The House of Assembly meets tomorrow in what seems certain to be its last sitting of this year. The significance in this is that the Lower Chamber will go into its Christmas recess without having debated the Financial Statement and Budgetary Proposals, familiarly known as the Budget, an annual presentation.
Given the extended period devoted to the outlining of the Budget, the reply, discussion and wrap-up, it is obvious it cannot be done this week. Next week the focus and attention of most Barbadians, despite the economic strictures, will be on the celebration of Christmas.
This will be the first time for many years that no such presentation has been delivered. The merits or demerits of the extended debate which accompanies the presentation is open for discussion.
It has been often stated that the Estimates of Revenue and Expenditure, which will be presented and debated before the end of Government’s financial year in March, is considered “the real Budget”. With many Government departments and agencies in full preparation of the 2015-2016 Estimates, there is little need at this stage to return to the legislature to raise additional taxes.
The public, both individual and corporate, has in unison already been complaining about the high level of to end 2014.
Government’s emphasis must be on reducing expenditure and being much more efficient in its operations.
Since we will have no Budget presentation, Minister of Finance Chris Sinckler will most likely deliver a Ministerial Statement which should give some update on the state of the economy. There are many issues and concerns which he needs to address.
Whether the Accountant General’s Department is on top of knowing exactly how much money Government is collecting and paying out on a daily basis is something which must be made clear. From afar, the feeling is that the numbers are not adding up.
Despite the high levels of taxation, Government still owes too many people for way too long – from suppliers to disgruntled taxpayers awaiting their refunds. By not paying its bills, especially to businesses which have provided goods and services, Government has occasioned hardship on some of these operations. Many of these businesses no longer enjoy extended credit facilities from their suppliers and are burdened with paying overdrafts to stay afloat.
With world oil prices dropping, indications of a positive 2014-2015 winter tourism season and reports of interest from foreign direct investors, Mr Sinckler needs to be blunt on what is happening with Government’s efforts to rein in its expenditure, including efforts to shed some parastatals and companies.
Barbados needs to return to positive economic growth if it is to maintain a strong society. You have one choice, Mr Sinckler: deliver the goods.