Fiscal figures misleading, says Arnhim Eustace

Leader of the Opposition Arnhim Eustace is of the opinion that the only reason why there was an improvement in the fiscal outturn for the first four months of this year is because the Unity Labour Party (ULP) led government has not made all the payments that it should have.{{more}}

Eustace articulated this position on Monday, June 4 during the New Times radio program and followed up on the question he put to Prime Minister and Minister of Finance Dr Ralph Gonsalves during the last session of Parliament on Thursday, May 31.

“The deficit had fallen, because he didn’t make certain payments that he should have made,” Eustace contended.

“If he had made those payments, like those to the private sector and so on, which ought to have been made, it would have been wider,” the Leader of the Opposition continued.

According to Eustace, not spending something which was owed does not solve the deficit problem.

“So, let’s not fool the public on that,” he said, adding that he was of the opinion that the prime minister recognized that he was fooling the public.

“He said ‘one swallow does not a summer make’; that means if it appears to look better for one month it doesn’t mean it will always be that way. But I think he recognizes that and that is why he made that statement,” Eustace contended.

During the question and answer segment of Parliamentary sitting of May 31, Eustace asked the Prime Minister to give an update of the country’s fiscal situation, to which he (Gonsalves) responded that the fiscal situation for the first four months of the year, when compared to last year, had improved.

“But I want to reduce the force of that statement by saying it is still a challenging situation and we are not out of the woods,” the Prime Minister said.

According to the Prime Minister, the total revenue and grants for the first four months of the year was $152.4 million compared to $144.7 million, in 2011.

The current revenue was $148.3 million in 2012, compared to $142.6 in 2011; the total expenditure was $159.3 in 2012 and $176 million in 2011; recurrent expenditure was $157.6 million (2012) and $172.6 million in 2011.

There was a deficit of $9.26 million in 2012, compared to $29.9 million in 2011; and a $6.89 million deficit in the overall balance for 2012, compared to $31.3 million during the corresponding period last year. (DD)