Govt’s fiscal policies contributing to bleak Xmas spending

Govt’s fiscal policies contributing to bleak Xmas spending – Jagdeo

Dec 22, 2017 News

The policies implemented by the coalition administration combined with layoffs in the sugar industry have contributed to poor spending during this year’s Christmas season.
Opposition Leader, Bharrat Jagdeo, made the case yesterday at a press conference where he singled out the Government for condemnation.
“I am very disappointed that the Government has not seen it fit to pay the Public Servants a bonus and to pay the discipline forces the one month tax-free allowance that they would normally get; and has not seen it fit to extend the usual financial courtesies to many sections of our population,” Jagdeo stated.
He stated that as a result of the position taken by Government, “we are seeing some sloth in the season and I do hope that it really picks up later for the sake of many of the vendors and others who are having a hard time. Many of them came to speak with me in relation to their ability to earn.”
It seems as though the issue of disposable income is one affecting large groups of people who traditionally had money to spend.
The Government often says that it does not have fiscal space to accommodate the year end payments.
“The variance between the budget November and December showed an $8 billion improvement in the fiscal accounts by January 1, 2016 because they have underestimated revenue and over estimated expenditure.
“There is no doubt that 2017 will have a similar situation because we believe the numbers in the estimates have underestimated revenue and overestimated expenditure for the remaining part of the year.”

Opposition Leader, Bharrat Jagdeo

“Next year, when the budget is presented you will see a massive fiscal space that the Government could have used had it been more realistic with the finances to give people their bonuses? This is one of the setbacks of having too early a budget. It gives the Government an excuse to argue that it doesn’t have fiscal space and therefore cannot pay the bonuses.”
Jagdeo, former President and Minister of Finance noted that at year end with the bonuses paid to public servants and the duty-free month salary to the military, the economy benefits from about a $2 billion injection which makes a huge difference to the disposable income available to residents.
He also noted that the impending dismissal of over 4000 sugar workers, the spending patterns in the sugar belt has also changed because people are worried about their ability to earn next year.
“That is a contributory factor to the bleak situation out there,” Jagdeo stated.