It was recently announced that the government of the Virgin Islands instituted a hiring freeze and travel restrictions for public service workers as part of its measures to cut costs while investigating a $20 million salary discrepancy found in this year’s budget.
During the Friday August 16th House of Assembly debate, leader of Government business and Minister of Finance Dr. Hon. Natalio D. Wheatley made the disclosure.
According to the Premier, the issue arose from a new salary structure implemented this year. Some $11.7 million for the changes. However, upon review, the Ministry of Finance identified a significant difference between the budgeted amount and the actual amount needed.
He said, “The analysis revealed that there was a significant variance between the funding required for personal emoluments (salaries) for the current officers.”
Wheatley further disclosed that an investigation will be conducted “into the circumstances which led to this wide variance.” Further adding that Governor Daniel Pruce approved the investigation.
He stated, “I’ve made a request to the Governor, who is constitutionally responsible for the terms and conditions of employment of public officers, for an investigation into the circumstances which led to this wide variance and the governor has agreed for this investigation to be conducted.”
In an effort to seek to remedy the significant financial budgeting hole, the government has chosen to freeze all non-essential hiring, restricted non-essential travel for government employees, and advanced the implementation of a contributory pension scheme.
Premier Wheatley stated that he would be forming a committee to develop and consider proposals for revenue-raising initiatives and cost-saving measures and will be exploring ways to generate additional revenue, including reviewing fees charged by various departments.