Fri 25th Mar 2022
SVG Government revenue down for February 2022 – a shortfall of EC$10m
According to The Vincentian newspaper of 18 March 2022, fiscal operations for the Central Government for the period ending February 2022, shows another fall in government revenue. Collections recorded at the end of February 2022 regarding current revenue amounted to EC$86.8 million, compared to EC$96.9 million in 2021. The EC$10.1 million shortfall has been described as significant.
It seems that the SVG economy is shrinking and is even more fragile and unstable than previously thought. It looks as if the economy is not far from collapsing, as it was explained in the newspaper article that ‘the economy was saved by property sales, including one major one in Mustique in 2021’.
It seems incredible that if it was not for one property sale in Mustique, the economy may have collapsed. One property sale!
Running an economy this badly is putting many thousands of jobs at risk.
The ULP regime has been in government since 2001, and still after all this time, they have failed to create sustainable sources of revenue. This is a very incompetent way to run an economy and a country.
The Leader of SVG Green Party, Warrant Officer Ivan Bertie O’Neal BSc (hons), MSc, MBA, who gained a BSc (hons) in Accounting and Finance and Economics from Oxford Brookes University, England, strongly contends that it is the poor quality of education within the ULP Regime that is the cause of revenue shortfall and a very weak economy for years.
The ULP regime has failed to manage Public Accounts adequately enough to produce a fiscal surplus for one single year.
It was reported in the article that the ULP regime intend to conduct an interrogation with personnel within the Ministry of Finance to determine if there were any reportage issues. How on earth can these people run an economy and not know where revenue is meant to be coming in from? The level of financial incompetence within the ULP regime seems to have no limits.
Under the ULP regime, the SVG economy is run under a strategy of high levels of taxation. It is no wonder that the economy is shrinking and we have reduced government revenue.
The high level of taxation is squeezing the ability out of businesses to operate. As more businesses are forced to close under the strain of high taxes, the pool of productive activity decreases. With a reduced amount of productive activity, there is less earnings to be taxed.
This creates a vicious circle of ever decreasing productive activity, resulting in an ever decreasing level of earnings by businesses to be taxed. The ULP regime’s high taxation economy is eating itself and cutting of its own source of revenue. It’s like a stupid hungry snake eating itself from its tail toward its head, enjoying the feeling of full belly, but too dumb to realise it is slowing killing itself by eating its own body.
According to the Leader of SVG Green Party, Warrant Officer Ivan Bertie O’Neal BSc (hons), MSc, MBA, the ULP Regime is given away more revenue in Fish tax exemptions to Taiwan, than the ULP Regime puts into the SVG Treasury. Taiwan is not a net benefit to the SVG economy.
The quickest and easiest way to create sustainable revenue for the SVG Treasury is to take back our Atlantic Ocean tuna fishing licence from Taiwan and create our own tuna fishing and canning industry. This will increase revenue for government and strengthen the economy.