Prudent governance
published: Friday | March 14, 2003
THE EDITOR, Sir:
I have quoted below from the Nation newspaper in Barbados:
"Government is taking International Monetary Fund (IMF) advice and slashing nearly $56 million from its capital budget this year - in spite of upcoming elections - as its major weapon to reduce the fiscal deficit from about $565 million. According to the 2003-2004 Estimates laid in the House of Assembly yesterday, capital spending was projected to decline by $55.9 million, or 17.1 per cent, from $326.8 million to $270.9 million. Approved capital spending in the current Estimates (2002-2003) was $361.9 million. "This reduction in capital expenditure is the chief measure to be used to reduce the fiscal deficit," a Government statement said. At the end of the annual review last month, both Government and the IMF agreed that measures adopted over the past two years to stimulate the economy had gone as far as possible and it was time to shift to a period of low budget deficits."
This sounds like prudent governance and it would do our political thinkers well to take a page out of their book.
