TNAG-1001-FCO40-1237-Future-of-the-Dependent-Territories-including--Report-of-the-1981 — Page 211

ANGUILLA: FINANCIAL POSITION

SUPPLEMENTARY ALLOCATION OF GRANT-IN-AID

ESSENTIAL FACTS

1.

Anguilla has requested supplementary grant-in-aid to cover

her (expected) increased budgetary deficit for the financial

and calendar year 1980. This was due to an alleged loss of

separation revenue. However Anguilla does not qualify under

budgetary aid regulations.

2. The sum of grant-in-aid requested originally was up to

EC$900,000 (about £150,000) but HM Commissioner has since

suggested with Dev Div's support that only half that sum may

be required.

3.

On 6 January HM Commissioner reported that there may, after

all, be no increased deficit on the 1980 budget, but pleaded

for the supplement to be approved in any case as a mark of

political goodwill.

4.

The normal position is that an increased deficit in one year's account must be carried forward for funding in the next year but one. The level of budgetary aid must be determined on the basis of actual need and in strict budgetary context. We have said that we cannot agree to a political subvention. More details of the basis of Anguilla!

of the basis of Anguilla's expenditure and estimates have been requested.

West Indian & Atl

ilantia Daunz