Be careful!

GOVERNOR of the Central Bank of Barbados, Cleviston Haynes has been speaking about any decision to remove certain taxes or increase expenditure.

Speaking to the media yesterday as Barbados prepares for this month’s general elections, Haynes said he could not deal with individual measures being put forward by the parties. Rather, he would prefer to know the overall policy framework in order to make a determination as to how measures like doing away with the National Social Responsibility Levy (NSRL) and easing Barbadians from paying fees at the UWI, will impact on the economy.

“If we remove certain taxes or increase certain expenditures, then there must be some adjustments elsewhere, and a lot would depend on what the assumptions are,” Governor Haynes said.

He noted that in some economic models it is assumed that policy makers grow the economy and get more revenue. However, he made it clear that addressing the country’s fiscal imbalances as well as improving the stock of foreign exchange reserves, must be the immediate policies for which ever party wins this month’s General Elections.

Haynes was speaking in a review of the economy for the period January to March 2018.

“Those are the two fundamental things that we have to do, and therefore I would imagine that the policy frameworks which the respective parties come with in the election cycle and if they are successful after the elections will seek to address after the elections,” the Governor remarked.

He said that the incoming administration must also enhance the country’s infrastructure and the project flows, while stating that the country has a large fiscal deficit and financing challenges which suggests the financing gap has to be closed.

Barbadians will be going to the polls on May 24 to elect a new government. (JB)