The 2013 Financial Statements and Budgetary Proposals did not address the concerns of those in the small and medium-sized enterprises sector (SME), says economist Clyde Mascoll.
He made the assessment recently during a Small Business Association (SBA) meeting on the topic Budget 2013: What Is In It For SMEs? The town hall-style meeting was held at Pelican Village.
Mascoll said there were four major economic concerns that needed urgent attention but the budget laid recently by Minister of Finance Christopher Sinckler did not address them.
“Those concerns are one, the need to resuscitate economic growth in Barbados. That is the main thing. Two, the need to sustain employment; three, the need to put more disposable income in the hands of ordinary Barbadians and four, the question of earning foreign exchange to ensure that our economy can be sustained,” Mascoll said. “Given the current budget for 2013 do not expect any growth in the economy.”
Saying the budget had identified a 19-month period for “correction”, Mascoll said it was “not conceivable” that the budget would trigger economic expansion because the Government would be “extracting disposable income and stopping people from spending”.
He said that based on data from the Barbados Statistical Service it was estimated that the small business sector accounted for “between 12 and 15 per cent” of the total economy, or approximately $1.1 billion per year.
“Therefore there are implications for you,” he told the audience. “Once there is a reduction in disposable income you are going to hurt even more than the [larger businesses].”
Minister of Housing and Lands Denis Kellman said Barbadians should be supporting the sector by purchasing locally produced items.
“The truth is we have to start supporting each other,” said Kellman.
Kellman said it was important to have more discussions on moving the sector forward, adding that he was “always willing to discuss issues because the more you talk and discuss, the more you can solve problems”. (MM)