V.I. Government Faces $91 Million Budget Shortfall Amid Revenue Declines

Mid-year financial review reveals significant drop in corporate income tax, prompting concerns over fiscal stability

During the legally mandated mid-year financial review of the V.I. government on Thursday, V.I. Office of Management and Budget Director, Jenifer O’Neal, told lawmakers that a myriad of factors are responsible for the current shortfall in projected revenues for fiscal year 2024.‌

Speaking to a Senate Committee on Budget, Appropriations and Finance hearing, Ms. O'Neal made known that as of April 30th, 2024, the government’s revenue collections inclusive of hotel and non-hotel taxes totaled $537,081,652. The figure “reflects a decrease of just over 4% in comparison to revenue collections for the same period in fiscal year 2023,” the OMB director explained. Based on current trends and projections, revenue collections by the end of the fiscal year are estimated to come in at just over $900 million, she indicated. The total revenue figure, however, will fall short of the $998,002,428 that has been appropriated for the general fund and the territory’s tourism advertising revolving fund.