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PM announces economic stimulus

SHERRYLYN TOPPIN, [email protected]

PM announces economic stimulus

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With the Government of Barbados set to lose more than $450 million in revenue over the next year, Prime Minister Mia Mottley announced a $2 billion plan designed to stimulate business and provide relief for the most vulnerable over the next two years.

Mottley said in the wake of the COVID-19 pandemic, which has brought economic activity to a virtual standstill, the difference in what Barbados earns and what it spends “would initially worsen by near $700 million”, “without doing anything”.

She addressed the nation for almost two hours on Wednesday night and announced Barbados was moving from Phase 1 to 2 in the national recovery plan, with new measures being implemented. covid-19

Mottley said revenue will be down from income tax, corporation tax, Value Added Tax, excise tax, duties, fuel and air transport levies. Meanwhile, Government would have already spent more than $100 million on health, including the isolation and quarantine centres, new equipment and supplies (one ventilator costs about $100 000) and the National Insurance Scheme (NIS) will pay out $200 million in benefits.

Here are some of the measures in the stimulus package:


Finally, the Mottley said private sector projects to the tune of $800 million are still scheduled to go on stream this year. Next week, work should resume on Sam Lords Castle ($400 million), while 75 apartments are to be built at Crane Hotel and improvements to the Apes Hill Golf Course should cost $75 million.

Similarly, by the end of June, Government hopes the $60 million expansion of Sandals Dover, the Sagicor Retirement Villages project ($200 million) and the Hyatt Ziva ($400 million) in The City will have commenced, though demolition work on the latter may begin sooner. (SAT)


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