Balancing the Scale
It seems Caribbean governments have at least one thing in common and that is spending more than is collected. All for the sake of remaining popular which is the objective of a political party and government. It begs the question whether democratic systems of government have the capability to support relevant decision-making in times like now where governments need to make prudent financial decisions.
This article is to engage the issues of falling national revenues due to price declines for fossil fuels, the ongoing commentary and the PM’s 8 January 2015 statement with its attendant criticisms. I am going to focus on the role of the real estate and construction sectors in this unfolding series of serious challenges.
This is the graph and table from my previous budget commentary ‘A Fistful of Dollars‘ to illustrate the trend in terms of how successive governments have attempted to balance revenues and expenditure.
| Year | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
| Revenue | $24,016 | $34,129 | $35,126 | $40,381 | $49,465 | $36,664 | $41,284 | $47,000 | $50,736 | $55,041 | $60,351 |
| Expenditure | $27,918 | $34,119 | $38,054 | $42,261 | $44,206 | $36,915 | $49,016 | $54,600 | $58,405 | $61,398 | $64,664 |
| Surplus/Deficit | -$3,902 | $10 | -$2,928 | -$1,880 | $5,259 | -$252 | -$7,732 | -$7,600 | -$7,669 | -$6,357 | -$4,313 |
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Barbados Underground 
@ David [BU]
You said “It seems Caribbean governments have at least one thing in common and that is spending more than is collected…”
The formula adhered to by every successful corporation around the world is at direct variance to this practice of spending more than is collected because whatever deficit we, the faceless governments, incur while feathering our politician pockets, another faceless debtor, our children and their children, faceless nameless spermatozoa, will, in the fullness of time, be required to pay.
It seems like some sort of economic version of the Yin and the Yang where the inefficiencies of government must be the antipode of private sector efficiency for, if the two were to experience surpluses, for any protracted period of time something inexplicable and cataclysmic would HAVE TO happen
It must be some vodoo-like unspoken cosmic law that is being obeyed for this pattern of regional commonality can’t be (a) chance or (b) a cycle which the astute efforts and clear plans of those of us who love our cvntries propose and see trampled in the dust by rampant mediocrity and the scum that administers our respective economies.
46 minutes to the insulin shot….
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@PUDRYR
We must blame ourselves.
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Cornmeal pap or cornflakes.
middle cut or steak.
flying fish or fillet mignon.
cut and contrive or go into debt.
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