The importance of prioritization and frugal spending

Dec 01, 2016 Letters

Dear Editor,
With a budget comprising such a high percentage of the money we make (Gross Domestic Product or GDP) as a nation. It is important that the projects we undertake are cost efficient, pay for themselves and support our overall strategy. In recent weeks we have rightfully constructed an Arch for the 50th Anniversary however, the cost was $20M dollars. That is a sum which in conservative estimates is overpriced and could be utilized to construct a homeless shelter for those affected in the Capital. Such a shelter would aid in the tourism push underway, as the esthetics of the capital are also important in this venture.
Given a budget which utilizes such a large amount of wealth of the nation, there should also be increased transparency on government projects. These projects should be capped by a standard profit margin for contractors so as to improve cost control. Prioritization of budgetary items should also align with how long each project takes to generate revenue and a profit or income. Such cash positive projects can be found in established industries such as the sugar industry where capital generation is to be had in a timely manner due to existing infrastructure and established market access. Sugar is still our 4th largest export and one of the top revenue earners for the economy.
In addition, revenue generating infrastructure projects should be backed by established long term contracts that have clear revenue and income generation goals that are outlined within a timeframe that allows the economy to sustain established growth rate targets over the near and mid-term. This approach will help us avoid the trap of that old saying “build it and they will come”. These near and midterm projects in turn should also generate enough income to undertake longer term investment needs that are also revenue and income positive to the economy. Such an approach will ensure we as a nation can minimize the borrowing of capital needed for such projects and help us keep the debt level as low as possible.
Jamil Changlee

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The importance of prioritization and frugal spending

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