Opposition worried over growing debt

St Vincent and the Grenadines owes $1.06 billion and Opposition leader, Arnhim Eustace is concerned that “our debt is growing”.

He referred to the International Monetary Fund’s 2004 report which suggested that St Vincent and the Grenadines’ growth rate will continually decline to under two percent in 2010.{{more}}

“Our national debt is fiscally detrimental,” Eustace said.

He said that if St Vincent and the Grenadines is to experience long term growth and stability then serious fiscal prudence is critical.

He challenged the Government to reexamine the allocations to certain segments of the economy in an effort to stem the debt growth.

Eustace also chided the ULP Government for venturing above the $40 million overdraft limit granted by Parliament.

He quoted figures that indicated that as of September this year the Government’s overdraft was $56 million, which is $16 million above the limit.

He further indicated that the total overdraft that the Government, when its statutory bodies are included, owed to the banking system, was $71 million.