The unemployment rate at 9.0 per cent was a decrease of 1.2 percentage points compared with the same period in 2015
On Saturday, July 8, Minister of Labour Dr. Esther Byer Suckoo reiterated Government’s commitment to the tri-partite partnership while Minister of Commerce Donville Inniss dismissed a planned march by the major unions as being valuable only in terms of the members’ losing weight.
That shrinkage on the GDP, the economist seemed to be suggesting, could lead to less of the very tax revenues, most of which are from consumption, like the National Social Responsibility Levy and VAT, that the government is relying on to produce the taxes needed to reduce the deficit.
“You cannot tax your way back to growth,” Opposition Leader Mia Mottley told the House of Assembly on Wednesday, May 31, as she criticized Minister of Finance Chris Sinckler for budgetary proposals which she said were nothing but a “tax grab” that would fail to achieve the desired result of erasing the fiscal deficit.
The levy, which is expected to raise a total of $208 million in the present financial year as well as increase the revenue from VAT by $32 million, has been the subject of some confusion as to how it will be implemented.
Chamber president says Government intends to restructure state-operated enterprises so that they are financially viable, and “We fully expect that mergers, privatizations, private-public sector partnerships and the ease of doing business will become part of this narrative."
The commission found that parts of the Sale and Purchase Agreement were “inherently anticompetitive.”
Continued fiscal discipline, along with economic growth, was essential, and over the medium-term, further adjustment would be needed on the expenditure side to “decisively reduce debt and debt service costs."
Government spending now stands at just over one-third of the country’s GDP - 35.6 percent of GDP at the end of FY2016/17 - and there is little room to manoeuvre, says the IDB, because wages, salaries and interest payments combined account for almost half of the total amount spent.
The latest figure does not reflect the full increase of the levy to ten percent which started in May
Reforms of state-owned enterprises should include reduced services, mergers, closures, and privatization.
The Central Bank of Barbados says tax revenues increased by Bds$98.6 million, due in part, to a $48.8 million boost in receipts from the National Social Responsibility Levy and $46.4 million more from excise taxes.
She said the BLP was not waiting until it won an election to come up with a draft integrity bill. Over the past week, its spokesmen had been discussing it in the media and copies of the draft were now being sent to the social partners for discussion.
The new list was drafted by the European Council’s Code of Conduct (COC), a group comprised of finance ministers from EU member states, including the UK. Countries’ inclusion is based on whether a state gives preferential treatment to companies enabling them to move profits to avoid charges.
Minister of Finance Chris Sinckler said the Cabinet of Barbados had approved the appointment of Mr. Haynes to head that institution for a five-year period.
The outlook for the Barbadian economy remains challenging, and “decisive stabilisation measures” are needed to place Barbados’ public finances on a sustainable path,” Governor of the Central Bank of Barbados, Cleviston Haynes said on Wednesday, May 2. Delivering the bank’s review of the economy for the first quarter of 2018, Mr. Haynes noted that “Our efforts to date have not resulted in bringing the fiscal deficit to a manageable level,” and the current borrowing requirement for fiscal year 2018/2019 therefore needed to be reduced.
Calls to refinance the national debt, sell-off state-owned enterprises, make Barbados much more attractive to investors, and perhaps even devalue the Barbados dollar were among suggestions either made or hinted at by presenters on Wednesday, May 9 at the Lloyd Erskine Sandiford Centre when a panel discussion on the topic “The Path Back to Prosperity”, was held by the Barbados Employers Confederation.
The total revised estimate of revenue for the fiscal year now ending is Bds$2.862 B, and for the coming fiscal year it is $3.164 B.
In its BERT presentation made soon after taking office last year, the Mottley administration said it would reduce total expenditure by about $100 million by the end of FY2018/19 (which ended March 31) and by the same amount during this financial year.
We shouldn’t think the government is cutting $1.3 Billion from expenditure without mentioning the billion dollar part about debt service,
According to the BGIS, Mr. Carrington stated that the IMF tax officials were currently on the island examining various taxes,.
In fiscal terms, the government plans to bring in just over $300 million in additional tax revenue.
Despite the gains made from essentially spending less and bringing in more, economic activity remained subdued compared to the first quarter of 2018.
The IMF staff team thinks the budget for the current fiscal year provides “a strong basis for the targeted fiscal consolidation,”
The lobby group said that, instead, the Government of Barbados had released so-called “restructuring scenarios” that ignored its suggestions during negotiations over the past several months.