SVG

Deficit fell because gov’t didn’t pay bills – Eustace

KINGSTOWN, St. Vincent – Prime Minister Dr. Ralph Gonsalves has told Parliament that the deficit for the first third of this year is lower compared to the same period of 2011.

But Opposition Leader Arnhim Eustace said the situation has resulted from the non-payment of some of the government’s bills.

A deficit refers to the amount by which something, especially a sum of money, is too small.

“Mr. Speaker, let me say, first of all, that the fiscal situation for the first four months of this year, compared to the first four months last year, … has improved. But I want to reduce the force of that statement by saying it is still a challenging situation and we are not out of the woods,” Gonsalves told Parliament Thursday in response to a question by Eustace.

He said that between January and April this year, total revenue and grants was EC$152.4 million compared to EC$144.7 million year-on-year, while current revenue was EC$148.3 million in 2012 and EC$142.6 million last year.

Total expenditure for the first four months of 2012 was EC$159.3 million, compared to EC$176 million during the same period last year, while recurrent expenditure was EC$157.6 million and EC$172.6 million, respectively.

The current balance registered a deficit of EC$9.26 million, an improvement over 2011, when there was a deficit of EC$29.9 million.

The overall balance was a deficit in 2012 was EC$6.98 million, compare to a deficit EC$31.27 million last year.

“So as I say, a little better than last year, or, you can use the formulation, improved somewhat, but still we have our challenges,” Gonsalves told lawmakers.

But Eustace said on radio on Monday that the deficit had fallen not because of an improvement in the nation’s economic circumstances.

“The deficit has fallen because you didn’t make certain payments that you should have made. If he (Gonsalves) had made those payments — like those that went to the private sector and so on — which ought to have been made, it would have been wider, not less,” he said.

“By not spending something, which you owe, that does not solve your deficit problem … because you still owe it and at some point in time you have to pay it. So let us not fool the public with that. And I think the Prime Minister himself recognises that,” Eustace said.

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Discussion

9 thoughts on “Deficit fell because gov’t didn’t pay bills – Eustace

  1. The claim in this article suggests that Government keeps its accounts on the cash rather than accrual basis…a method of book-keeping that purports to mislead and which should occupy no space in modern accounting practice.

    Posted by Jeannine James | June 5, 2012, 01:50
  2. Political bias, bigotry and prejudice are a helluva ting. It warps objectivity, and the very mind itself.

    Posted by STEVE_HUGGINS | June 5, 2012, 08:40
  3. Gonsalves said “I am here to finish the work of Maurice Bishop”.

    Maurice Bishop the Grenadian Marxist revolutionary told his government to go to Russia Cuba and another country to learn how to produce two sets of accounts, why? to fool the creditors and lenders which included the IMF and World Bank.
    This fact is recorded in Public Records and is true.

    Gonsalves needs to tell us if the Bishop work that he is completing includes cooking the books. Because without clarification we can assume anything.

    Posted by Peter | June 5, 2012, 21:08
  4. More NOISE from Eustace.

    Posted by VINCYPOWA | June 6, 2012, 00:29
  5. l.o.l they did it before,ie not paying bills then claiming the deficit fell,so it’s not that much of a surprise,cut back on medicine,guns for the police,furniture for schools…and the deficit will fall some more l.o.l

    Posted by Joe | June 6, 2012, 07:51
  6. VincyPowa, Is it more noise from Arnhim, or is there some truth to what he’s saying? Your one liner doesn’t cut it. You must defend the issue with facts and this will add credence to the argument. The fact remains that the SVG economy is in trouble. Let’s not pretend it’s otherwise.

    Posted by pvpalmer | June 6, 2012, 13:09
  7. The piggy bank been round a long time,we elect ulp they break it and tek out all de money and buy corn curls fo their friends,now nuttn aint dey

    Posted by Jahu | June 6, 2012, 21:39
  8. The piggy bank was broken by Donkey Dung Gonsalves [ a name invented by VINCYPOWA], now we rely on big bags of US cash, only a million dollars at a clip, we all want to know where that comes from.

    THE MONEY IN THE OLD CROCUS BAG, IS IT UNLAUNDERED SWAG? WE KNOW LATER IT BECAME SPENDABLE ‘HOLD IT UP TO THE LIGHT NOT A STAIN IN SIGHT, HOLD IT UP TO THE NOSE SMELLS LIKE A ROSE’
    WAS THIS COCAIN MONEY? WAS THIS CHAVEZ MONEY? WAS THIS DIRTY MONEY FROM THE DIASPORA?
    WAS THIS A DRUG BARON DONATION?

    Because clean money comes through the banking system not by courier in an old crocus bag, Who carried such an amount into SVG without declaring it? We know that Donkey Dung Gonsalves cousin, his yard boy Francis the Philistine, hawked it about in SVG.

    Posted by Peter | June 8, 2012, 08:26
  9. I AM HERE TO FINISH THE WORK OF MAURICE BISHOP.

    Ralph E. Gonsaves

    Posted by Peter | June 9, 2012, 09:09

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