The Budget speech of the Minister of Finance in any democratic country is serious business. The minister has the responsibility of looking after the soundness of the economy, and keeping the country safe through the perils of economic turbulence from time to time.
In some ways, he is like the pilot of an aircraft. He has to get it right from take-off to landing. As in an aircraft the broad flight plan is important but so are the details, because it is by getting the details right that the aircraft can become airborne and achieve its purpose.
It is a little disturbing to hear that some of the details in the last Budget are now being said, or shown, to be errors of substance and detail.
We are not talking here of interpretation by those with partisan or point scoring objectives. Were that the case we could note those comments and move on, politics being what it is.
But in this case no less an authority than the Minister of Industry Donville Inniss has told us that the solid waste tax of 0.7 per cent on the non-improved value of land announced in the Budget was entered in error. In making this statement, Inniss said authorities were now making a review and that the matter was being addressed.
Accepting Mr Inniss’ word is not the problem, except that he is not the substantive minister. The problem is that it was necessary to make the statement in the first place, because these are the kinds of details that the pilot checks, once and again, before take-off to ensure a safe and successful flight. Anyway, it ought not to be too difficult to state the correct rate since the right figure must have been known, before the budget, for the incorrect figure to have been entered in error.
The stabilization tax was also announced in the Budget, and this too has had a hiccup. The Budget speech announced the rates and the tax bands applicable to this tax; but the full page advertisement by the Inland Revenue now informs employers of different rates of tax applicable to two of the higher bands of salaries subject to the new tax.
We know that it is human to err, but errors of substance, and these are such errors, can undermine confidence, and that is not what we need at this stage.
Moreover, since it is the Minister of Finance’s word, (and no other) that makes the Budget instant law, serious problems can arise whenever there are what appear to be errors of substance, for questions may arise as to the correct rates in law.
Above all, budgets are meant to provide the wicket on which businesses can bat, and if they cannot read the wicket for this reason or that, growth is not likely to occur. Or to stick to the cricketing jargon, they may not be able to score runs and make profits.
We have previously urged all Barbadians to get on board and help to pull us to safety, but the very confidence of which the minister spoke at the beginning of his speech is critical and can be shaken when errors occur. We urge speedy correction of the errors so we can move full steam ahead with all on board.
