The Fiscal Resilience Act Origin & Objectives
The Fiscal Resilience Act No. 11 of 2023 replaced the repealed Fiscal Responsibility Act No. 29 of 2015 which operated from 2016 to 2023. The Fiscal Responsibility Act was an important component of a package of financial legislation during a period marked by the restructuring of public debt and the implementation of the Structural Adjustment Programme. The main objective of the financial legislation was to ensure the pursuit of transparent, accountable, and sustainable fiscal policy.
2016
Mr. Richard Duncan
Previous Chairman of the Fiscal Resilience Oversight Committee.
2016
Dr. Angus Friday
From Fiscal Responsibility to Fiscal Resilience
The Fiscal Resilience Act was effective from 1st January 2024. The Fiscal Resilience Act does away with the notion of fiscal responsibility and substitutes the concept of fiscal resilience. This demonstrates a refocus on shoring up the fiscal regime for long term sustainability and improved capacity to withstand economic shocks.
In the Fiscal Resilience Act, the provisions are provided with clarity which allows for ease of implementation, and for monitoring and reporting on compliance of the Government with the Act. Additionally, the
Fiscal Resilience Act, with a lower required minimum primary balance of 1.5 per cent of GDP, a higher wage bill cap of 13 per cent of GDP and a debt to GDP ratio of 60 per cent to be achieved by 2035, the Fiscal Resilience Act provides flexibility for the Government to manage the economy with the use of fiscal policy.
Connect With Us
Contact Info
St. George Grenada.
Mon – Fri: 8:00 am – 6:00 pm
Useful Links
News & Updates
Stay updated with the latest from FROC by subscribing to our newsletter! .