Musa admits mistakes, focuses on recovery

We began tonight’s newscast–like we have on many nights over the last few months–on the subject of finance. A number of factors have combined to mark today as what may be looked back on as the point at which the Government of Belize snapped out of several years of economic denial and finally began to take action to put its financial house in order. It began with an interview given by Prime Minister Said Musa on Krem Radio’s “Wake up Belize” Show. While the PM has gone on record with journalists a number of times since the present crisis broke in August, today was the first time that he seemed to look at the future and see more than mañana.

“Obviously, along the way, with so many issues facing us, many errors of judgment were made” he told host Mose Hyde “but the important thing,” he continued, “is not to engage in the blame game but figure out how we will move forward.”

But that prescription for financial health will find Belizeans tasting some bitter medicine. With the deficit heading toward an unacceptable six percent of GDP, Musa said that Government must find an additional seventy million dollars to bring the gap down to a manageable size. He referred to Government’s “massive expansionist programme” that now must be “pulled back”. And while he made the usual noises about more efficient use of utilities and vehicles as well as the old mantra of improved revenue collection and plugging the leaks at the free zones, the prime minister did allow that if those tactics were unsuccessful, new tax measures would be introduced. What those measures might entail were not specified but sales tax, business tax and income tax are the usual suspects. “All of us will have to make sacrifices”, said Musa, and to prove his point suggested that he would consider cutting the salaries of cabinet ministers and area representatives.