Gonsalves optimistic, Eustace not very hopeful

Next Monday, a large budget will be presented to Vincentians, but despite the size, Prime Minister Dr.Ralph Gonsalves has expressed optimism that it will be manageable.{{more}}

On the other hand, the Opposition is adamant that with Estimates for the fiscal year 2010, standing at a figure of EC$913.47 million, Government doesn’t have the money to sustain the programme.

Making his presentation on Tuesday, January 19, 2010, at the House of Assembly, Kingstown, Gonsalves pinpointed several initiatives that his administration will be executing this year, as well as increased expenditure in some areas, as the main reasons for the size of the Estimates.

“While this is a large increase …it is not at all unmanageable,” said the prime minister.

The initiatives, which will be employed, are absolutely necessary in the circumstances, said Gonsalves.

The main beneficiaries from the 2010 budget are likely to be teachers, police officers, nurses and other public servants, students, as well as persons identified as less fortunate in the society.

While Gonsalves paints a picture of optimism, Leader of the Opposition and President of the New Democratic Party (NDP) Arnhim Eustace is not very hopeful.

The Opposition Leader told the nation that he has been in the House since 1998 and to date, this is the worst Estimates that he had ever heard.

He questioned whether the state has the financial capacity in the current economic climate to sustain the Estimates.

Eustace was supported by Vice President of the NDP, Senator St. Clair Leacock, who claimed that further investigations will have to be done to see whether the government is using the Estimates to electioneer, as General Elections in St.Vincent and the Grenadines are constitutionally due by March 2011.

Outlining programmes that will take effect this year, Gonsalves said: EC$12.5 million has been allocated for university training; over 70 graduate teachers will be employed to boost the standard of education in the primary school and early education systems; more police officers will be recruited; salaries for public servants will be increased by three per cent with two per cent retroactive; a crisis centre will be established to provide shelter for victims of domestic violence; and support will be provided to students, targeting those with behavioural and learning challenges.

The prime minister also promised funds will be allocated to set up a new Oxygen Supply Plant; establish a Banana Services Unit to undertake some of the activities carried out by the now defunct Banana Growers Association; and operations will commence at the new medical complex at Georgetown. He added funds of EC$40 million will channeled towards creating a financial stabilization programme which will see the setting up of a company to replace the failed British American Insurance.

These initiatives, said Gonsalves, contributed towards increasing the Estimates by 20.5 per cent or EC$120.5 million when compared to the total expenditure estimates for 2009.

The Recurrent Expenditure, inclusive of amortization amounts to EC$611.17 million. This figure is EC$54.72 million dollars or 9.9 per cent over the recurrent expenditure for 2009.

Gonsalves noted that the Capital Expenditure for the year will be EC$303.30 million. This represents an increase of 53.7 per cent or EC$105.9 million over the Capital Budget of 2009.

Taxes continue to be the main source of revenue. In 2010 this will account for EC$114 million.

Another interesting feature of the Estimates was the provision of EC$237 million for wages and salaries.

Gonsalves said while he is prudent with the state’s purse seeing that the country is coming out of a recession, he is creating new opportunities. He explained that he was quite flexible in designing the Estimates, cutting back in some areas and spending more in other.

While the prime minister was delivering the estimates, NDP supporters were staging a protest outside the House of Assembly, calling for the prime minister’s resignation.