It is now history. The budget that was expected to be presented before the national parliament has been postponed. Had it being presented, the budget would have outlined the revenue and expenditure for the ensuing year 2013, and also the methods by which the Government intended to promote economic growth and development in the Federation.
In an address to the nation on the evening of December 10th the Honorable Prime Minister in speaking to the postponement of the parliament, gave a preview of the budget. He spoke among other things, that the economy was showing signs of recovery that all the major sectors were showing surpluses and the debt to GDP ratio had fallen well below 100 percent. If any of this is true, one must agree that the Honorable Prime Minister’s performance as Minister of finance has been remarkable.
This would be an extraordinary turn of events, because an examination of successive budgets of this Government would reveal that for the most part they were embellished by empty rhetoric and little attempt has been made to stimulate the economy or mitigate the harsh economic realities facing this Nation. The Federation is facing its worst and most entrenched recession facing this country. Therefore, any attempt at using diversionary tactics to draw the citizen’s attention away from their sufferings should not be allowed. It is about time, that the politicians stop treating the citizens of this Federation as fools. The citizens don’t have to read statics or understand the mechanisms of economics to know whether they are doing well, and whether or not they are able to meet the mere necessities of life, like putting food on the table.
Despite the Honorable Prime Minister’s assurances that better economic times are coming, the reality is that harsh economic conditions will continue into 2013 include rising unemployment especially amongst the youths; reduction in investment at all levels of the economy; rising prices; balance of payments deficits accentuated by rising food importation and a lack of programs and policies aimed at stimulating the productive sectors of the economy. It is about time for the Honorable Prime Minister to stop his ridiculous political rhetoric.
One does not have to be a student of economics to understand that the economic turnaround espoused in his address is most unlikely. Such a miraculous change is not possible given the very narrow revenue base even when coupled with the “hair cut” by which investors were forced to accept a reduction in their investment and the land for debt swap with the National Bank. The IMF in its report on the economy revised its projected growth rate on this economy to minus 0.7 percent in 2012. This downward trend is expected to continue into 2013.
Yet the Prime Minister in his broadcast sought to project an economy abound with economic growth and prosperity. The ECCB in its Financial and Economic review 2011 on this economy highlighted the continued downward trend.
The Nation would expect a budget which would at least address the present and future problems such as poverty alleviation; the financing of and direction of education and training in this Federation; the provision of health services; national security; social services and general welfare. The economy has been in a recession since 2008. There has not been any real attempt by the Government to develop the required stimulus package since it has no resources at its disposal and a continuing refusal to include the private sector in its policy making exercise.
The Caribbean Development Bank observed in 2008 this exclusion of the private sector from the development process would negatively impact the economy and retard economic growth. The advent of the IMF into the economic and financial environment of this Federation has worsened the recession since the introduction of its austerity measures and the introduction of the VAT. At the same time unemployment in all sectors of the economy increased, especially in the tourism sector.
The Nation now requires men and women of vision; with integrity; committed to a common goal of uniting and healing the country; who possess the common decency and intellect to live according to the Federation’s motto, country above self.
December 12th 2012
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