Pursuant to Section 12 of the Fiscal Resilience Act (No. 11 of 2023), the Fiscal Resilience Oversight Committee (FROC), submitted, on 24 April 2025, its 2024 Annual Report to the Clerk of Parliament for onward transmission to the Honourable Leo Cato, Speaker of the House of Representatives and Chairman of the Committee of Privileges.
The Fiscal Resilience Act provides a framework for Government’s adherence to fiscal discipline, transparency and accountability in Government’s financial transactions, and fiscal and debt sustainability. Among its functions, The FROC is mandated to monitor, and report to the House of Representatives on the compliance of Government with the provisions of the Fiscal Resilience Act. The findings of the FROC are outlined in the FROC 2024 Annual Report.
The Annual Report commences with the economic developments in 2024, incorporating the impact of Hurricane Beryl and the other climatic hazards that occurred during the year. It highlights the estimated economic growth rate of 3.7 per cent, influenced primarily by the continued expansion in tourism. The FROC noted the moderate growth in construction and wholesale and retail trade, sectors that normally boost economic activity in the aftermath of hurricanes, requiring a reexamination of the growth rate of these sectors.
On the external account, higher imports contributed to a widening of the merchandise trade deficit which was partially offset by inflows from trade in services. The foreign exchange earnings through capital and financial inflows were dampened by significant financial outflows.
Central Government finances strengthened substantially in 2024 with a primary balance surplus of 11.3 per cent of GDP, which was a much more favourable outcome than was anticipated when Section 9 of the FRA was activated. The public debt to GDP ratio trended downwards and was within the ceiling set for 2024.
With the passage of Hurricane Beryl on 1st July 2024, Section 9 of the Fiscal Resilience Act was activated, and the primary balance rule and the debt target were suspended for 2024. With an estimated primary balance deficit for 2025, the suspension of Section 9 of the FRA was extended to 2025. The Government complied with its statutory obligations for the suspension of Section 9 of the FRA relating to the primary balance rule and the debt target for 2024 and 2025. The wage bill remains within the cap set in the Fiscal Resilience Act.
The FROC noted that there was no need for revisions to the performance guidelines for the statutory bodies (SBs) and state-owned enterprises (SOEs), as they were provided with the Cabinet-approved SBs and SOEs Handbook, which covers financial management and governance matters.
The FROC examined the compliance of the Government with the principles of fiscal transparency through the publication of reports as legislated. The Mid-year Fiscal Policy Review was published as required by the legislation. The FROC noted that the disruption caused by Hurricane Beryl resulted in the delayed publication of the Medium-term Fiscal Framework and the presentation of the national budget in the new fiscal year. Consequently, the reports that are required to be presented simultaneously with the national budget were presented in the new fiscal year, and the process was in compliance with the legislation. The FROC commended the progress with the submission to Parliament of the audited public accounts for 2016 to 2019. The FROC urged the submission of the outstanding audited public accounts to Parliament, and to examine the financial legislation to ensure that the schedules for the publication of reports are practical.
The FROC, on review of the operation of the Fiscal Resilience Act in 2024, restated its recommendations for refining the Fiscal Resilience Act, improving fiscal transparency and for supporting economic growth and transformation.
The FROC will be answering questions on the Annual Report and fiscal and debt matters that are under the ambit of the FROC at a ‘Press Briefing’ scheduled to be held virtually, via the Government Information Services Platform, at 10 am on Thursday, 7 May 2025.
For further information, contact the FROC via email at [email protected], telephone 1 473 458 8085, or our PO Box 3477.
The FROC 2024 Annual Report and the FROC 2024 Annual Report at A Glance can be sourced from the FROC website and the website of the Ministry of Finance.
Fiscal Resilience Oversight Committee