The Budget Estimates 2023 were both disappointing and underwhelming. The most notable part of the Budget Estimates 2023 is the lack of revenue created by the government. After all these years in office, the ULP regime has no revenue creating industries. There are no government-owned industries in our economy that create sustainable sources of revenue for the SVG Treasury.
A large amount of the EC$1.4 billion 2023 estimates is tax which amounts to EC$648.3 million. Taxes on income and profit are expected to rise by EC$8.3 million; taxes on goods and services are expected to increase by EC$20 million and taxes on international trade and transactions are expected to increase by EC$45.7 million in 2023.
These types of taxes on our people and businesses are huge amounts and can be very damaging to our economy and people. High taxes impoverish our people. High taxes severely impact people as well as businesses, with the latter having its ability to invest in expansion reduced to zero. High taxes also limit people’s ability to spend and this means reduced sales for businesses and less money circulating in our economy and country.
The Other Receipts of EC$225.9 million is a big hole in the Budget Estimates 2023. Other Receipts illustrates the amount of revenue that government has failed to create which is needed to balance the budget. Other Receipts is essentially a joke expectation. It seems that the ULP regime hopes up to $225.9m will fall out of the sky into the SVG Treasury. It is wishful thinking and shows that the SVG government is lacking in revenue.
Next year will be tough. More businesses will be forced to close and this will make rates of unemployment and crime even higher. We can expect higher taxes and higher bills as the ULP regime hunt around for money.
Other Budget Estimate 2023 concerns are:
- The country’s debt as of September 30 has increased to EC$2.1 billion. It seems like debt is recklessly spiraling upwards out of control, rather than being prudently reduced;
- Debt service amounts to EC$282.9 million. It is a shame that so much money is being wasted on debt, rather than being invested in our people. This is a consequence of decades of poor financial management and the failure to create sustainable sources of revenue;
- And, funds owed to the Republic of China on Taiwan include the modern high court project (EC$6.8 million) and the hotel development project of EC$10.8 million. Why on earth do we owe even one dollar to Taiwan, when they fail to pay their fair share of tax?
The Minister of Finance is not a university graduate in finance and has been utterly hopeless in running the finances of SVG. After 21 years of financial incompetence, the ULP government is still teetering on the edge bankruptcy.
Poor financial leadership and a reliance on begging and borrowing have caused high taxes and a rise in unemployment, crime and poverty in our country. A shocking consequence of this is that many families have had their electricity and water cut off, as they could not pay the bills and put food on the table for their children.
SVG needs a strategy for success and that means going Green. A Green government would significantly boost revenue and create thousands of new jobs by taxing the super-rich of Mustique and Canouan and setting up an SVG tuna fishing and canning industry.
SVG Green Party