RECKLESS SPENDING

Jul 08, 2017 Editorial, Features / Columnists

It is rather ironic that in the midst of all the talk of austerity and the need for urgent belt-tightening in the various departments and agencies, that the government continues to engage in a seemingly unfettered spending spree.
Many, including the opposition, have already expressed their disgust over the 50 percent increase in salaries of some Ministers who were in office less than three months, the $1.2 billion D’Urban Park project, and the millions spent in tuition fees for two junior ministers.
So there is no need in revisiting such reckless spending of the taxpayers’ money, except to say that the President and his cabinet should lead by example and end the wasteful spending that they have foisted on the nation. It is worthy to point out that all this is happening at the same time the government is closing several sugar estates and putting thousands of sugar workers on the breadline.
If the people thought that such extravagant spending was bad enough, the government has made a public spectacle of itself with the rental of a house for $500,000 per month for a Minister. Contrary to claims by some public officials, there is no evidence to suggest that the last government did the same.
Except for the Clerk of the National Assembly, those in the government have essentially remained silent on this issue. Unfortunately, ministerial perks and benefits, especially the frequent overseas trips by ministers during the past two years have put a dent in the country’s finances. This contradicts the criticisms levelled against the last administration by this government when it was in opposition. This lack of transparency and accountability could tarnish the government’s image.
We are under no illusion that the government should stop spending or that everything should come to a screeching halt because of the economy which is in dire straits, but the nation is steep in debt, its GDP has declined, imports have increased while exports have reduced, and except for the mining sector, production in the other sectors has fallen sharply.
It simply does not help matters for the government to continue to borrow and pile up more debt at this stage. A careful look at the 2017-2018 estimates shows that the government will spend more than 60 percent of its GDP to service the national debt. It means that in the absence of anything short of a miracle, there will not be enough funds to improve education or provide adequate health care and social services to the people.
The government seems to believe that the money from oil will be its saving grace. Only fools count their chickens before they are hatched. The issue is not about the amount of money the government will receive from oil, but when it will receive it and how it will be spent. If the government truly has the nation’s interest at heart, then it should make every effort to reduce spending and lower the huge debt which continues to stifle growth.
Lest we forget, in December 2014, President Granger, then the leader of the opposition, sought court action to prevent the last administration from spending money on programmes that were not authorized by Parliament. Now in office, his government has spent billions on D’Urban Park and on the importation of drugs without authorization from Parliament. And as recent as last year, the IMF had warned the government that increased public spending will crowd out space for public investment, despite significant donor support.
In these difficult times when the livelihood of many, especially the poor, is seriously threatened, it seems as though there is no end in sight to the reckless spending of the taxpayers’ money by the Granger administration. It seems that we are condemned to repeat the mistakes of our errant past.

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RECKLESS SPENDING

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RECKLESS SPENDING

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