3.57M or 44.65 percent and $4.47M or 148.85 percent of the respective budgets for both Major Roads Projects and Secondary Roads Projects has been spent, with the latter exceeding its annual 2017 budget level.

The Shaws Road project is nearing completion.

A section of the 2,400 feet of Shaws Road being asphalted by the workmen from the Public Works Department on Nevis on June 14, 2017 Ministry of Health (L-r) Premier of Nevis Hon.
Vance Amory, Chairperson of the SIDF Board of Counsellors Dr. Robertine Chaderton , Counsellor Leon Lescott , Matron Aldris Dias and Medical Chief of Staff Dr. Cardell Rawlins breaking ground on May 31, 2017, for the expansion of the Alexandra Hospital project 7 The planned improvements for the Alexandra Hospital is a key aspect of the National Health Plan 2017‐2021.

The project is a jointly funded Industry initiative between the NIA and the Sugar Diversification Fund (SIDF).
The project entails various stages: reconstruction of a new Operating theatre, expansion of Diagnostic capabilities, construction of a Dialysis Unit and expansion of private ward facilities.

In the second quarter of 2017 ground was broken for the reconstruction of a state of the art Operating Theatre.

For the period to date $2.91M has been spent on the project.

The steel frame for the new wing has already been purchased and contractors are onsite to begin the construction process.
6 Economic and Financial Review, 1st Half of 2017 Ministry of Social Development Athletic Stadium The construction of the Athletic Stadium budgeted under the Ministry of Social Development continues to draw the majority of the investments in this Ministry (total Ministry Capital Expenditure $11.33M).

As of June 30th, 2017 $8.56M has been spent on the project, with a further $2.0M slated to be spent in 2018.

The project thus far has outpaced its original 2017 budget of $8.0M by $0.56M.
Several aspects of the project have been completed such as the drainage system, enclosure wall and lighting system.

The installation of the surface, which is a major aspect of the project is expected to begin in July 2017.

The costs associated with this phase of the project include not only the cost of the surface material but storage fees, insurance fees, security fees, equipment rental fees, labour and the cost of materials needed to facilitate the laying and adhering of the surface onto the ground.
To ensure the effective functioning of the lighting system a step down electrical transformer will have to be purchased and installed.

The landscaping (restoration of grass and an irrigation system) of the area after the construction is completed is an activity that is projected to cost about $0.08M.

Also an additional 1,500 yards of topsoil (estimated cost of $0.03M) will be placed in the areas between the main track and the athletes warm up track.
These three activities are additional expenses that are expected to be incurred as the project nears completion.

The project is expected to be completed by 2018 and will help to foster the growth of Sports Tourism and the development of local athletic programs geared towards the youth.

The Capital Expenditure review has revealed that many of the projects have already exceeded their budget allocations.
It is important to monitor these excesses to ensure fiscal stability, capital efficiency and effectiveness.

The Public Investment Management Assessment (PIMA) tool is a new approach developed by the IMF to assist countries in establishing a fiscally sound and integrated investment plan that is in line with the country’s National Growth Strategy.

The PIMA framework uses a three phase methodology to measure a country’s weaknesses and strengths.
The self‐assessment consists of a questionnaire that requires a country to take a hard line view of its methods and procedures as it relates to public investment.

Aligning the overall methodology in regards to each Ministries investment process with the guidelines of the PIMA self‐assessment tool could be beneficial in‐terms of project over‐run avoidance, better project selection and increased capital efficiency.
Capital efficiency is a measure of the desired level of output based on the capital outlay for each project.

This can be tabulated in the form of a ratio.

For example, a good capital efficiency ratio is one where if you spend $2 on roads you get an output of 6.5 km of roadway or a capital efficiency ratio 6.5/2 = 3.25.

Appendix 7 provides an approach to incorporating the PIMA tool into the capital investment process and a breakdown of the three phase process.
7 Economic and Financial Review, 1st Half of 2017 Debt Management 0 50,000,000 150,000,000 100,000,000 200,000,000 NIA DEBT STOCK For Period June 2016 and June 2017 Graph 6 The Central Government continues to examine its debt management practices to ensure prudence and sustainability.

Year on year Central Government Debt Stock for the period under review has remained relatively stable.
The debt stock as at June 30 2016 stood at 351.03M in contrast to the debt levels at June 30 2017 of 363.77M – a rise of 3.63 percent over the 12 month period.

Graph 6 shows the year on year changes in the various categories of instruments that make up the Central Government’s Debt Stock.

The data indicates that loans occupy the largest share of the debt stock.
Over the period June 2016 to June 2017 we see a 2.12 percent reduction in Loans, a 7.33 percent increase of 91 Day T‐bills, a 5.32 percent reduction in 365 Day T‐ bills and an 11.81 percent increase in Overdraft Facilities.

Of all the categories – Overdraft facilities have increased the most.

Graph 7 provides a comparison of debt stock levels between the period December 31st, 2016 and June 30th, 2017.
The data indicates that newly disbursed debt for up to June 30, 2017 amounted to $8.34M, an increase in the debt stock level as at December 31st, 2016 of 2.35 percent.

A portion of the increase can be attributed to the disbursement of $2.5M loan facility from the SIDF to fund the construction of the Athletic Stadium, $0.07M disbursed from the Caribbean Development Bank for the Water Development Project and the remainder may be attributed to increases in the Overdraft Facility.
Graph 8 below provides a breakdown of the total stock of Public Sector Debt.

The figures denote that not only does Domestic Public Sector Debt make up the largest share of the total Public Sector Debt but that local Overdraft Facilities, 91 Day Central Government Treasury bill and Domestic Loans are the foremost contributors.
365 Day Tbills June‐17 June‐16 91 Day Tbills 167,153,094 163,610,578 85,525,200 95,621,769 90,300,010 96,919,673 8,047,878 7,620,064 Overdraft June‐16 June‐17 Loans NIA DEBT STOCK For Period December 16 and June 17 Graph 7 200,000,000 150,000,000 100,000,000 50,000,000 ‐ Loans 91 Day Tbills 365 Day Tbills Overdraft Dec‐16 164,250,689 93,780,590 7,647,872 89,755,668 June‐17 163,610,578 96,919,673 7,620,064 95,621,769 Dec‐16 June‐17 When we consider the value of total Public Sector Debt Stock at June 30th, 2016 (see Graph 9) in comparison to that of June 30th, 2017 we see that the stock has increased by a small margin of 4.44 percent.
In 2016 levels stood at $380.76M in comparison to 2017 which is at $397.64M.

In the context of fiscal stability and debt sustainability, solvency, liquidity and credibility are important concepts.

The targeted Debt to GDP ratio is currently 60% by 2030.

St. Kitts‐Nevis was listed to have a ratio of 63.2 percent in 2016 above the average Eastern Caribbean Currency Union (ECCU) ratio of 72.6 percent (Source: ECCB 2016‐ 2017 Annual Report).
We may deduce that we are on target but while the notion of solvency is relevant, liquidity in the context of debt servicing is an important forethought when increasing the stock of debt.
8 Economic and Financial Review, 1st Half of 2017 PUBLIC SECTOR DEBT STOCK COMPOSITION For Period January to June 2017 Graph 8 100,000,000 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 ‐ 91 Day Tbill 365 Day Tbill Domestic Loans External Loans Domestic Overdraft Domestic External Bilateral Multilate ral SKN Social Security Board SKN Sugar Industry Diversific ation Fund Other Government Gauranteed Commercial Banks Government Securities 96,919,673 7,620,064 89,344,519 4,011,485 95,621,769 19,333,07414,949,659 7,442,573 35,207,45825,104,544 2,500,000 Government Securities Commercial Banks Government Gauranteed Other PUBLIC SECTOR DEBT STOCK Comparison for Period June 2016 & June 2017 Graph 9 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 ‐ 91 Day Tbill 365 Day Tbill Domestic Loans External Loans Domestic Overdraft Domestic External Bilateral Multilateral SKN Social Security Board Surrey Paving Co. SKN Sugar Industry Diversificati on Fund Jun‐16 Other Jun‐16 Government Gauranteed Jun‐16 Commercial Banks Jun‐16 Government Securities 90,300,010 8,047,878 Jun‐17 Government Securities 96,919,673 7,620,064 Jun‐17 Commercial Banks Jun‐17 Government Gauranteed Jun‐17 Other 89,542,460 4,319,862 85,525,200 13,536,816 16,201,276 89,344,519 4,011,485 95,621,769 19,333,074 14,949,659 9,058,623 37,920,993 26,311,155 0 0 7,442,573 35,207,458 25,104,544 ‐ 2,500,000 Jun‐16 Government Securities Jun‐16 Commercial Banks Jun‐16 Government Gauranteed Jun‐16 Other Jun‐17 Government Securities Jun‐17 Commercial Banks Jun‐17 Government Gauranteed Jun‐17 Other 9 Economic and Financial Review, 1st Half of 2017 International Financial Services Quarter two of 2017, saw a total of five hundred and nine‐three entities being incorporated, while the first quarter of 2017 saw a total of six hundred and fifty one entities – a reduction of Fifty –eight entities.
A breakdown of the changes is given in Table 3 below, along with the total incorporations over the same period in 2016.

Table 3: 2017 and 2016 Incorporations 2017 Q2 Product Type 2017 Q1 IBCs LLCs Trusts Foundations Total 452 180 17 2 651 397 178 16 2 593 Total 1st Half 2017 849 358 33 4 1,244 2016 Q1 2016 Q2 326 195 23 3 547 333 184 42 4 563 Total 1st Half 2016 659 379 65 7 1,100 The table above shows that there has been an overall increase in incorporations in comparison to 2016.
Total incorporations in Q2 2017 increased by 5 percent when compared to Q2 in 2016.

A further comparison of Q2 results show that incorporations fell for every product type except for IBCs.

Incorporations in IBCs increased by 9 percent, while LLCs fell by 3 percent, Trusts by 62 percent and Multiform Foundations by fifty percent.

IBCs accounted for 67 percent of total incorporations for the quarter 2.
850 803 689 473 453 600 800 400 849 659 379 1000 recorded Graph 10: Five Year Product Incorporation/ Registrations IBCs, LLCs, and Trusts recorded their largest percentage decreases in 2015, and Multiform Foundations its largest decrease in 2016.

The largest percentage increase for LLCs and Trusts occurred largest in 2016, while the increase for IBCs came in 2017.

There was no positive movement for Multiform Foundations.
Incorporations/ registrations over the five year period are broken down into product types in Graph 10.

Over the years, the product types have seen incorporations/ different changes registrations.

IBCs, LLCs, and Trusts all fluctuated throughout the entire period.

However, whilst LLCs and Trusts ended the period on the decline, IBCs has ended with a more positive trend.

Multiform Foundations declined for the entire period.
Foundations 14 2015 16 2014 7 2016 17 2013 4 2017 Trusts LLCs IBCs 358 200 294 in 29 63 60 33 65 0 During the first half of 2017, the Department generated $6.91M (as reported by the Treasury) whereas in 2016 a total of $7.07M.

With regards to quarterly performance the Department generated $3.20M for the period April to June 2017 ($3.71M Q1 2017) whereas in 2016 a total of $3.26M ($3.82M Q1 2016) was recorded.

Year on year comparisons of earnings show a downward trend in revenue generation.
However, the following revenue generators recorded increases in both Q1 and Q2; Annual Renewals, Other Revenue, and Transfer of Domicile.

In regards to the proportion of total revenue, Annual Renewals accounted for 53 percent of total revenue in Q1 and 62 percent in Q2.
10 Economic and Financial Review, 1st Half of 2017 Nevis Tourism Authority (NTA) The Nevis Tourism Authority (NTA) is actively engaged in activities that are aimed towards the achievement of its main objective, which is to make Nevis a premium year round tourist destination.

As at June 30th 2017, the 2 percent Tourism Levy amounted to $1.84M.

However, this result represents a fall off of 1 percent from the corresponding period in 2016 ($1.86M).
Table 4 Summary of NTA Tax Revenue Jan –Jun 2017 Actual (Jan‐ Jun 2017) $ 1,837,506.16 Actual (Jan‐ Jun 2016) $ 1,857,007.54 Budget (Jan‐ Jun 2017) $ 2,065,055.22 Variance Actuals 2017/2016 $ Variance Actual/Budget 2017 $ 19,501.48 227,549.06 indicates in the overall Table 4 revenue performance generation lagging behind both expectations for 2017 and results for that terms of is 2016.
During the period under review the NTA took steps to strengthen some of the identified weaknesses in the island’s Tourism Industry, such as lack of convenient airlift into the island and the islands diminutive digital presence in the global market.
Key staff members along with the NTA’s Airlift Consultant attended the Routes America forum, the Caribbean Aviation Meet up and the Caribbean Hotel and Tourism Association Market Place forum in Las Vegas, St. Martin, Bahamas and the United Kingdom (UK) respectively.

There were also other informal meetings undertaken with current airlift providers to the island throughout the period.
These discussions yielded favorable outcomes in so much as that the parties involved agreed to support the NTA’s project to create a comprehensive airlift strategy for Nevis.

The discussions also led to the re‐establishment of a relationship with Virgin Holidays, who have agreed to promote hotels on Nevis to its UK based clients.

The NTA continues to discuss ideas and possible solutions to mitigate the yearly down turn in the Tourism Sector during the summer months.
One possible solution has been to host and promote summer festivals such as the Mango and Food Festivals, which have been running now for a few years.

It is anticipated that these activities would draw visitors to the island.

Revenue data for the months of May and June 2017 indicate that the tax collected for each month outpaced that for the same months in 2016 by $0.10M and $0.06M respectively.

The most reliable benchmark of a successful Tourism Sector is Hotel Occupancy Rates.
The median rate for June 30th 2017 was 34.70 percent.

This data is not always readily available and thus contributes to a weakness of the Sector.

In general the lack of adequate statistical data impedes all the stakeholders of the Sector in regards to decision making.

The NTA in conjunction with the Organization of Eastern Caribbean States and the World Bank are embarking on a project to enhance the collection of entry point data from travelers to the island.
This regional project will benefit all ECCU member territories.

In January 2017, the NTA secured a contract with a Los Angeles based company called Studio Hyperset that specializes in social media management and the provision of other digital services.

The company will manage the island’s social media account and fashion digital campaigns to generate leads and sales to Tourism stakeholders on Nevis.
This will enlarge the digital foot print of the island with a goal of increasing awareness which should result in more visitors to the island.

The NTA has also partnered with the company TripAdvisor.

The company has agreed to host an official ‘Nevis Page’ on its website.

Nevis will now be more visible as a destination option for the millions of users of TripAdvisor.
The NTA’s revenue performance for the first half of the year 2017 is below expectations but its initiatives provide evidence of their continuous efforts to secure a steady flow of tourist to Nevis, as well as increase the islands share of the global tourist market.

11 Economic and Financial Review, 1st Half of 2017 Department of Agriculture Table 5: Quantity of Meat Produced (kg) The Abattoir Division’s overall quantity of meat produced in the first half of 2017 was 51,789.20 kg.
Payment to livestock farmers for the period totaled $219,192.41.

A total of 1979 animals were slaughtered this period .

Appendix 8 provides details on the products and value added commodities produced from the meat kind.
Commodity Q1 Q2 Total Nevis Demand Beef 5,427.23 4,253.00 9,680.23 (1/3 ND) 51,667.00 Mutton 6,197.43 5,245.00 11,442.43 67,000.00 Pork Total 14,191.54 16,475.00 30,666.54 151,333.00 25,816.20 25,973.00 51,789.20 270,000.00 During the first half of 2017 an estimated yield of 194,049.54 kg of crops were produced.

The Department has targeted ten major crops for import substitution namely: Cabbage, carrots, corn, cantaloupe, onions, sweet pepper, pumpkin, sweet potato, tomato and watermelon.
The yearly target production is 715,000 kg.

With an actual production level of 133,377.21 kg for the period under review it is clear that the department may not reach its objectives.

A large portion of crops are still being imported from overseas to help meet the market demand.

As at June 30th 2017 this figure stood at 214,451 kg.
The department has begun to export some crops to neighboring islands but the current scale of the venture is small and the immediate effects on the economy are insignificant but it symbolizes the first step in creating trade links within the region.

The Marketing Unit continues to function as a major clearing house for fruits, vegetables and livestock products to many of the outlets on Nevis.

A total throughput of 55,575 kg of crops was channeled through the Marketing unit for the period under review.
During the period a number of Fisheries products such as conch were exported to neighboring countries.

This demonstrates a further effort to enhance and develop our export markets and trade networks within the region.
Table 6: Revenue collected in the first half of 2017 Public Revenue Heads Nursery Sale Charlestown Market Sale of Produce Abattoir Fees Sale of Livestock Veterinary Division Pound Fees Small Farm Equipment Pool Cutting Fees Cotton Production Unclassified TOTAL Q1 ($) 7,665.00 Q2 ($) 6,285.00 2,085.00 3,265.25 13,920.00 15,483.50 3,789.50 0 2,778.75 7,958.20 0 16,925.00 73,870.20 1,885.00 14,583.35 18,405.00 13,271.50 6,199.50 2,320.00 2,048.75 8,926.65 0 13,544.90 87,469.65 Total ($) 13,950.00 3,970.00 17,848.60 32,325.00 28,755.00 9,989.00 2,320.00 4,827.50 16,884.85 0 30,469.90 161,339.85 Table 6 gives a breakdown of the revenue collected for the period as reported by the department.
Abattoir Fees, Sale of Produce and Other (unclassified) revenues are the main contributors.

The department remains steadfast in its determination to achieve its objectives and make a meaningful contribution to the economy through trade, food stability and job creation not only in the field of Agriculture but among its associated linkages.
12 Economic and Financial Review, 1st Half of 2017 Employment Review Jobs The data for our review period (January‐June 2017) showed that the number of employed persons on Nevis ranged from 5,601 (January) to 5,462 (June), with an average of 5,546 employed persons.

The average number of employed persons for the same period in 2016 was 5,508.

This indicates that there was an improvement of 0.7 percent (or an increase of 38 persons) of the average number of employed persons in 2017 relative to 2016.
The number of jobs on Nevis ranged from 6,014 (January) to 5,774 (June) with an average of 5,911 jobs per month.

The average number of jobs for the same period in 2016 was 5,892 which indicates that there was an increase of 0.3 percent (or 19 jobs) in the average number of jobs in 2017 relative to same period in 2016.
Wages The data for our review period (Jan‐Jun 2017) showed that gross Monthly Wages on Nevis ranged from $21.39M (January) to $17.01M (June) with an average of $18.70M in wages paid per month.

Average gross Monthly Wages improved by 2.7 percent (or $0.50M) ‐ from $18.21M per month in 2016 to $18.70M per month in 2017.

The data for the review period revealed an average of 5,911 jobs per month on Nevis.

the review period, Nevis During recorded on average 537 active employers each month.
The average wage bill of employers during the review period was $18.70M.

The slight suggest The adjoining table provides a summary of the period’s results3.

The overall a data improvement in the Labour Market, with most components marginally Federal trending upwards.

Government has indicated its plans to overall the existing Labor Laws during the current fiscal cycle.
This coupled with the positive outlook for economic growth in the region at least in the medium term (2017‐2019) may help to strengthen the market and provide favourable conditions for the parties involved.

3 Percentage change is rounded up to the nearest whole number.
13 Economic and Financial Review, 1st Half of 2017 APPENDICES 14 Economic and Financial Review, 1st Half of 2017 Appendix 1: Table 1 NEVIS ISLAND ADMINISTRATION FOR JANUARY ‐ JUNE 2017/2016 (in economic classification format) Categories Annual Budget 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half Actual/Budget 2017 2017 2017 2016 2017/2016 2017/2016 2017 Budget Budget Actual Actual Variance Variance Variance % 29.42 (1.45) (2.00) (17.58) (22.23) 48.48 (15.06) 65.19 65.19 (12.43) 16.51 - - - (100.00) (17.92) - (2.41) (18.57) - 0.54 $ $ $ $ $ Current Revenue and Grants 185,570,740 96,162,265 96,670,034.25 74,697,142.54 21,972,892 Current Revenue 140,255,640 73,662,265 66,223,629.46 67,197,142.54 (973,513) Tax Revenue 105,113,260 55,822,360 49,256,322.47 50,263,795.05 (1,007,473) Taxes on Income & Profits 14,900,000 12,060,531 8,122,603.99 9,855,059.73 (1,732,456) Corporate Income Tax Withholding Tax Social Services Levy 5,600,000 300,000 9,000,000 4,895,248 3,682,852.52 4,735,592.07 (1,052,740) 242,696 212,883.73 143,371.78 69,512 4,558,945 4,226,867.74 4,976,095.88 (749,228) Taxes on Property 3,500,000 2,363,641 1,960,843.56 1,187,005.32 773,838 Property Tax 3,500,000 2,363,641 1,960,843.56 1,187,005.32 773,838 Taxes on Domestic Goods & Services Wheel Tax Consumption Tax (Inland Rev.)
Traders Tax 42,328,260 22,271,623 16,985,244.18 19,397,062.29 (2,411,818) 2,400,000 1,415,832 1,422,234.56 1,220,687.32 201,547 - - - - - - - - 1,000.00 (1,000) (100.00) Stamp Duties 16,800,000 6,238,682 3,028,330.07 4,996,549.43 (1,968,219) (39.39) (51.46) Coastal Environmental Levy 350,000 Insurance Levy/Fees 450,000 121,261 243,334 - 105,753.50 - 150,224.21 238,462.85 - 12,500.00 105,754 (88,239) (12,500) - Vehicle Rental Levy Un Incorporated Business Tax Unclassified VAT 1,500,000 823,225 626,352.23 763,067.17 (136,715) 6,260 - - - - 19,000,000 12,470,789 10,547,850.58 1,104,499.03 10,808,403.50 (260,553) 1,356,392.02 (251,893) Licenses 1,822,000 958,500 of which: Banks Licence Business & Occupation Licence Drivers Licence 120,000 485,000 560,000 120,000 104,000.00 0.04 104,000 365,013 324,911 532,068.93 529,235.12 2,834 360,256.75 430,324.08 (70,067) (16.28) Taxes on International Trade 44,385,000 20,536,078 22,187,630.74 19,824,667.71 2,362,963 Import Duties 12,265,000 5,970,602 5,694,466.31 4,945,524.52 Excise and Export Duty 4,560,000 2,219,808 2,987,618.23 2,636,812.39 Environmental Levy 1,960,000 - 1,402,920.59 1,093,805.25 Consumption Tax 210,000 Travel Tax 350,000 102,228 170,800 33,823.52 63,539.84 48,343.27 112,172.30 Customs Service Charge 7,800,000 3,797,040 4,047,571.39 4,077,541.49 748,942 350,806 309,115 (29,716) (63,829) (29,970) VAT Other 17,000,000 8,275,600 7,972,887.43 6,895,271.92 1,077,616 240,000 - - - - Non-Tax Revenue 35,142,380 17,839,905 16,967,306.99 16,933,347.49 Rent of Government Property 426,180 212,435 192,689.40 188,875.40 33,959 3,814 11.92 15.14 13.30 28.26 (46.77) - (0.74) 15.63 - 0.20 2.02 % 0.53 (10.10) (11.76) (32.65) (24.77) (12.28) (7.28) (17.04) (17.04) (23.74) 0.45 - - - (38.26) - (23.91) - (15.42) 15.23 (13.33) 45.77 10.88 8.04 (4.62) 34.59 - (66.91) (71.70) 6.60 (3.66) - (4.89) (9.29) 15 Economic and Financial Review, 1st Half of 2017 Categories 2017 Annual Budget Budget $ Fees, Fines & Sales 255,000 Post Office 525,000 Passport, Permits, etc.
Hospital 1,432,200 850,000 2017 1st Half Budget $ 112,579 266,557 2017 1st Half Actual $ 2016 1st Half Actual $ 122,822.54 121,841.69 347,760.50 304,180.45 - 1,123,900.00 1,066,105.00 398,948 418,674.17 411,049.25 1st Half Variance $ 981 43,580 57,795 7,625 Financial Services 14,778,000 7,713,462 6,910,760.81 7,067,946.10 (157,185) Supply Office Water Service 7,900,000 6,572,500 3,675,374 3,435,382.15 3,685,296.50 (249,914) 3,164,051 2,497,413.11 2,713,906.55 (216,493) Other Non-Tax Revenue 2,403,500 2,296,500 1,917,904.31 1,374,146.55 543,758 Source: NIA Ministry of Finance 1st Half Variance % 0.81 14.33 5.42 1.85 (2.22) (6.78) (7.98) 39.57 201/2016 2017/2016 2017 1st Half Actual/Budget Variance % 9.10 30.46 - 4.94 (10.41) (6.53) (21.07) (16.49) 16 Economic and Financial Review, 1st Half of 2017 Appendix 2: Table 2 NEVIS ISLAND ADMINISTRATION FOR JANUARY - JUNE 2017/ 2016 in economic classification format EC$ 2017 2017 2017 2016 2017/2016 2017/2016 2017 Categories Annual Budget 1st Half Budget Budget $ $ 1st Half Actual $ 1st Half Actual $ 1st Half 1st Half 1st Half Actual/Budget Variance Variance Variance $ % % Current Expenditure 143,179,950.00 64,314,630.53 66,335,010.65 61,881,643.96 4,453,366.69 7.20 3.14 Personal Emoluments 77,024,950.00 35,191,755.92 35,519,450.71 34,392,324.85 1,127,125.86 Salaries Wages 51,355,550.00 23,143,736.58 22,706,330.72 22,185,434.36 520,896.36 24,509,500.00 11,471,543.30 12,179,334.97 11,635,379.10 543,955.87 3.28 2.35 4.68 Allowances 1,159,900.00 576,476.04 633,785.02 571,511.39 62,273.63 10.90 0.93 (1.89) 6.17 9.94 Goods and Services 36,643,000.00 15,283,737.93 15,345,967.76 12,209,084.84 3,136,882.92 25.69 0.41 Interest Payments 16,485,000.00 7,971,409.92 8,575,314.18 7,683,702.73 891,611.45 Domestic 15,160,000.00 7,302,345.42 7,941,619.62 7,359,421.13 582,198.49 Foreign 1,325,000.00 669,064.50 633,694.56 324,281.60 309,412.96 11.60 7.91 95.41 Principal Repayment 14,115,000.00 7,025,034.96 3,996,023.67 4,135,172.44 (139,148.77) (3.37) Domestic 8,690,000.00 4,309,014.96
 1,074,267.53 1,821,754.30 (747,486.77) (41.03) Foreign 5,425,000.00 2,716,020.00 2,921,756.14 2,313,418.14 608,338.00 26.30 Transfers & Subsidies 13,027,000.00 5,867,726.76 6,894,278.00 7,596,531.54 (702,253.54) Pensions and Gratuities Regional and Int'l Contributions Public Assistance Expenses on Overseas Missions Public Corporations 8,100,000.00 3,780,334.61 4,851,921.75 4,453,988.83 397,932.92 3,402,000.00 1,467,414.85 1,424,166.89 2,538,827.11 (1,114,660.22) (43.90) 1,525,000.00 619,977.30 618,189.36 603,715.60 14,473.76 2.40 - - - - - - - - - - - - (9.24) 8.93 7.58 8.75 (5.29) (43.12) (75.07) 7.57 17.49 28.35 (2.95) (0.29) - - Current Account Balance (2,924,310.00) 9,347,634.08 (111,381.19) 5,315,498.58 (5,426,879.77) (102.10) (101.19) Capital Revenue Land Sales Other - - - - - - - - - - - - - - - Grants 45,315,100.00 22,500,000.00 30,446,404.79 7,500,000.00 22,946,404.79 Budgetary Grants 15,000,000.00 7,500,000.00 7,500,000.00 7,500,000.00 - Capital Grants 30,315,100.00 15,000,000.00 22,946,404.79 - 22,946,404.79 - - - - - - Capital Expenditure 60,000,000.00 26,541,000.00 34,223,194.74 16,619,086.05 17,604,108.69 105.93 Fixed Investment 60,000,000.00 26,541,000.00 34,223,194.74 16,619,086.05 17,604,108.69 105.93 Below the line expenditure - - - - - - - - - 35.32 - 52.98 28.94 28.94 - 17 Economic and Financial Review, 1st Half of 2017 EC$ 2017 Categories Annual Budget Unrecorded Expenditure Net Lending Budget $ - - 2017 1st Half Budget $ - - 2017 1st Half Actual $ - - 2016 1st Half Actual $ - - 2017/2016 2017/2016 1st Half 1st Half 2017 1st Half Actual/Budget Variance Variance Variance $ - - % - - % - - - Overall Balance (17,609,210.00) 5,306,634.08 (3,888,171.14) (3,803,587.47) (84,583.67) 2.22 (173.27) Primary Balance (1,124,210.00) 13,278,044.00 4,687,143.04 3,880,115.26 807,027.78 20.80 (64.70) Source: NIA Ministry of Finance 18 Economic and Financial Review, 1st Half of 2017 Appendix 3: Table 3 NEVIS ISLAND ADMINISTRATION CAPITAL EXPENDITURE BY PROJECTS,
 PROGRAMS AND MINISTRIES FOR JANUARY ‐ JUNE 2017/2016 CAPITAL PROJECTS 1st Half 1st Half 1st Half 1st Half 2017 2016 2017/2016 2017/2016 Actual Actual Variance Variance $ $ $ % Premier's Ministry - Upgrade of Disaster Management 499,080.60 30,776.92 468,303.68 1,521.61 Upgrade of Police Service 298,988.31 58,561.59 240,426.72 410.55 STEP Programe 81,655.86 - 81,655.86 - Total Premier's Ministry 879,724.77 89,338.51 790,386.26 884.71 (46.32) (21.53) - Ministry of Finance: Ministry Administration Computerization of Government Services 135,263.87 251,991.31 (116,727.44) Government Tools, Equipment.. 147,288.17 187,707.56 (40,419.39) Acquisition - Purchase of Lands (Appr) Feasibility Study -Airport Expansion - - - - 188,875.94 (188,875.94) (100.00) Statistical Survey Vehicles 11,251.21 14,740.00 (3,488.79) 238,483.36 189,253.22 49,230.14 Custom Enforcement Upgrade 99,336.34 24,687.59 74,648.75 Construction Police Barracks - Butlers Supplies and Materials for Alexander Hospital Population and Housing Census - - - - - 636,819.62 (636,819.62) - - - 26.01 302.37 - - - Reconstruction of Treasury Building 289,373.23 97,340.00 192,033.23 197.28 Construction of Pier STEP Conference IBM system Upgrade 3,803,660.00 - - - - - 3,803,660.00 - - - - - Total Ministry of Finance 4,724,656.18 1,591,415.24 3,133,240.94 196.88 Ministry of Communications: Ministry Administration Regulations to the Physical Planning Ordinance - - - Road Improvement Project 11,160.00 11,623.00 (463.00) Secondary Road / Drag Strip Technical Assistance Land Settlement - - - - - - 30,322.55 84,494.46 (54,171.91) Water Development Program 452,449.04 1,635,531.22 (1,183,082.18) Water Drilling Program 1,521,438.77 835,312.38 686,126.39 Major Road Projects 3,572,251.01 2,835,463.66 736,787.35 - (3.98) - - (64.11) (72.34) 82.14 25.98 Land Information Project 82,793.56 686,585.47 (603,791.91) (87.94) Road Equipment and Material - - - Renewable Energy Project 95,855.29 102,430.61 (6,575.32) - - - 1.00 (6.42) - Mail
 Boxes Administration 5,766,270.22 6,191,440.80 (425,170.58) (6.87) 19 Economic and Financial Review, 1st Half of 2017 NEVIS ISLAND ADMINISTRATION CAPITAL EXPENDITURE BY PROJECTS, PROGRAMS AND MINISTRIES FOR JANUARY ‐ JUNE 2017/2016 CAPITAL PROJECTS 1st Half 1st Half 1st Half 1st Half 2017 2016 2017/2016 2017/2016 Actual Actual Variance Variance $ $ $ % Public Works Secondary Village Roads 4,465,554.44 1,897,922.22 2,567,632.22 135.29 Road Improvement - 88,323.04 (88,323.04) (100.00) Renovation & Expan.
of Government Building 230,923.45 431,806.27 (200,882.82) (46.52) Special Maintenance of Schools 184,572.09 110,402.87 74,169.22 67.18 Renovation of Bath Hotel - Renovation of Government House 270,863.25 - - - 270,863.25 - - Purchase and Maintenance of Asphalt Plant 20,216.32 51,148.01 (30,931.69) (60.47) Hamilton Government Road Project - - - - Refurbishment of Ministry of Eduction Building 25,147.07 245,688.22 (220,541.15) (89.76) Construction of Labour Department Office - - - - Public Works Total 5,197,276.62 2,825,290.63 2,371,985.99 83.96 Water Department Water Service Upgrade 347,441.87 530,612.21 (183,170.34) (34.52) Total Water Department 347,441.87 530,612.21 (183,170.34) (34.52) Total Ministry of Communication 11,310,988.71 9,547,343.64 1,763,645.07 Balance c/f 16,915,369.66 11,228,097.39 5,687,272.27 Source: NIA Ministry of Finance 18.47 50.65 20 Economic and Financial Review, 1st Half of 2017 Appendix 4: Table 4 NEVIS ISLAND ADMINISTRATION CAPITAL EXPENDITURE BY PROJECTS, PROGRAMS AND MINISTRIES FOR JANUARY - JUNE 2017/ 2016 CAPITAL PROJECTS 2017 1st Half Actual $ 1st Half Actual $ 1st Half Variance $ 2016 2017/2016 2017/2016 Balance b/f Ministry of Agriculture: Administration 16,915,369.66 11,228,097.39 5,687,272.27 Procurement of Agricultural Equipment Repairs to Agriculture Processing Facilities-Expansion of Abattoir ect.
Animal Control Indian Castle Well 87,789.36 44,176.17 32,315.75 - 105,104.55 (17,315.19) 496,810.48 (452,634.31) 14,225.00 18,090.75 - - Upgrade and Expansion Vetinary Clinic 109,173.28 206,117.18 (96,943.90) Fisheries Biodiversity Project Total Ministry of Agriculture - 181,143.46 (181,143.46) 273,454.56 1,003,400.67 (729,946.11) Ministry of Health: Administration Nevis Environmental Work Program 468,254.22 430,659.94 37,594.28 Purchase of Vehicle (Appropriation) - - - Procurement Pharmaceutical Supplies 19,529.15 23,475.30 (3,946.15) Procurement Medical Supplies 217,888.14 358,910.86 (141,022.72) Upgrade Community Health Centres 145,137.81 42,966.11 102,171.70 Improvement to Alexandra Hospital & Nurses Home 2,912,004.50 418,170.56 2,493,833.94 Total Administration Total Ministry of Health 3,762,813.82 1,274,182.77 2,488,631.05 3,762,813.82 1,274,182.77 2,488,631.05 Ministry of Tour.
Cult.

Govt.

Info.
Upgrade and Development of Historical Sites Development of Media Services Construction of Pinney's Recreational Park - 52,972.54 24,200.00 - - 63,384.57 (10,412.03) - 24,200.00 Tourism Product Development 331,183.72 837,247.05 (506,063.33) Renovation of Cultural Complex 1,259,086.36 - 1,259,086.36 Total Ministry of Tourism 1,667,442.62 900,631.62 766,811.00 1st Half Variance % 50.65 (16.47) (91.11) 127.18 - (47.03) (100.00) (72.75) 8.73 - (16.81) (39.29) - 596.37 195.31 195.31 - (16.43) - (60.44) - 85.14 - - Ministry of Education & Library Services: Provide Furniture for Schools Computerization of Schools School Meals Program Special Maintenance of Schools Expansion of Charlestown Secondary School Upgrade Primary Schools including Kitchens, Lunchrooms etc 9,971.02 1,802.28 - - 9,971.02 1,802.28 21,872.80 98,956.20 (77,083.40) (77.90) - - - - - - 15,105.00 24,042.07 (8,937.07) Refurbishment of Ministry of Education Building - - - - - (37.17) - 21 Economic and Financial Review, 1st Half of 2017 NEVIS ISLAND ADMINISTRATION CAPITAL EXPENDITURE BY PROJECTS, PROGRAMS AND MINISTRIES FOR JANUARY - JUNE 2017/ 2016 CAPITAL PROJECTS TVET Education Project Total Ministry of Education Ministry of Social Development Improvement to Grove Park 2017 1st Half Actual $ 226,252.64 2016 2017/2016 2017/2016 1st Half Actual $ - 1st Half Variance $ 226,252.64 1st Half Variance % - 275,003.74 122,998.27 152,005.47 123.58 - - - Upgrade and Maintenance of Community Centers 184,821.34 77,663.67 107,157.67 Upgrade of Cultural Complex - - - Improvement and maintenance to Sporting Facilities 1,856,745.79 1,041,362.46 815,383.33 Purchase of Sporting Equipment Construction of Athletic Stadium 14,656.85 8,555,739.85 Establishment of a Research & Documentation Centre - Women Empowerment Programs 203,325.88 - - - - 14,656.85 8,555,739.85 - 203,325.88 Community Housing Assistance 110,198.78 476,661.23 (366,462.45) (76.88) Senior Citizens Hot Meal Kitchen National Training Programs (HYPE) - - - - - - - - Constituency Empowerment 95,050.34 230,807.56
 (135,757.22) (58.82) Construction of Social Development Complex 128,426.72 - 128,426.72 - New River Playing Field 14,440.00 18,232.00 (3,792.00) (20.80) Purchase of Land and Upgrade of Cotton ground Playing Field Renovation of Nevis Performing Arts Centre - - - - 21,233.33 (21,233.33) - - Youth Enterprise Scheme 63,979.60 69,155.41 (5,175.81) (7.48) Basic Needs Trust Fund Projects (BNTF) 101,725.19 37,969.10 63,756.09 Tri Star Nevis Upgrade of Drag Strip - - - - 116,690.57 (116,690.57) (100.00) - 137.98 - 78.30 - - - - - - Total Ministry of Social Development 11,329,110.34 2,089,775.33 9,239,335.01 Total Government Wide Capital Expenditure 34,223,194.74 16,619,086.05 17,604,108.69 442.12 105.93 Source: NIA Ministry of Finance 22 Economic and Financial Review, 1st Half of 2017 Appendix 5 January 1st 2017 to June 30th 2017 and January 1st 2016 to June 30th 2016 Total Revenue Composition January 1st 2017 to June 30th 2017 January 1st 2016 to June 30th 2016 Tax Revenue 49,256,322 Tax Revenue 50,263,795 Non Tax Revenue 16,967,307 Non Tax Revenue 16,933,347 Capital Revenue 30,446,405 Capital Revenue 7,500,000 Grand Total 96,670,034 Grand Total 74,697,142 Tax Revenue, 49,256,322 , 51% CHART 9B TOTAL REVENUE JAN ‐ JUN 2017 Capital Revenue, 30,446,405 , 31% Non Tax Revenue, 16,967,307 , 18% CHART 9C TOTAL REVENUE JAN ‐ JUN 2016 Capital Revenue 10% Non Tax Revenue 23% Source: NIA Ministry of Finance Tax Revenue 67% 23 Economic and Financial Review, 1st Half of 2017 Appendix 6 Table 5 NEVIS ISLAND ADMINISTRATION FOR JANUARY‐ JUNE 2017/2016 COMPARISON OF ACTUAL REVENUE & EXPENDITURE 1st Half 2017 $ 1st Half 2016 $ 1st Half Variance $ 1st Half Variance % ITEMS Revenue Capital Revenue 30,446,404.79 7,500,000.00 22,946,404.79 305.95 Sale of Assets Loans Development Aide (Grants) ‐ 2,500,000.00 27,946,404.79 ‐ ‐ ‐ 2,500,000.00 ‐ ‐ 7,500,000.00 20,446,404.79 272.62 Current Revenue 66,223,629.46 67,197,142.54 (973,513.08) (1.45) Total Revenue 96,670,034.25 74,697,142.54
 21,972,891.71 29.42 Expenditure Capital Expenditure 34,223,194.74 16,619,086.05 17,604,108.69 Revenue Loans 16,230,793.15 14,213,248.65 2,017,544.50 6,143,987.77 ‐ 6,143,987.77 105.93 14.19 ‐ Development Aide 11,848,413.82 2,405,837.40 9,442,576.42 392.49 Current Expenditure 70,331,034.32 66,016,816.40 4,314,217.92 6.54 Total Expenditure 104,554,229.06 82,635,902.45 21,918,326.61 112.46 Capital Surplus (Deficit) Current Surplus (Deficit) Total Surplus (Deficit) (3,776,789.95) (9,119,086.05) 5,342,296.10 (4,107,404.86) 1,180,326.14 (5,287,731.00) (7,884,194.81) (7,938,759.91) 54,565.10 200.03 (7.98) 192.04 Source: NIA Ministry of Finance 24 Economic and Financial Review, 1st Half of 2017 Appendix 7: Incorporation of the PIMA tool into the Capital Investment Process Fiscal Rules PIMA Self‐Assessment Planning Project Selection Budgeting Pipeline National Strategic Plan Implementation Economic & Social Growth Good outcome & Capital Efficiency Ratio Assessment (Outcome and Output – measure capital efficiency) Source: Cartac Workshop held in Grenada at the Radisson Beach Hotel on May 30th – June 2nd 2017 25 Economic and Financial Review, 1st Half of 2017 Appendix 8 Product and quantity of value added commodities sold at the Abattoir, 2017(kg) Product Q1 Q2 Total Smoke Ham 333.26 158.70 491.96 Smoke Chicken 138.00 94.63 232.63 Smoke Beef Ground Beef Ground Pork Beef Burgers 15.00 0 15.00 3036.00 2019.00 5055.00 55.00 33.00 88.00 996.88 819.95 1816.83 Seasoned Beef Burgers 177.28 72.45 249.73 Seasoned Pork Roast (cooked) 42.00 0 42.00 Seasoned Pork Roast 98.00 84.00 182.00 Chicken Burgers 80.2 104.65 184.85 Pork Burgers Pork Bacon Beef Sausages Beef Nuggets Pork Sausages Pork Nuggets Beef/ Pork Sausages Chicken Sausages 0 84.00 30.00 0 180 0 0 60 0 0 0 0 75 0 0 15 0 84.00 30.00 0 255.00 0 0 75.00 Tripe 535.00 739.26 1,274.26 Ground Chicken 279 83 362.00 Total 6,139.62 4,298.64 10,438.26 Source: Abattoir Records 26