GOVERNMENT IS HAVING a hard time meeting its fiscal targets despite an increased value added tax (VAT) rate and restraint in discretional spending.
The Central Bank of Barbados, in its six-month economic review released yesterday, said that business profitability had not yet recovered and corporate tax receipts had fallen short of expectations.
The report, which drew immediate reactions from both Minister of Finance Chris Sinckler an Opposition Leader Owen Arthur, also estimated the country’s fiscal deficit at 8.7 per cent of gross domestic product (GDP) compared with 8.9 per cent in the previous fiscal year.
In the first two months of fiscal year 2011-2012, the Central Bank said the deficit dropped from 5.9 per cent in April and May 2010 to 4.1 per cent. (NB)
Full story in today’s MIDWEEK NATION.