BRIDGETOWN, Barbados – The Hon. Christopher Sinckler, Minister of Finance and Economic Affairs, has delivered his long-awaited Financial Statement and Budgetary Proposals today. You can download a copy of the document here (PDF, 58 pages).
Barbados Budget 2017 At A Glance:
Revenue Measures (BDS):
- National Social Responsibility Levy – Introduced in September 2016 at 2%, to be increased to 10% effective July 1 2017- $218m.
- Commission on Foreign Exchange Transactions – Effective July 1, a foreign exchange commission charged on all sales of of foreign currency of 2%. (extending to wire transfers, credit card transactions, and OTC sale of foreign currencies) – $52m.
- Excise on Gasoline and Diesel Fuels – Effective June 1, excise tax on gasoline will be increased by 25 cents per litre from $0.74 to $0.99 and on diesel by $0.24 from $0.20 to $0.44. June 2017 retail prices will now be: Gasoline $3.05 per litre and Diesel $2.25 per litre (current prices are $3.00 and $2.15 respectively) – $50m.
- BNTCL sale – $70m.
- Government stake in Hilton Hotel sale – $100m.
- Interest rate savings on domestic debt held by statutory corporations – $70m.
- Savings in overall expenditure will be identified – $82m.
- Tax Amnesty for 6 months – $25m.
BRIDGETOWN, Barbados – In his most recent economic letter – Dr. DeLisle Worrell, immediate past Governor of the Central Bank of Barbados – looks at productivity lessons from Singapore, a country which has been compared and contrasted to Barbados from a development standpoint.
ST. GEORGE’S, Grenada – The International Monetary Fund (IMF) has completed their final review of the island’s performance under a programme supported by a three year arrangement under the Extended Credit Facility (ECF)
According to The Fund:
The Extended Credit Facility (ECF) provides financial assistance to countries with protracted balance of payments problems. The ECF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of low-income countries (LICs), including in times of crisis. The ECF is the Fund’s main tool for providing medium-term support to LICs.
The completion of the review allows for final disbursement of US$2.8m, for a total of US$19.4m, since the arrangement was approved in June 2014.
The island has successfully met targets, including fiscal adjustment and debt reduction. The economy also grew by around 3.9% in 2016 thanks to construction activities and tourism services.
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Source: International Monetary Fund
BRIDGETOWN, Barbados – Dr. DeLisle Worrell, immediate past Governor of the Central Bank of Barbados, continues his series of economic newsletters on his company’s website: DeLisle Worrell & Associates. The following is a full copy of his May 2017 economic letter (reproduced with permission).
It’s Worth the Effort to Save our Dollar Peg
The Barbados economy is dynamic and internationally competitive, led by a private sector that demonstrates remarkable enterprise and innovation, from our largest and most successful firms to youth entrepreneurs of outstanding promise. But our public sector is living beyond its means, and its low productivity is a drag on investment. Reduced Government spending and forceful measures for public sector reform are the key to arresting foreign reserves losses and securing the exchange rate anchor.