Frequently Asked Questions List

The following are a list of frequently asked questions with the respective response from the Ministry of Finance. Select one of the listed tabs below to expand the respective FAQ of your choice:

  • What is the core responsibility of the Ministry of Finance +

    The core responsibility of the Ministry of Finance can be described as enforcing the fiscal policy as directed by Cabinet. The Ministry does this by ensuring that revenue collections through the main revenue departments are enough to cover the recurrent expenditure and the capital II expenditure. For example, the current fiscal policy aims to achieve a Primary Surplus of 2% of GDP and an overall deficit of 2% of GDP.  One of the principal responsibilities of the Ministry of Finance is also to manage the public debt and especially Central Government debt. The Ministry ensures that debt service payments (payments of interest and principal) are made on a timely basis and liaises with the Central Bank of Belize to ensure that there is enough foreign exchange to meet external debt service. The debt service is tied to the disbursement of new loans as these disbursements finance Cap. III activities of the government and help contain the overall deficit at a certain level – at the moment at the projected 2% of GDP. Current disbursement of loans also help provide the foreign exchange (usually United States dollars) to service especially the repayment of principal. When the principal payments are more than the disbursements of new loans the situation is classified as there being a net outflow of capital and vice versa. Another of the core responsibilities of the Ministry of Finance is to prepare the annual Budget Estimates of Revenue and Expenditure. Work on the Budget usually commences with the issue of a calendar of activities that begins with the “Budget Call” and ends with the Appropriation Act which authorizes the Government of Belize to spend proceeds from the Consolidated Revenue Fund. …
  • What is the main source of revenue for the Government of Belize? +

    The Government of Belize relies on taxes to finance its operations. The three main revenue earners are Income Taxes, Custom Duties and General Sales Tax.  Of recent an important source of revenue has become the royalties received from petroleum operations but these are expected to decline as the extraction of crude also declines.  …
  • What would cause our currency to devalue? +

    In short devaluation could be caused when the public (private sector and government) no longer has confidence that the exchange rate of US $1.00 = BZ $2.00 can continue. This, however, depends on general equilibriums in the monetary, fiscal and balance of payment of the economy.    It has been argued that the main monetary policy of the Government of Belize (via the Central Bank of Belize) is to maintain the parity of the Belize Dollar. In this scenario the Central Bank would most certainly intervene in the foreign exchange markets to stabilize the exchange rate if the need arises.  There would also be fiscal policy measures geared at removing pressure on the foreign exchange rate. …
  • How can citizens of Belize help to keep our Belizean currency strong? +

    By buying products made in Belize and by being a tourist in your own country. In short,  by keeping your “dollars at home”. …
  • What actions contribute to the devaluation of the Belizean currency? +

    One of the actions is a strong import demand that would lead to a strong demand of foreign currency. …
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