The revenue appropriation bill, or what we call the budget - it's the main event on the annual parliamentary calendar - and that's because it goes to the very root of what government does - seek approval from parliament to spend public funds.
This year, Prime Minister John Briceno swaggered into the Chamber like a heavyweight, on the crest of a strong wave of economic growth. But - in a one hour 54 minute speech - he warned that while the numbers from this year were good from, next year, things change. Jules Vasquez has an overview of his presentation:
In an almost two hour budget speech - delivered by teleprompter - and the first in a house chamber not boxed in with partitions Prime Minister John Briceno seemed at ease and right that he should have been, in economic terms, it was a very good year:
Hon. John Briceno, Prime Minister
"Belize's 2021 national economic rebound may be as high as 12.5 percent according to the IMF, twice the rate of the Latin America and Caribbean regions. In fact, save for Guyana and its crude oil bonanza, Belize is the fastest growing economy amongst all countries in North, Central and South America and the Caribbean."
And while strong growth will inevitably follow the COVID contraction - the Prime Minister said fortune favored the bold moves of his government:
Hon. John Briceno, Prime Minister
"According to the Central Bank of Belize, the reasons for the spectacular 2021 GDP growth achievement, were (i) the timely reopening of the economy, (ii) a strong vaccination campaign, and (iii) a resurgence in agricultural production from weather-related shocks, each of these being deliberate policies pursued by Government."
Of course, a robust tourism rebound and revenge travel was a very big part of that:
Hon. John Briceno, Prime Minister
"The services sector grew by 10.1 percent reversing a devastating negative growth of 20.2 percent in 2020. This spectacular outcome was because of the recovery in the overnight tourism, following the opening of the Philip Goldson International Airport in mid-2020. Stay-over arrivals increased by 58.9 percent in 2021."
Strong tourism out-turn and a captive economy led to a strong tax performance - outperforming projections - meaning you paid more tax dollars:
Hon. John Briceno, Prime Minister
"On the revenue front, total Recurrent Revenue is projected at $1.048 billion, which, when added to $50m in grants and $5.36 million in capital revenues, produce Total Revenue and Grants of $1.192 billion."
"All four broad categories of Tax Revenues recorded increases, with taxes on International Trade and Transactions and Taxes on Goods and Services were the star performers, exceeding budgeted levels by 27 percent and 24 percent, respectively."
And while collections were robust - government ended up overspending - in what should have been a year of austerity:
Hon. John Briceno, Prime Minister
"Now the excess spending in the instance of Goods and Services is the item of greatest concern to me: $50m or some 29 percent higher than the Budget. While we concede that the cut for FY 2021/22 was significant, compared to previous years, there must be an acceptance that spending 20 cents of every dollar collected by Government on Goods & Services is intolerably high."
And what's also intolerably high is the wage bill even as he reinstates the payouts - the Prime Minister wars that something's gotta give:
Hon. John Briceno, Prime Minister
"The decision to restore, in dollar terms, translates into an additional $40 million in the Personal Emoluments and $15 million in the Subsidies and Transfer line, for a total of $55 million."
"All the Wages, wage-related subsidies and pensions will cost Government $704 million in the coming Budget year."
"62 cents of every dollar Government collects in recurrent revenues will therefore be spent on wages and pensions."
"What remains for capital investments is $134 million, or 11 cents of every dollar collected. Belize cannot fund its capital investment needs on this meagre level of capital spending."
And while the wage bill is too high - the PM says the pension payments is even worse:
Hon. John Briceno, Prime Minister
"In 2008, pension spending was $38 million. Now it's $100 million. Neither revenue growth nor GDP growth kept pace with wage and pension growth. Not even close."
"And in the case of Public Pensions, a restructuring of the non-contributory framework is a national emergency. The strength of the public finances, a central pillar upon which the State fulfills its Constitutional obligations, will not be put at risk for a pension program which is patently unsustainable."
But while that is a public sector burden - the PM sees a private sector led recovery:
Hon. John Briceno, Prime Minister
"I eagerly anticipate a multi-year economic expansion, with the thousands of new jobs and hundreds of new enterprises envisioned in our Manifesto."
