Opposition leader blasts budget estimates
Opposition Leader Arnhim Eustace. *Photo credit: cananews.net
KINGSTOWN, St Vincent, CMC – Opposition Leader Arnhim Eustace has compared the estimates for the 2010 national budget to the buildings that crumbled in the powerful earthquake that struck Haiti last week.
“I regard these estimates something like a pack of cards from which a building in built. In terms of revenue, it is not there and it will collapse much like the buildings in Haiti,” Eustace told Parliament.
On Tuesday, Prime Minister Dr. Ralph Gonsalves presented estimates for an EC$913.5 million (US$338.3 million) budget, reflecting a 20 per cent increase over last year’s figure.
But Eustace said that the estimates lacked “internal consistency and was very optimistic in terms of expenditure vis-à-vis revenue”.
“I think we need to have another look at this estimate and I hope that when we meet next week Monday and the Prime Minister outlines his budget we may see something that generates more confidence — not only on the part of those in this Honourable House but confidence on the part of our people and confidence on the part of the private sector of this country.”
Eustace said the estimates were “the worst” he had seen and doubted the ability of the government to implement the measures contained in the document.
“As I looked at the summary, I wondered if I was seeing right. I wondered whether in fact our country was in anyway affected by the world economic and financial crisis,” said Eustace, a former prime minister and minister of finance.
“Indeed, it seems that we are immune from the effects of that crisis as we sort, once again, to increase our expenditure at a faster rate than we are earning revenue.”
Eustace, an economist, said the estimates were not sustainable adding “in the current financial environment, do we have the financial capacity to implement what we have on paper?
“Categorically, I say no,” he said, adding that since 2005, the year when Gonsalves came to power, there have been “changes in the way in which the finances of the country were being run.
“We did not have this run away expenditure train. If we continue along this path, I predict it won’t be long before we find ourselves in the hands of the International Monetary Fund and a structural adjustment programme,” he said.
“None of us in the Parliament would want that,” he added.
Eustace said that as a result of the national debt, which at the end of September last year stood at EC$1.19 billion (US$400 million), the country was paying an estimated EC$12.4 million (US$4.6 million) to service the debt.
He said at this rate, the country was paying EC$1,293 (US$479) per minute to meet its debt obligations, adding “ it is important that our people understand that when we talk about debt service … you have to take taxpayers’ money every month, every week, every day and pay it [on the national debt].
He said with the government proposing to borrow EC$149M (US55.2 million) in 2010, the national debt could increase to EC$1.4 billion (US$530 million) by the end of this year.
But the Opposition Leader supported government’s plan to meets it obligation to a new entity that would replace the cash strapped British American Insurance following the collapse of the Trinidad-based conglomerate, CL Financial Limited..
“I believe that it is absolutely necessary to have that. That I see as a priority. That I see as a need, not a want, and I give support to that particular project.”
Mr. Eustace, since you are so critical of the Budget Estimates, I think what you should do is to present an alternative budget to the people of St. Vincent of the Grenadines. Let us see what you have to offer.
Come on Outspoken that is not possible. The role of Eustace is to be critical of the estimates. He is quite capable of doing that. Tell me about the things in the estimate that will contribute to real growth and development; things that will create wealth; things that will make living in St.Vincent any more comfortable; things that will reduce our food imports and produce food to feed our tourists especially on the super islands in the Grenadines.
It is the same old trick to fool the electorate.
It is time for us to forget about the polititians and just be honest to ourselves.
Our Prime Minister did not accept any changes suggested to new constitution, before he put it to a vote.
What confident do you have Mr OUTSPOKEN that he will support alternative budget from the opposition.?
His pride will not let him. I in tune with the Dr. since 1979 my first vote in SVG went for UPM.
OUTSPOKEN , dont for get opposition do not have present an alternate Budget, their main task is to poke holes in government programs, they are not in power period. Many a times we lost out on objective thinking. Our debt is 1 billion and climbing it is time we come together, is that too hard to ask.
Dr. Ralph Gonsalves has served SVG well
It may be said that I am a very biased “Labour Hog”. But I want to believe that I am an objective individual, an independent thinker and a man who is not afraid to tell it like it is.
Even Stephen Wonder would see that Mr. Eustace has been wrong about every Budget presented by Dr.Gonsalves since he came to office in 2001.
Salaries have been paid on time – except in a few cases where there were minor holdups with processing of wages for hourly workers; the government has met all payment obligations on loans and to regional and international institutions; the economy of the country has grown every single year, even after 911, the global meltdown and world recession; there have been more social programmes implemented in SVG from 2001 – 2009, than during any other period in the history of governance; we have not heard any alarm bells sounded by financial institutions like the World Bank and IMF; and I could go on and on.
Since 2002 up until yesterday, during every single one of Mr Eustaces’ Budget/Estimates presentations, he declared in his opening “…this is the worst Budget I have ever seen in this country…”
Brothers and sisters, we have no natural resources in our country. Thanks to the the progressive foreign policy of the Gonsalves ULP, SVG receives great help from many nations with different ideological persuasion. Given Mr. Eustace’s backward rhetoric over the years, I doubt he will ever be able to turn to many of these countries for assistance.
Seriously, which other Prime Minister in the world would have been able to put the Argyle International Airport project together in the “magnificent” way De Comrade did?
Whether one is a “Ralph hater” or a “Eustace lover”, one has to admit that Comrade is the better leader (“Better By Far”) for SVG in these times of local and global economic challenges. One also has to concede that Mr. Eustace has failed to demonstrate over the past 10 years, that he has what it takes to lead SVG to progress. His poor performance in the House a couple of days ago showed how unprepared Mr. Eustace is for the Prime Minister’s office.
Many faults has De Comrade, but being a poor leader is not one of them. Like Mitchell and Cato before him, he may come over at times like an “I Man”, but in my opinion, Dr. Ralph E. Gonsalves has delivered in fine style. He was easily the Caribbean leader of the last decade. He has served SVG well!
To Wade:
Even Stephen Wonder could see that you are not an independent thinker, and that you are afraid to tell it like it is.
You claim De Comrade has many faults:- step up and chide him on his faults. SVG will benefit. You seem to have a personal grouse with the NDP, that’s your business. What are you singing for?
I remember the days when De Comrade tore you and your SVG Labour Party apart.
Come back to SVG and help us backward people instead of worshiping De Comrade from the comfort of your knees
Freddie boy you are just as hopeless as Eustace. His job as opposition leader is to be critical, come on, is that how you feel. Well I guess he is so good at been critical, that he will continue to be Opposition leader. He always critical but when one is critical they should also be in a position to present alternatives.
Freddie you see, that’s you problem, too bent on party politics, you will never recognize any thing good the ULP government do for SVG and that is going to continue with you and all the other NDPites
Calliaquaman. NJ. An alternative budget is not something the Government will and have to accept. Mr. Eustace criticized the budget so bad that I will want to see the budget he will put forward if he was PM.
National dept is 1 Billion and climbing. Are we seeing things in SVG for that 1 Billion or is it just money wasted?
Boys, Boys,boys this is not the time for bickerring. Wade is very good with an argument from a distance,the music is still playing and he has to come back to SVG for the dance.
Our debt is a $ 1 billion and climbing , but the finance Minister who is also the PM is not giving us the full picture. That is causing me much stress. when there is economic instability people tighten their belts, that works for the population and should work for government as well. I see Barbados is advocating a wage freeze for the entire country, but my PM has increased the Budget by 20 percent. The man has gone crazy, he is spending like a mad man. The IMF last year gently requested of our PM to curbed spending, but he is not listening . The PM is trying to spend us out of a recession , what he is infact doing is saddling me and my children with more debts.
He wants us to have closer ties with Africia. what do they have to offer us but corruption and bad government.We will carve out our own direction that is best for our people based on the resources that we have , which is our people. If not, lookout white Elephant . We the people of SVG have the right to call for an independant audit of the country’s finances. Let us all be objective it is for the good of the nation.
Outspoken you are not worthy of any response to correct your misinformation.
I am not NDP nor ULP. I am 100% Vincy. I do not depend on you, Ralph, or Arhnim.They work for me and I will tell them as I see it. Never fight for any polititian, let them fight for you.
Let us lift the debate so that others can benefit.