What Budget?

What Budget? “Yesterday’s Budget will come to be remembered more for what it failed to do than what it delivered.” Mia Amor Mottley While Barbadians breathed a collective sigh of relief that the Prime Minister did not try to tax his way out of the recession, Opposition Leader Mia Amor Mottley made it very clear in her reply that having cited the problems affecting the economy, he then did nothing to resolve them.

For Barbadians who remember the horrors of the early nineties there was an awful sense of déjà vu about the Prime Minister’s presentation. Then as now, the country’s foreign reserves were of greatest concern. Miss Mottley pointed out that the foreign reserves had not yet reached the perilous state they were, in 1990/91, but if nothing were done to arrest the slide – then Barbadians would be staring harsh economic adjustments squarely in the face. She was of the view that Thompson would have to return to the House before the expiration of the current financial year to correct the problems that he refused to address in the Budget.

It was this delay that concerned Miss Mottley, given the history of 1991. Of greatest concern to her though is the announcement by the Prime Minister to run a primary fiscal surplus of 5.9% of GDP by 2011. The requirement to run this type of surplus is a prescription normally imposed by international lending agencies like the IMF and the World Bank and means that once more, like 1991, we would not hold our destiny in our own hands. It also means that a substantial chunk of any money we generate will have to be put aside to appease the moneylenders and will not be available for either social programmes, support for the private sector or projects that will expand our productive capacity. Effectively they will lend us the money, but tell us how we must spend it – repaying interest.

This remedy is precisely what could lead to social suffering and further economic hardship. Despite those who might advocate otherwise, Miss Mottley continues to offer the Government advice and solutions out of the mess it has generated around itself. As early as last year she cautioned that the large increase in energy prices and the Prime Minister’s $104 million tax grab would lead to an increase in prices and less money in people’s pockets. The advice was ignored. She advised then as well that that was the time to go to the international market for loans when money was still available and affordable. The advice was ignored.

She suggested floating a Stabilization Bond to support employment. The advice was ignored. She called for a Parliamentary Standing Committee on Finance and Economic Affairs in March so that the Opposition could assist the national effort. The advice was ignored. Now that the mess has hit the proverbial fan, the Prime Minister is pleading with the Opposition to join Team Barbados and put country ahead of partisan political interests. Calls for unity must never be disguised as a silence of criticism.

It is not a part of our Parliamentary or national experience. But have no fear; Miss Mottley and the Barbados Labour Party team will continue to show the Prime Minister and his side the error of his ways. She will continue to offer the government advice in the interest of Barbados and Barbadians, even when it is thrown back in her face with all the finesse of a gully boar. Who can forget the jeering from the government benches in the first Budget Debate: “You are not in Government now.” “We don’t want your advice.” She knows that Barbados deserves better. She knows that Barbados can do better. She knows that we can do better.