To provide reliable, relevant and robust analysis and policy advice on Fiscal and Macroeconomic matters.
To support the Ministry of Finance in formulating and monitoring the implementation of Fiscal Policy while strengthening the analytical basis of Fiscal Reform
Who we are…….
The need for comprehensive fiscal analysis and evidence based policy advice resulted in the formation of the Macro Fiscal Unit (MFU) in January 2011. As a part of the Ministry of Finance, the MFU works closely with the Financial Secretary, the Budget Unit and the Development Planning Unit to provide recommendations to the Minister of Finance on macroeconomic and fiscal targets and policies. More specifically the MFU is responsible for developing and monitoring the Virgin Island’s fiscal framework. This includes: forecasting fiscal variables such as revenues, expenditure and financing; advising on fiscal policy development; analysing the macroeconomic environment; and advising the Financial Secretary and Minister of Finance on emerging near and medium term economic and fiscal risks.
What we do…….
The MFU, with inputs from various Units and Departments within the Government of the Virgin Islands performs the following core functions:
1. Fiscal Analysis and Forecasting
- Provide analysis on revenue, expenditure and financing trends
- Develop projections for revenues, expenditures and financing taking into consideration macroeconomic conditions such as output, inflation and unemployment as well as various fiscal policy scenarios
- Use revenue forecasts to determine future budget balances, constraints on expenditure, requirements for debt financing and revenue sharing allocations
2. Fiscal Policy Development
- Set fiscal policy targets based on analysis and forecasts
- Ensure that fiscal policy is aligned with the government’s economic and social goals
- Identify fiscal risks associated with proposed policies
3. Fiscal Monitoring
- Analyse variances between budgeted financing, revenue and expenditure targets and actual outcomes providing reasons for deviations and their implications and what fiscal action is required to rectify
- Provide advice on corrective policies including their impact on the short and medium term fiscal framework
4. Macroeconomic Analysis and Policy Advice
- Establish a consistent macroeconomic framework, through analysis, forecasts and research, which serves as a basis for fiscal forecasting
- Update macroeconomic framework through the continuous assessment of economic developments
- Analyse the economic and social impacts of fiscal policies
5. Revenue Policy Analysis and Advice
- Identify and evaluate the effects of existing and proposed revenue generating policies on the economy and fiscal framework with specific focus on Tax Policy
6. Expenditure Analysis and Planning
- Develop a comprehensive understanding of programmatic and fiscal operations, examining and analyzing departmental budgets, financial structures, expenditure trends and budget estimates
- Provide advice on how to improve control and management of government resources by evaluating programmes, projects, budget allocations, and other expenditure policies, including analyses of alternative budget allocations
7. Debt Policy Analysis
- Assist in the development of the Debt Management Structure including debt statistics, policies and strategies
- Ensure that both the level and rate of growth in the public debt is sustainable given various economic scenarios
- Establish a cost and risk management framework for the Government’s debt portfolio
- Produce cash flow projections regarding debt service