THE?GOVERNMENT is, without the slightest doubt, elated; the Opposition is not.
Minister of Finance Chris Sinckler and his Government lead economic planners are over the moon with revised figures that show the Barbados economy did grow by 0.3 per cent at the end of last year, instead of contracting by 0.4 as believed earlier.
Clyde Mascoll, lead economic spokesman for the Opposition Barbados Labour Party (BLP), while understanding of Mr Sinckler’s elation, since in the present environment anything positive, no matter how “paltry”, is good news, is not that impressed.
As far as Mr Mascoll is concerned, the Government’s revised economic projection of 2.5 per cent growth – from the earlier two per cent – will still be inadequate to close the Government’s $540 million deficit on current account.
Given the Opposition’s strong condemnation of Mr Sinckler’s handling of the Government’s Finance portfolio, shared exuberance over the minister’s latest findings is at worst unlikely.
At best, one may expect Opposition Leader Owen Arthur and Mr Mascoll to be quite cautiously optimistic.
They won’t be counting any chickens before they are hatched.
Not counting one’s brood beforehand might be a wise practice for Mr Sinckler to adopt at this time. No sooner than the minister learns of the economic revisions he is confident of continued improvement by Barbados.
We are not oblivious to the benefits of positive thinking, but we believe the state of the world’s economy – and by inclusion ours – calls for more.
Excited by the significant increases in tourist arrivals in January from nearly all markets, including the British, and a reported increase in VAT receipts in December to January, Mr Sinckler has begun to see a rosier picture than most.
And when this is added to Mr Sinckler’s declared contraction in Government spending, we understand why the minister thinks we should all embrace his blissfulness. But we caution temperance.
Already the Minister of Finance is considering relief to thousands hit hard by his new taxes on previously tax-free travel and entertainment allowances – an imposition that perhaps needed not have been in the first place.
Political decisions are not always rooted in sound fiscal determinations.
So while we as a nation of hard-working citizens long for some respite, at least, from the clutches of the global recession, we still hope for sustainability in any relief our Government will present us.
Today’s words must be caution and good sense.