$51m in 3 months
Government’s austerity programme is causing real pain for some Barbadians, but the Central Bank says the measures are allowing the island to creep out of more than five years of flat or no growth.
As Central Bank Governor Dr DeLisle Worrell yesterday released the much anticipated half-year review of the economy amidst increasing discontent about high taxes, he said the fiscal consolidation programme produced $51 million in the first three months of this year alone.
Of that amount, the consolidation tax on workers’ incomes pulled in $9 million, the tax on commercial bank assets brought $4 million into the Treasury, while public sector job cuts slashed $20 million off Government’s wages bill.
Government’s overall deficit was lowered by $5 million, the Central Bank said.
Worrell, who is a key advisor to the administration, said in his latest economic report: “The fiscal adjustment measures taken by the Barbados Government between August 2013 and March this year appear to have begun to restore the balance of inflows and outflows of foreign exchange, and the foreign exchange reserve trends for the first six months of the year reverted to the pattern of the years from 2009 and 2012.”