Fiscal Problem In Barbados ! eb2d17288e33d24ec34a90fd04dca0d0 
Dr. Justin Robinson recently shared some interesting information on Facebook, he attempted to breakout government expenditure and revenues – see the presentation, ‘facts on the Fiscal Situation in Barbados last 20 years. A focus on Transfers and Subsidies‘.
Successive governments have been challenged by the size of the transfers and subsidies allocation and it has become more so in the last decade given the fiscal challenges being experienced. Although out of the scope the blogmaster used the opportunity to question the chairman of the NIS about government’s non NIS pension liability. Private registered pension plans AND the NIS receive input from actuaries to inform the level of funding required to ensure they are able to meet future obligations.
It is an open secret the pension plan which covers statutory agencies, members of parliament and other public sector agencies continue to be a significant pension expense for government. From arms distance the fund appears to be ‘under-funded’. This is the interesting point of the exchange on Facebook with the Chairman.
David King Interesting to see how you sliced the time series Sir. Was this by special request?
Justin Robinson I just went decade by decade
David King Do you have analysis of the pension expense for the same period for public sector separated by MPs, PSs, and other grades? Any info at all?
Justin Robinson the pensions were only broken out as a separate line item from the years shown. we can make some inferences. There is supposed to have been a sharp increase in retirements in the last five years or so.
Justin Robinson I am hoping that a comprehensive reform program is part of the campaign, so we can get buy in from the populace.
David King The concern by many is the existing burgeoning pension obligation.Justin Robinson the unfunded pensions in the public service is a major issue that needs to be addressed. No doubt about that one. With pensions and interest, there has been less flexibility in terms of public expenditure than many think.David King How is the pension managed? Who has oversight? Is it that the government has recourse to fund therefore there is no legal obligation to ensure the plan is adequately funded?Justin Robinson the pensions mentioned are those not covered by the NIS.Justin Robinson the public sector has a fairly large legacy of noncontributory pensions.
Justin Robinson as Philip mentioned persons have legal entitlements that were never part of a contributory scheme.
This is a highly technical issue and one worthy of public discourse to ensure an ignorant public is educated about one of the more hidden liabilities taxpayers and their children will have to honour in years to come. Here is a link to the approved 2017 -2018 Government Estimates. Select the Find option and enter the word pension, the size of the pension expense of government will shock you.
The blogmaster is hopeful the BU intelligentsia will assist with the defogging of the issue.
The blogmaster invites you to join the discussion.