The budget is usually presented and finalized before the start of government’s fiscal year in April. But this year, with the change of government and public finance matters in a generalized state of upheaval – government has delayed presentation of the budget until the first week in July. It’s been viewed with apprehension in some quarters – but government says that’s given them time to embark on a national consultation. It encourages social dialogue and input form partners – and today a summary report was presented. The Prime Minister and his lead technicians explained why this new process is important.
Joe Waight, Financial Secretary
“Too often in the past our national budgets were drawn up many times in a hurry and often based on information within the government itself and it generally tended to be a continuation of the status quo with priority given to paying salary and wages and sometimes only that and then you wait for next year with the hope of things to come. The identification of needs was internal and at best an ad hoc process and disconnected really from the realities of what is happening in the wider economy. We have recognized that this is a far from satisfactory process and was not really responsive to the needs of people. Our new government is determined to make the budget process inclusive and as responsive as possible.”
And while the Financial Secretary heaped praise on the process, the Prime Minister is proud.
Hon. Dean Barrow, Prime Minister
“I think is a fundamental departure and a great achievement and if it sounds as though I am being immoderately immodest, well I plead guilty. I want to signal that there is a commitment on the part of government for this to take place on an annual basis. Formally let me say that this national consultation process signals that we in government are changing the way that we make policy. We are indicating, we are heralding, a fundamental change of approach. We’re doing this because we want and insist that government policy be directly relevant to the needs and desires of the people.”
But with lean money, you can’t please all the people even some of the time.
Jules Vasquez,
Sometimes the worst vice is too much advice. Might this process be suffering from too inclusive and in so doing, becoming a weight on itself?
Dr. Carla Barnett, Financial Advisor
“No Jules I don’t think so. I think it is precisely when you
have big problems that you have to take the time to get people to talk and form consensus. There is a large set of problems that we have to deal with and therefore we want to ensure everyone is onboard with the solutions. Not everybody can be satisfied but that is true whether people participate or not. But at least if they participate then they understand constraints within which we’re operating.”
Hon. Dean Barrow,
“Nobody apparently came to the table where these discussions are concerned. Any unrealistic expectations, it seems that this was a mature process which kept always on the table the fact that there are constraints. So naturally at the end of the day when people see the actual budget, they will be some disappointments I am sure but it is not anything we can’t handle because the stage has been properly set and people have been asked not to expect that is possible out of consultations.”
Jules Vasquez,
In lean and burdened times such as these it is said that the budgetary process is normally a balancing act between what can’t afford and what you aren’t going to get.
Dr. Carla Barnett,
“It will be different than a balancing act.”
And to tip the revenue scales in government’s favor, government is looking to the oil industry.
Hon. Dean Barrow,
“A lot depends on where we go with oil revenues. There is in an any event an increase in the revenues we will collect from the oil industry as a consequence of the natural growth in the industry. That is, BNE is now up to 4,400 a barrels a day from the 3,000 a day that they were formerly producing. Because of the increases in the prices that they get on the world market, our share in terms of the current tax arrangements, is going to increase.”
The new budget will be presented the first week in July and by law must be approved before the end of July. The Prime Minister confirmed that there will be no wage increases for public officers while senior financial advisor Dr. Carla Barnett said they are still considering adjustments to the GST.
