More adjustments coming, warns Governor

By next week Barbadians could know what additional measures the Government will be implementing to achieve a reduction in its fiscal deficit.

Governor of the Central of Barbados Dr DeLisle Worrell made the revelation as he addressed the luncheon of the Barbados Association of Professional Engineers (BAPE) at the Savannah Beach Hotel today.

Worrell said the medium term fiscal strategy was working but warned that additional measures were needed to bring the deficit down “in the second half of the fiscal year” to a “comfortable” level going forward.

Dr. Delisle Worrell
Dr. Delisle Worrell

“So the process of fiscal adjustment is an ongoing process. But here on in is going to be a structural process accompanied by real reform of the Government services. A reform which is going to bring greater efficiencies in the delivery of those services,” said Worrell.

“But there is also another two per cent or so of GDP that still has to be found in terms of further adjustments and I believe that the Minister of Finance [Chris Sinckler] is going to address    that next week.”

In relation to the national debt, the Central Bank Governor said a lot had been said about it “and most of it is unnecessarily alarmist”, adding that “the notion” that it was too high was “ridiculous”.

“The thing we have to worry about in this country is foreign exchange and the debt that can blow us off course is the foreign debt. And as far as the foreign debt is concerned we are in a very comfortable place,” said Worrell, adding that it cost the Government “about six to seven per cent of what we earned in foreign exchange” this year to service that external debt.

Though admitting that the domestic interest was “quite large”, Worrell said “it doesn’t matter how many economists  and with how many PhDs get up and tell you that it is a problem. He argued it was not since the debt “is owed to Barbadians and it provides an investment opportunity for Barbadians”.

“We have good prospects. It is not an overnight thing. We have the appropriate policies and I always issue an invitation to all and sundry if you have better ideas please share them. And we are open to all constructive ideas,” he said.

However, the Governor insisted that devaluation and debt restructuring did not make sense for Barbados.

“Anything else we are prepared to consider,” he added.

The economist also suggested that inefficiencies in the public sector could be contributing to the low payment of taxes to Government.

“There is no question that we do not have a 21st century public sector. There is no question [about the] level of inefficiency within the public sector,” the Governor said, adding that “people wouldn’t have a difficulty in paying the taxes they pay if they were getting first class service for those payments. They would still complain but they would pay the taxes. It would be acceptable but it is because of the inefficiencies. That message is a message for my colleagues in the public service,”  Worrell said.

10 Responses to More adjustments coming, warns Governor

  1. Matthew Greaves
    Matthew Greaves November 26, 2014 at 12:57 am

    omg more trouble now

  2. Cheryl A Rollins
    Cheryl A Rollins November 26, 2014 at 4:33 am

    Is it just me or this man needs to retire and go to hell home. As for the MOF he gives reason that he sat at the back of the class inattentive. SMH!!!!

  3. Tête La
    Tête La November 26, 2014 at 5:31 am

    This is what people get for acting “licorish & hand-to-mouth” during a General Election… All of this and these people could have been avoided

  4. Colin Daniel November 26, 2014 at 7:59 am

    Honestly, did he really say debt restructuring did not make sense. When 31% of revenue is going to interest and another 30% is going to capital repayment and he does not understand this picture. This is the Central Bank Governor – can we please have a person who has a better understanding of our situation at the top. So I guess his plan is to attempt to raise revenue to a level where debt service does not consume 61% of our revenue. He aims to do this while cutting aggregate demand and employment levels. Why is he still here?

  5. Olivia Doobay
    Olivia Doobay November 26, 2014 at 8:24 am

    Oh wow…MORE TAXES!!!

  6. Asiba November 26, 2014 at 9:55 am

    All other things aside, the Public Service has to be more efficient.
    Public service employees must be treated well but Heads of Departments, many of whom seem to be more anti worker and anti progressive than anything else. People need to “CARE” more about their jobs, the country Barbados and the next generation. Lets all enhance what we do at all levels and strive for excellence always

  7. Harry Turnover November 26, 2014 at 10:02 am

    More lies ,pretty talk and a lot of sweet talk about how this and that will work and all that jazz coming next week as more people will be called upon to pay more taxes.
    Six or seven months he will be back to tell Bajans that those methods didn’t work,and more adjustments will have to be made,and this will go on and on until the next election is called.
    Heard that the RE INTRODUCTION of School fees is around the corner.

  8. Sam Clarke November 26, 2014 at 12:47 pm

    Lord have mercy pon Bim. The Economic sorcerer is at it again.


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