• Today
    December 15

  • 04:10 AM

Govt and Barbadians must cut spending, says Haynes

SHAWN CUMBERBATCH, shawncumberbatch@nationnews.com

Added 01 February 2018


Fielding questions from the media were (from left) Central Bank public affairs officer Novaline Brewster, Governor Cleviston Haynes and his deputy Michelle Doyle-Lowe. (Picture by Reco Moore.)

THE CENTRAL BANK is warning that Government and Barbadians have to tighten their belts even more.

With the economy struggling to grow and the fiscal deficit and debt still major worries, Governor Cleviston Haynes yesterday said “we need to strengthen the adjustment effort to reduce the fiscal balance to a sustainable level, facilitate a reduction in the debt to GDP ratio over time, and engender the investor confidence required for promoting acceleration in economic activity over the medium term”.

In other words, Haynes told the media during his 2017 review Press conference, that raising revenue through increased taxation would not suffice, so spending cuts were urgently needed.

Government last introduced austerity measures, including an increase in the controversial National Social Responsibility Levy, in July 2017.


Gains eroded


However, Haynes said even though the fiscal deficit fell by $197 million during the first nine months of last year, these gains were partly eroded by “the result of the granting of exemptions from the incidence of the new taxes on specific goods and services”.

There was also concern that despite repeated calls for fiscal discipline, Government increased its financial support to statutory bodies and other state entities.

“I think everyone agrees that in order to bring the fiscal [deficit] into a long-term sustainable approach, we have to address the expenditure side of Government,” the veteran economist said.

“We have in the short term enacted a number of revenue measures, which though not generating as much revenue as was originally forecast, they are starting to bear some fruit, but if we want to address the fiscal problem sustainably, we have to look at the expenditure side.” (SC)


Dos and Donts

Welcome to our discussion forum here on nationnews.com. We encourage lively debate, but we also urge you to take note of the following:

  • Stay on topic – This helps keep the thread focused on the discussion at hand. If you would like to discuss another topic, look for a relevant article.
  • Be respectful – Meeting differences of opinion with civil discussion encourages multiple perspectives and a positive commenting environment.
  • Do not type in capitals – In addition to being considered “shouting” it is also difficult to read.
  • All comments will be moderated – Given the volume of comments each day, this may take some time. So please be patient.
  • We reserve the right to remove comments – Comments that we find to be abusive, spam, libellous, hateful, off-topic or harassing may be removed.
  • Reproduction of comments – Some of your comments may be reproduced on the website or in our daily newspapers. We will use the handle, not your email address.
  • Do not advertise – Please contact our Advertising Department.
  • Contact our Online Editor if you have questions or concerns.
  • Read our full Commenting Policy and Terms of Use.
comments powered by Disqus


The public service vehicle community is upset over new uniforms provided by the Transport Authority. Do you think the new uniforms are a good idea?