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IMF: Govt must reduce spending for Phase Two

SHAWN CUMBERBATCH, [email protected]

IMF: Govt must reduce spending for Phase Two

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The International Monetary Fund (IMF) is expecting Government to introduce major spending cuts as part of a second phase of austerity measures.

On Friday, one day after its team led by Dr Bert Van Selm ended a visit to Barbados, the IMF said the June 11 Mini-Budget was “a decisive step in the right direction” but more was needed.

“Consistent with the message delivered by the Prime Minister and Minister of Finance during the Budget, a second phase of measures will be needed to achieve this target,” the IMF said in a statement reporting on its latest mission here.

“This next phase will focus on reducing expenditures – notably by improving the efficiency and effectiveness of public services, reducing Government transfers to state-owned enterprises by reviewing user fees, exploring options for mergers, and providing stronger oversight.” (SC)

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