Seeing light

Central Bank governor says govt’s fiscal measures are working

Government’s retrenchment of thousands of public sector employees has put an estimated $20 million back into the Treasury and the Central Bank of Barbados is saying that the fiscal adjustment measures under which the job cuts were made, appear to be working.

However, Central Bank Governor Dr Delisle Worrell said today that unemployment has been rising because of the ongoing retrenchment programme.

Reporting on the current state of the economy, Dr Worrell told the country that even though the average rate of unemployment over the four quarters ending March was 11.7 per cent and slightly higher than the previous year, the fiscal adjustment measures taken by the Freundel Stuart administration between August 2013 and March this year, seem to have started to restore the balance of infows and outflows of foreign exchange.

Dr Worrell also said that the foreign reserve trends for the first six month of the year had reverted to the pattern of the years from 2009 to 2012.

“Reserves declined by $51 million, compared to a fall of $119 million on average for those years.  At the end of June, the stock of reserves stood at $1,093 million, representing 15.1 weeks of import reserve cover,” the Central Bank Governor added.

He also announced that the fiscal adjustment measures had dampened the demand for imports, resulting in them falling by 1.4 per cent for the first half of this year.

“The Fiscal Consolidation Programme yielded an estimated $51 million in the first quarter of the fiscal year.  The Consolidation Tax brought in $9 million, and the tax on commercial bank assets $4 million,” Dr Worrell noted.

He revealed that grants to pubic institutions were also reduced by $9 million and outlays on goods and services declined by $9 million.

The bank head also disclosed that the overall deficit was down as well.

“The overall deficit for the first quarter was $214 million, $5 million lower than for the same period last year.  The primary deficit for the quarter improved by $30 million to $21 million,” he stated.


13 Responses to Seeing light

  1. Veroniva Boyce
    Veroniva Boyce July 16, 2014 at 1:44 am

    I hope he did not pick the figures out of the sky.

  2. Cecily Jones
    Cecily Jones July 16, 2014 at 5:31 am

    Perhaps some of that money can be used to pay the retrenched workers their severance pay? Many people are still waiting for it!

  3. Santini More
    Santini More July 16, 2014 at 5:54 am

    Dubious figures from a dubious Central Bank Governor.

  4. Wayne T Griffith
    Wayne T Griffith July 16, 2014 at 6:34 am

    Money in the treasury but out of NIS for unemployment benefits.

  5. Fabian Dottin
    Fabian Dottin July 16, 2014 at 7:01 am

    Dat light is just a firefly in da tunnel wid us

  6. Janette Reifer
    Janette Reifer July 16, 2014 at 7:01 am

    He does make me laugh, seriously ! He needs to retire. Poor man ! He must be weary mentally. Sir ! No disrespect to you but I think it time for you to retire. You have served your time, and this stress is wearing down you. It can be notice. It time you say enough, is enough and good bye to the stress.

  7. Ryan Bayne
    Ryan Bayne July 16, 2014 at 7:44 am

    When I heard the news last night I just shook my head because I couldn’t believe the prophesy of gloom and doom this man keep predicting every now and then and yet no conference. Time to pack it in and let someone with proper brains and understanding of economy take over and hopefully we will be smooth sailing.

  8. Carolyn Robertson
    Carolyn Robertson July 16, 2014 at 7:56 am

    when we see it we will embrace it

  9. Miguel Carlos Jose Humphrey
    Miguel Carlos Jose Humphrey July 16, 2014 at 8:06 am

    The Gov. needs him to show us that they are doing something good, and with our money besides licking or eating it out.

  10. Sanderson Rowe July 16, 2014 at 10:23 am

    In other words , it looks like Al Barak owns this country by default.

  11. Angel OfThunder
    Angel OfThunder July 16, 2014 at 1:34 pm

    Please where the $$$$ coming from out the sky,any person knows that it takes a big work force to bring in $$$$$ if the government send home 5000 of it’s workers were this $$$$$ coming from??not in Barbados u getting outside help……

  12. Daniel Polonis
    Daniel Polonis July 16, 2014 at 1:35 pm

    That light we the gaping hole at the end of the tunnel where the sewage runs into the ocean.

  13. Bernard Walker
    Bernard Walker July 16, 2014 at 3:33 pm



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