Manage expenditure better

There is no more room for increased taxation. So says Executive Director of the Institute of Chartered Accountants of Barbados (ICAB), Reginald Farley.

 

Rather, he has suggested “that any adjustments in the levels of the deficits would have to be by way of expenditure management and also that there needs really to be a continued look at ways in which we could seek to reduce the levels of interest expense in our debt”.

 

 His comments came while addressing a press conference at the ICAB headquarters on Monday to launch Accountants’ Week 2016. He was speaking in relation to the Central Bank of Barbados’ third quarter report, particularly the area of fiscal debt. 

 

He continued, “We think that going forward this aspect of our economic management has to be looked at. …I can see that the level of investment that is planned for tourism will put us in a good position to capitalise on what appears to be a growing world market. Barbados continues to be a popular destination, but if we are to be able to afford the level of national investment in keeping our streets clean, in keep our surroundings well maintained, security – those expenses internally fall to the State, we, therefore need to create the fiscal space by reducing the deficit and reducing the debt.”

 

He also highlighted some aspects of the Report that were pleasing. Farley pointed out that “the growth in the economy led by the tourism sector certainly is a good sign [and] that there is increased airlift expected in the winter season”. He additionally said he is “pleased to see that by the end of the year we will be increasing our capacity in alternative energy moving from 13 percent to 20 percent of our energy supply, that is a great move”.

 

However, he noted that the ICAB is pleased “with the growth but we are not going to get the full benefits of the growth if we continue to have to service debt based on the deficits and we need to make adjustments”. (MG)