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GERALYN EDWARD, [email protected]

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A REGIONAL ECONOMIST says Government may have no choice but to cut the number of people working in the public sector and state-owned enterprises.

Marla Dukharan, group economist with the Royal Bank of Canada (RBC), in her last Caribbean Economic Report on the state of regional economies contended: “Whether there could be a reduction in public sector headcount or salaries depends largely on the legal restrictions, but it may be more prudent to opt for a reduction in salaries rather than a reduction in headcount, if at all possible. Lay-offs carry severance costs, and could also impact unemployment and poverty levels more severely than a wage cut.”

Loss-making state-owned enterprises, Dukharan said, represented a big drain on the budget, which was unsustainable.

Leasing these to private operators could help to boost efficiency and output, she assessed. (GE)

Please read the full story in today’s Saturday Sun, or in the eNATION edition.