Government still has to cut its deficit by a further $174.6 million between now and the end of March if it is to reach its fiscal targets.
Central Bank Governor Dr DeLisle Worrell, in yesterday’s third quarter economic review released by the bank, said while the deficit had been reduced by $77 million between April and last month and the measures were “projected” to yield an additional $123.9 million in the remaining six months of the 2014/2015 financial year, further revenue enhancement and expenditure adjustment were “required in the second half of the fiscal year to bring us to the target deficit of 6.6 per cent of GDP [$565 million]”.
And in immediate reaction, economist Professor Michael Howard said Government could not impose further taxation so its only alternative was to borrow money to meet its fiscal target.
Opposition spokesman on the economy, Dr Clyde Mascoll, said it was a clear sign that the Freundel Stuart administration’s fiscal policies had failed miserably. (SC/TS/SP)
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