Monday 23 October, 2017

Long road ahead for economy, warns Governor

Acting Governor of the Central Bank, Cleviston Haynes has suggested a number of strategies to stabilizing the country's economy.

Acting Governor of the Central Bank, Cleviston Haynes has suggested a number of strategies to stabilizing the country's economy.

Acting Governor of the Central Bank of Barbados, Cleviston Haynes is of the view that the Barbados economy is plagued with so many challenges it will take some time and varying approaches before it is is back on its feet.

One factor which the Governor noted could help the government to close its fiscal deficit lies in the collection of outstanding taxes. He explained the overall figure of unpaid taxes for the financial year ending 2015/2016 was $29Million and he added that the figures for the first-half of 2017haves not been received as yet.

“This has been building over time and from that perspective it does represent a source of funds that if received would help to attenuate the overall fiscal position of government.”

Haynes also suggested a reduction of the government’s expenditure in the area of transfers and subsidies, a whopping figure of $800Million, to help close the deficit. He said if the efficiency of these agencies could be improved, without layoffs, it could work well in government’s favour.  

“We can’t look solely at whether we were going to cut jobs but we have to look at the efficiency of services, we have to look at the cost of delivering those services and that is how we are going to be able to try to address the whole issues of reform of the expenditure levels.

"There is a possibility that in so doing there can be some loss of jobs. Clearly, everyone wants to protect jobs so therefore, one has to look carefully and take a very strategic view as to how one is going to address the expenditure of the statutory bodies," Haynes stated yesterday.