Despite high levels of per capita incomes and good social service provision, poverty remains a persistent problem in St. Kitts and Nevis. To improve competitiveness, restore rapid economic growth, and ensure its medium-term sustainability in the context of the currency union, the main challenges to the St. Kitts and Nevis government are to (a) tighten fiscal policy, notably through expenditure cuts
(b) increase the efficiency of public investments and public service delivery
(c) strengthen regulation and efficiency of public utilities and sea/air transport
and (d) promote education and skills development to prepare the population, notably the poor, to take advantage of new opportunities in the global environment. The report is organized as follows:
- Chapter 1 discusses fiscal sustainability in St. Kitts and Nevis and presents options for fiscal consolidation
- Chapter 2 discusses the role of the business cycle in the design of fiscal policy by reviewing the cyclical components of the fiscal accounts
- Chapter 3 discusses the budget management system in place and its effect on budgetary outcomes
- Chapter 4 examines the Public Sector Investment Program
- Chapter 5 discusses public sector employment and compensation
- Chapter s 6 and 7 examine public expenditures and outcomes in the education and health sectors
and
- Chapter 8, the final chapter, discusses social protection programs.