Searchlight Logo
special_image

    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
January 26, 2018

The Budget realities

Over the next few weeks, attention will be focused on what the Budget has in store for the country. The IMF 2017 Article IV Consultation will undoubtedly provide the framework that will inform and guide the Budget. The press release put out by the IMF on December 18 does not offer a lot of hope for us. As is to be expected, it looked at prevailing trends and made recommendations on the assumption that several things will be put in place to facilitate economic advancement. In SVG, as we know by now, politics intrudes into everything and things happen not because they are in the best interest of the economic development of the country, but that they are politically correct. One wonders if the architects of these prescriptions understand fully the dynamics of these countries, the pace at which things move and our ability to implement policies agreed on.

For workers in the country, the warning is clear. It states, “Containing the wage bill and curbing the growth of public pensions should be key pillars of the fiscal consolidation strategy.” This will, of course, be of concern to workers and will feed the debate that is ongoing about public pensions. Our new airport is supposed to be part of the launching pad for economic take-off, but the report warns that “the operating losses at the state owned- and -run airport needs to be addressed.” The question is how? We hope to see how this will be factored into the overall economic package. As the authors of the report look at medium-term growth, they are hoping for “strong spill overs from the new airport”, the proposed construction of a modern port and the launching of the geothermal project. Added to this will be the benefits of “improved connectivity” and the expected reopening of the Buccament hotel. Now, I am not aware of any airport in the region, much less a new one, being able to cover its operating costs. We will look to see what is likely to happen for the rest of the tourist season, since those who have so far taken advantage of “improved connectivity” are mostly Vincentians returning home on holidays. Is the geothermal project going to be a reality in the short term? Additionally, is the expected reopening of the hotel likely to be realized in 2018, given the fact that it is heavily tied up in court?  There isn’t much hope for a reduction in public debt. Instead, “under current policies,” it is expected to continue to rise “from its already high level”. It suggests too, the “swift execution” of a World Bank Project “to reorient the (agricultural) section from subsistence to agribusiness and strengthen its links to tourism…”  In all of this, it is expected that there will be a decline in current account deficit “as food imports diminish and tourism takes off”. Diminishing of food imports! How long have we been talking about this? Just accept that it is not going to happen soon. Furthermore, is our tourism infrastructure at the level that will allow it to take off?

The expectations of the IMF represent a tall order. Is our public service so structured to take up the challenges being presented to it? Expect that politics will get in the way and decisions will continue to be made based on politics, rather than on sound economics.  The IMF prescriptions will bear little fruit, since, in the final analysis, it fails to understand the realities of the country and the state of play. Furthermore, one of the issues that we have not sufficiently addressed is the reliability of our statistics that feed the analysis and inform the recommendations.

Dr Adrian Fraser is a social commentator and historian.

  • FacebookComments
  • ALSO IN THE NEWS
    Domestic worker killed at Long Wall
    Front Page
    Domestic worker killed at Long Wall
    Webmaster 
    September 12, 2025
    FAMILY MEMBERS of a woman who was killed at Long Wall say they suspect their relative was hacked by a person they all know very well. On Tuesday, Sept...
    Front Page
    NDP never built a single house in SVG – Finance Minister
    Webmaster 
    September 12, 2025
    THE IDEA THAT HOUSING is a right, that every Vincentian has a right to safe and secure housing, and that the government has a role to play in ensuring...
    No bail for Police officer charged with attempted murder
    Front Page
    No bail for Police officer charged with attempted murder
    Webmaster 
    September 12, 2025
    A POLICE OFFICER, who allegedly stabbed his ex-girlfriend 26 times about her body was remanded even as his lawyer argued that the Royal St Vincent and...
    Front Page
    New ULP Administration will roll out AI policy
    Webmaster 
    September 12, 2025
    A NEW UNITY LABOUR PARTY ADMINISTRATION will be rolling out an Artificial Intelligence (AI) policy to embrace its positives and guard against the nega...
    Sandy Bay Secondary School marks 20th Anniversery
    Front Page
    Sandy Bay Secondary School marks 20th Anniversery
    Webmaster 
    September 12, 2025
    TUESDAY, SEPTEMBER, 9,2025 was a memorable day for the staff and students of the Sandy Bay Secondary School, which was marking its 20th anniversary wi...
    Foundation implements community driven project in SVG
    News
    Foundation implements community driven project in SVG
    Webmaster 
    September 12, 2025
    THE ASHLEY LASHLEY Foundation, with support from the United States Government, is implementing a local-level project entitled “Community-Driven Strate...
    News
    Foundation implements community driven project in SVG
    News
    Foundation implements community driven project in SVG
    Webmaster 
    September 12, 2025
    THE ASHLEY LASHLEY Foundation, with support from the United States Government, is implementing a local-level project entitled “Community-Driven Strate...
    Skills not available locally, non-nationals have to be hired says Finance Minister
    News
    Skills not available locally, non-nationals have to be hired says Finance Minister
    Webmaster 
    September 12, 2025
    NON- NATIONALS ARE being hired to fill several jobs in St Vincent and the Grenadines (SVG) simply because locals did not have the required skill sets....
    Montgomery Daniel squashes rumours that he’s sick
    News
    Montgomery Daniel squashes rumours that he’s sick
    Webmaster 
    September 12, 2025
    DEPUTY PRIME MINISTER Montgomery Daniel has sought to clear around rumours that have been circulating relating to his health. Speaking on NBC radio on...
    News
    $1.3 billion in Tourism investment to yield 2,000 jobs – Camillo
    Webmaster 
    September 12, 2025
    The GOVERNMENT of St Vincent and the Grenadines is set to sign agreements for tourism investment of $1.3 billion on mainland St.Vincent. On Monday, Se...
    Bagga’ man pleads guilty to illegal gun, ammo possession
    From the Courts, News
    Bagga’ man pleads guilty to illegal gun, ammo possession
    Webmaster 
    September 12, 2025
    A BARROUALLIE MAN will be sentenced next week after pleading guilty to being in illegal possession of a firearm and eight rounds of ammunition. Demron...

    E-EDITION
    ePaper
    google_play
    app_store
    Subscribe Now
    • Interactive Media Ltd. • P.O. Box 152 • Kingstown • St. Vincent and the Grenadines • Phone: 784-456-1558 © Copyright Interactive Media Ltd.. All rights reserved.
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok