@Chris

The economists should answer you but with FIAT do you think countries like Barbados have the wherewithal to buy the metals required to back the currency?

When are we going to get the truth the whole truth and nothing but the truth.? We expect the unvarnished truth from those in charge. the political psturing is not good fror the govt, for the people or for the country.The statistics must be credible and they must like Caesar’s wife beyiond suspicion.No growth in May, growth in June. Come with it.

ac i find your comments generally and balanced interesting but in matters relating to the local situation you seem to be out of your depth and suggest you live out the jurisdiction so i would not respond to your previous comment, i would reat it as an opinion to which you are entitled.

i never thought someone would have said it, GOVT spending increased by 9.1% in the first quarter of 2009 plus the increased in taxes ,that has helped us to get where we are now.

Does the government have to pay utility bills?

Are there legally mandated increments to salaries of persons in the state sector?

Does the government purchase any goods and services?

Does the government have to make legally contracted interest payments?

MY question would be, how much of the increase in expenditure is really discretionary?

Peter Pan and Little Angel get ready for some licks.

Barbados is not part of this world.

You must be reminded that the government uses the accrual system of accounting. This means that revenue is recognized in the period in which it was earned, and expenses are recognized in the period in which they were incurred, irrespective of funds being received or paid out. As it relates to VAT, businesses are allowed to file VAT returns, without paying in the VAT amounts due. All revenue would be recorded on the income statement as revenue, but the amounts that
are actually due are reported on the balance sheet as accounts receivable. This is evident by the fact that many businesses are indebted to the VAT office. The same goes for income and corporation taxes. Corporations and sole-proprietorships are also allowed to file returns without paying in the amounts due. This is also evident by the millions of dollars due to Inland Revenue.
In both cases, the relevant departments would use the returns to calculate revenue, as well as the interest and penalties due on outstanding amounts, and the total sum would be categorized as income. For example, the deadline for filing income tax is April 30, 2011, and Company X filed a return in May 2011, with an amount payable of $5,000. Although, filing was done in May, 2011, the $5,000 would be recorded as revenue for April, with interest and penalties being calculated and reported in the months in which they were incurred.

Current revenue for the period April 1 to June 30, 2011 was listed as $584.7 million; but how much of this amount has actually gone into the treasury. Only the balance sheet and statement of cash flows will be able to answer this question. In the absence of these two financial statements, these figures are meaningless.

What we should ask is, how much of the revenue reported was actually collected, and what methods are being employed to ensure that the outstanding amounts will be collected.

1. SHOWERS AND THUNDERSTORMS ASSOCIATED WITH A LARGE LOW PRESSURE
SYSTEM LOCATED ABOUT 900 MILES EAST OF THE WINDWARD ISLANDS ARE
GRADUALLY BECOMING BETTER ORGANIZED. SURFACE PRESSURES REMAIN LOW
IN THE AREA…AND ENVIRONMENTAL CONDITIONS APPEAR FAVORABLE FOR A
TROPICAL DEPRESSION TO FORM OVER THE NEXT COUPLE OF DAYS. THIS
SYSTEM HAS A HIGH CHANCE…70 PERCENT…OF BECOMING A TROPICAL
CYCLONE DURING THE NEXT 48 HOURS AS IT MOVES WEST-NORTHWESTWARD AT
15 TO 20 MPH.

david about $204.1million. however, some of the expenditure can be attributed to increases in salaries and wages and transfers of subsidies