Articles

Fri 7th Dec 2012

SVG 2013 Budget Estimates - throwing mud on the poor, whilst bathing the super-rich with tax exemptions

A negative effect of the 2013 SVG Budget Estimates will be a cut in public services. This will hurt poor and low-incomes families more, and cause greater pain and suffering.

Meanwhile, the incompetent Gonsalves continues to protect and preserve the apartheid system of blanket tax and customs duty exemptions to the super-rich of Mustique and Canuoan, and continues to let Taiwan cream-off billions of dollars on SVG's deep sea fish licences, without paying one dollar of tax to the SVG Treasury.

Gonsalves is not a university graduate in finance; he is like a carpenter trying to do the work of a doctor. Gonsalves said in his budget presentation that total expected expenditure went up from $793,912,226 in 2012 to $799,122,337 in 2013. It is laughable that he thinks an increase of $5.2 million in expenditure is positive news.

Our country will be worse off in 2013 than in 2012, as the fiscal deficit will go from $103 million in 2012 to $114 million in 2013. This means Gonsalves expects to spend $114 million more in 2013, than he expects to have in income.

Gonsalves should resign as Minister of Finance as the SVG economy will be worse off and his incompetence is increasing. Gonsalves has a severe 'fiscal deficit' of intelligence when it comes to finance and this is damaging the economy.

A major problem in SVG is that both the ULP and NDP regimes have allowed Taiwan and the super-rich of Mustique and Canouan billions of dollars in tax and customs duty exemptions. They are handcuffed to Taiwan, Mustique and Canouan and fail to collect all possible tax revenue from them.

A Green government will abolish this apartheid tax regime and end these discriminatory tax exemptions. Why should the poor pay tax when the rich don't?

The table shows that since 2005, the grossly incompetent Gonsalves has been running the SVG economy with very large fiscal deficits, spending more than comes in. This means Gonsalves has borrowed more money, public debt has gone up and the economy has got weaker, as he is paying more interest on bigger debts.

Year of Budget

2005

2006

2007

2008

2009

2010

2011

2012

2013

Expenditure in $ millions

379

415

451

518

554

610

610

609

622

Revenue in $ millions

341

363

398

447

484

502

505

505

508

Fiscal Deficit in $ millions

38

52

53

71

70

108

105

104

114

(researched by Ivan O'Neal BSc Hons, MSc, MBA.)

Year by year under Gonsalves, the budget has got worse. Now, we have the worst budget in history. No other government has had a deficit; there has always been a surplus. Gonsalves should resign.

SVG Green Party Leader, Mr Ivan O'Neal, makes a strong and urgent call for an end to the apartheid tax regime. It is immoral for the super-rich in SVG to have tax and customs duty exemptions while the poor can hardly put food on the table.

SVG's economy and finances are in a shambles under the incompetent ULP regime. It is time for a prosperous change under the positive direction of a Green government.

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