BASSETERRE, St. Kitts - LEADER of the Opposition, Dr. Denzel Douglas came out swinging at the 2021 Budget, which is still being debated in the National Assembly.
Prime Minister and Minister of Finance, Dr. Timothy Harris laid the $867.9M Budget in the National Assembly yesterday (Dec. 15) and Dr. Douglas described the financials presented as “overestimated”, a “big fraud” and a budget of “deception”.
These comments came as he pointed to several figures in the Budget that he claimed does not add up, taking into account the state of the economic environment.
“Mr. Speaker, I want to say that in general the revenue estimates, they have failed us in several areas. Failed to take full account of the likely impact of the pandemic on economic activity in our Federation. It has failed us in not taking account of the fact that, notwithstanding the opening of our borders, the tourism sector continues to be in a state of devastation,” he lamented.
Dr. Douglas lashed out at the Government for its proposed increase in tax collection from small business, projecting an increase of more than six percent.
“...notwithstanding the brutal impact of the COVID-19 crisis on this segment of the economy, the small business sector, the Government is now proposing to increase collections of revenue from small businesses by some 6.23 percent? How is that going to happen? And we must bear in mind that the 2020 Estimates actually prepared before the start of the COVID-19 crisis,” Douglas claimed.
Citing data from the International Monetary Fund, the St. Kitts and Nevis Labour Party's Leader stated that economic growth would reach pre-COVID-19 levels during the course of 2021 or 2022.
He posited that even if the growth rate of five percent is achieved in 2021, it would not offset the double-digit economic blow that was attained by the onset of the COVID-19 pandemic.
“This would not entirely wipe out the economic contraction of 18.6 percent projected by the IMF,” noted Douglas.
When passed, the 2021 Budget is expected to stimulate a number of economic activities while, at the same time, providing a posture of assistance to the vulnerable groups in St. Kitts and Nevis that were impacted from the onset of the COVID-19 pandemic.
