The Fiscal Responsibility Oversight Committee (FROC) says there are a number of grey areas of concern which it is hoping that government would address and among the concerned areas are public private partnership arrangements.
Chair of FROC Richard Duncan says they are awaiting the requisite reports, to properly examine Grenada’s fiscal situation.
“We are saying that they[government] are compliant but there are some reservations that we have and that really and truly has to do with the coverage of the data as far as the state owned enterprises or the covered public entities are concerned. Again those are definitions in law and the mechanism to capture all of the information from these entities is not yet in place or as effective as we think it should be.
Another red flag he says is the debt to GDP ratio.
The fiscal responsibility act says government should not exceed 5%.
The rate stands at 7.8 percent and from says government is compliant, with reservations.
“That the debt incurred by those entities should not exceed 5% of GDP. We’re saying that this is an area of non-compliance only because we are yet to be satisfied that the fiscal authorities have properly examined all the arrangement that exist to determine, one, whether or not there are public private partnership arrangements and two,what are the liabilities if any these arrangements have incurred in the past and need to be accounted for.”
