Medium Term Fiscal Plan
On 23rd April 2012, the Protocols for Effective Financial Management (Protocols) were signed between the Virgin Islands and UK Governments. This Medium Term Fiscal Plan (MTFP) represents the Government of the Virgin Islands (GOVI)’s commitment to medium-term planning, value for money, risk management, and accountability as outlined in the Protocols.
The MTFP assesses the fiscal and macroeconomic performance of the Virgin Islands, presents the GOVI’s development and fiscal objectives over the subsequent three years, and sets out the path to be followed in order to meet these objectives. Led by its development strategy which embraces Social, Economic, Environmental and Direction/Governance (SEED) themes, the GOVI aims to accomplish socioeconomic development. With its fiscal strategy, which focuses on building reserves, and improving the recurrent balance and overall expenditure management, the GOVI intends to achieve fiscal sustainability and maintain an environment conducive to economic growth.
The specific objectives of the annually updated MTFP are to:
- Provide a distinct link between the GOVI’s development strategy and its fiscal obligations;
- Assess the macroeconomic performance and fiscal sustainability of the Virgin Islands based on past trends and future development obligations;
- Promote fiscal discipline by establishing specific targets and strategies for Central Government’s revenue collection, expenditure prioritisation, and debt management;
- Manage fiscal risk by closely examining current and future debt obligations (including contingent liabilities) based on development objectives and financial capabilities;
- Provide transparency and accountability in managing the financial affairs of the Virgin Islands;
- Support the multi-year performance-based budget process by providing the framework for medium-term planning; and
- Guide decisions that promote effective and efficient allocation of resources.