PM agrees debt is unsustainable but says its unavoidable

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Prime Minister Gaston Browne

Prime Minister Gaston Browne is agreeing with former International Monetary Fund (IMF) economist Dr. Thompson Fontaine who has labeled the country’s debt situation as unsustainable.

“He’s right. With that overall gap of 448 million that is unsustainable and he is absolutely right,” Brown said.

He told Point FM over the weekend that his government would rather accrue hight debt than to leave the country without essential services.

” Government finances have been structured in such a way that it is difficult to do otherwise than to borrow.

“We had to borrow to rebuild Barbuda we have no choice and we also have to borrow to build the roads,” he said.

Browne said he inherited a funding gap of approximately $448 million dollars from the United Progressive Party administration.

“It is true that we are adding to the burden…but we are going to need a new hospital and new homes, we have no choice,” he said.

According to Dr. Fontaine, the government should be looking at ways to increase efficiency in tax collection and widening the tax base because the current level of debt financing is unsustainable.

“One of the things I also noticed is where you have growth, an economy that has been growing on average of 4.5 percent over the past three years, but it has not been matched by an increase in tax revenues and that should be of some worry to the government,” Dr. Fontaine stated.

 

 

 

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7 COMMENTS

  1. Excuses me! Wasn’t it you who campaign that your party was the salvation to UPP ineptness that had the islands in a MESS? A former chief banker, man with all the requisite to fix our maladies. Poor me! Fail to read the fine prints, believing your promises, listening your incomplete dream stories that always read like a sequel; to be continued or tune in next week.

  2. How tax revenue go increase when dem a sell duty free paper. If you pay you Minister $1,500 you get one duty free, which you can den resell for higher. Dem need fuh look bout dat and tap barra more money.

  3. Duty free is not the problem, PIT is. Gaston abolished PIT because his Arab friends didn’t want to pay it. Now we have No revenue to replace it. Tap blame UPP Mr ‘ I have the answer’. ABLP is a disappointing failure. And wha mek town look so stink and run down and ghetto, it is depressing to walk through that place.

  4. Its never going to happen, particularly with an election looming but the funding problem exists largely with successive governments policy of expanding the public service payroll in order to keep people employed. There’s so many people now dependent on the government teat that theres not enough money left over from paying all the staff to actually provide the service they are payed to do. How many times do we read about the lack of basic provisions in the hospitals, no tar for the crews to fix the road etc.

  5. Your ineptness in running a country and controlling a government strikes again, PM Garbage Browne.

    Firstly, you claimed that the UPP was not doing a good job; but they were doing a survival job under and International Financial Crisis and kept the economy afloat. IF you were to be in their shoes at the time what would have been done by you and your croonies? I figure you would bail on us and run. But silly us believed in free green turkeys and sheet for our beds and voted you and your croonies in. not again!

    Secondly, although the UPP used bitter medicine to keep ALL of us inclusive of yourself afloat with the PIT, you removed it without doing proper research, hoping that you would gain more in you and your croonies pockets but alas, the speed you removed it the faster your monies hidden at some banks dried up. Wait you think that bank in dubai is not being watched with keen eyes. We watching it.

    Thirdly, instead of using the small monies that the parliamentary reps gets to assist their constituencies with minor road repairs and sporting fields maintenance every month, you all continue pocketing and putting some for green turkeys and bed sheets to be delivered every christmas season to only the some and not the majority. Come on, it is the same some-croonies that get every year and they in turn do not even help with community or constituency local economies. they pocket for themselves. they are the ones that showing the majority that you are inept for the job. IF you giving, you give to the majority, not the favored few, that is how you spread the wealth and encourage those not with you to re-consider or have a change of heart. Well next election something gonna change, maybe Chettie diapers.

    fourthly, from since taking office, you be the Travel Minister Alpha..none can beat that…you have more frequent flying than the planes themselves. Whose money spending? that money could have been used to remedy the unsustainable budget.

    well finally, although there is more to teach you and your croonies, whom i will give them their chance to rebut, well, what else can you PM Garbage Browne do but let the ship sink and hope a new government come into power with the balls and fortitude to save this country. You are a FAILURE from your birth.

    ALL croonies can rebut but first remove the crackers from yall mouths before talking. Worl’ ASS!!

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