Budget: No N.H.I., no raises, no new taxes
In a document called a New Time for Belize, Prime Minister Said Musa today presented the budget for the fiscal year 2002/03 to the House of Representatives. While the speech highlighted the adverse economic impact of hurricanes and terrorism, according to the government, G.D.P. still managed to grow by more than four and a half percent and unemployment is down a half point to eleven percent. With those selected indicators as a backdrop, the overall message sent by the P.M. is that not only are things under control, they promise to get better.
Prime Minister Said Musa
“We recognise that we live in a world of growing inequality, a world of economic uncertainty, a world of crime and violence. We recognise that there is also a Belize that is less caring, less compassionate, less disciplined. We must ensure that all our people benefit from growth.
The measures which we announced in the Revised Budget on December seventh 2001, to reduce public sector expenditure have begun to yield positive results and we must remain focused on our goal to achieve a more efficient and cost-effective delivery of public services. The commercial sector can do its part when we buy and sell Belizean products and reduce unnecessary imports of foreign goods. The new budget is programmed to meet all our external obligations. The productive sector has been and will continue to continue to be fully serviced. We are determined to restore greater stability in respect of foreign exchange inflows and outflows in order to maintain a sound, enabling environment for enhanced private sector investments.
This budget which I present to the house and to the nation, sets out a clear vision and strategy for sustaining economic growth grounded in a firm commitment to fiscal discipline and prudent financial management. It pursues macro-economic stability for private sector investments and jobs, while continuing to strengthen the social fabric of our nation. It provides a framework for more development buttressed by the political shield of democracy, the social shield, which is justice and a mental shield, which is a culture of work, creativity and productivity. And it achieves these objectives without any increase in taxes.
But as the P.M. pointed out the positives, Leader of the Opposition Dean Barrow had serious problems with the numbers supporting the optimism.
Dean Barrow, Leader of the Opposition
“There really seems to be a total disconnect between the picture that the figures the Prime Minister produces, the pictures that those figures are attempting to paint and the reality that people are living out here. We see this over and over. The initial pretence that there was not a foreign exchange crisis when everybody knew what the reality is. I see that in the statistical table that is annexed to the speech, they say for example that the rate of inflation is one point one percent. These things are clearly inaccurate, not to say fabricated, and it just seems to me that really the rhetoric is absolutely divorced from reality.”
Janelle Chanona
“Will the UDP be presenting rebuttal figures to counteract these numbers?”
Dean Barrow
“Well in terms of the actual statistics, it’s difficult for us to get at the truth because it is the government that does the collection of data. So that when there is a deliberate attempt to distort figures, all we can do is to say that as a matter of common sense and logic, those figures can’t be accurate. We can’t say what the true figures are because we don’t have access to the data collection machinery. But that will not stop us from pointing out as I said the absolute illogic of the figures that have been quoted.
For the record, budgeted expenditure for the coming financial year is projected to total five hundred and twenty-nine point five million dollars. Revenues are forecast at four hundred and fifty-four point two million, with the seventy-five point three million dollar deficit being financed by foreign loans. The budget speech in its entirety will be broadcast immediately following tonight’s newscast. Internet viewers can access a text of the speech at www.belize.gov.bz. The budget will be debated in the House on Friday, March twenty-second.
