- ‘$61.1 million fund set aside for rainy day’-Gonsalves
The establishment and implementation of a Contingencies Fund by the government of St. Vincent in 2017, despite controversy, has shown to be a wise decision.
The Finance Minister, Camilo Gonsalves, stated that the fund, which is funded by a consumption tax and a charge on visitor accommodations, currently has a total of $61.1 million.
“We have never before had more money set aside to respond to a rainy day”, Gonsalves said.
“The Contingencies Fund is now better financed than the World Bank-funded US$20 million Catastrophe Deferred Drawdown Option (CatDDO)24 that we utilised in the wake of the 2021 volcanic eruptions. However, the US$20 million CatDDO was an essential tool in our response to that disaster.”
Gonsalves stated that the government is presently engaged in discussions with the World Bank to secure an additional CatDDO for Saint Vincent and the Grenadines. This would effectively supplement the existing $61 million Contingencies Fund with an additional $54 million that would be made available in the event of a natural calamity.
“This is prudent planning and preparation. There is a lot that we could do with $115 million today. But we must make difficult decisions to balance the needs of today with the challenges of tomorrow.”
Gonsalves said the government has amassed vast experience in what it takes to prepare for and respond to a natural disaster.
“We are certain that we must continue to build up buffers and reserves to help us prepare for the next inevitable flood, drought, storm, hurricane, eruption, or other disaster,” Gonsalves said.
