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NO Ryan Straughn!

Ryan Straughn and Mia Mottley

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In recent months there have been strident calls from Prime Minister Mia Mottley and Governor of the Central Bank for private players to invest in the country. Even the newly minted President of the Caribbean Development Bank Donald Best has added his voice to the call. There can be no disagreement that investment is a prerequisite for driving economic activity in a country with job creation a key outcome.

Minister Ryan Straughn during his maiden presentation of the ‘budget’ announced Barbadians will be given the opportunity to invest in renewable energy projects. He reported that government will partner with financial institutions to package the investment vehicle to facilitate citizen investment. The goal of Barbados is to strive for 100% renewable energy penetration by 2035.

Any opportunity to invest in the prevailing climate will be attractive to individual investors. In recent years the market has provided very view opportunities to realise attractive returns on investment and savings. The government should be confident that there is pent up demand from ordinary Barbadians to invest in the renewable energy space. In principle the blogmaster supports the planned initiative. However, there is a caveat.

For too long the indefatigable Auditor General has published year after the year the inability of a significant number of state owned entities (SOEs) to publish audited financial statements. The SOE at the top of the list is the renamed National Insurance and Social Security (NISS). It is the most important fund in the country and has not published audited according to the 2022 Auditor General since time immemorial.

leigh-trotman
Auditor General Leigh Trotman

The National Insurance Fund has been established to allow for eligible Barbadians to benefit from programmes designed to provide monetary benefits to seniors and others who meet the qualifying criteria. The audits for the financial years ended 31st December, 2013 and 2014 are in progress. The financial statements for the years ended 31st December, 2015 to 2022 have not been submitted for auditing.

The BU family has been like John the Baptist asking for greater priority to be placed by government to resolving whatever issue is preventing the laying of up to date NISS audited financial in parliament. Here is what the Auditor General stated (not the blogmaster) in the 2022 Auditor General report –This Fund needs to be audited so as to provide the public with a current and independent opinion of the state of the finances of this Institution. 

It is fair to conclude after reading auditor general reports in the last decade that successive governments have placed little to no importance to adhering to key fundamentals of good financial management. It is no stretch to suggest that the indisciplined behaviour by successive governments has influenced Barbadians in some measure – The hip bone’s connected to the backbone, The backbone’s connected to the neck bone...

There is a popular saying that one does not buy a pig in a poke. Why should Barbadians be asked to invest in government instruments if it continues to be less than transparent in financial reporting? A prerequisite to making investments in private instruments is that independent audited reviews are undertaken to ensure a measure of confidence can be derived by the potential investor. In fact it is a legal requirement. There is no reason the Barbados government should be receiving a bligh.

Before any citizen invests in renewable energy stock or any other type of investment for that matter, Barbadians should demand an independent review of the entity or investment vehicle. We have been promised up to date audited NISS financial since the Gun Hill lion was a cub, check BU Hansard to confirm. Do a better job of financial management of SOEs and only then will we show you our money.

Enough is enough!

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119 responses to “NO Ryan Straughn!”

  1. NorthernObserver Avatar
    NorthernObserver

    Lol…the title in the thread gives it away!!

  2. David Avatar
    David

    ICAB raises concerns over incentives, taxes

    The Institute of Chartered Accountants of Barbados (ICAB) has expressed disappointment over the lack of clarity in this year’s Budget regarding business investment incentives, warning that it could hinder Barbados’ future economic growth.
    Responding to the Financial Statement and Budgetary Proposals unveiled on Monday by Minister in the Ministry of Finance Ryan Straughn, ICAB suggested that the Straughn budget has not helped to shed any further light on how it implement the incentives announced by Prime Minister Mia Mottley in her March 2024 speech.
    “Nearly 12 months later, the mechanisms to take up these incentives and the credits have not yet been disclosed. A lack of clarity one year later reduces the impact of these incentives on Barbados’ potential future growth, and ICAB hopes that the government has also examined these implementation weaknesses and has taken steps to address them as they look to fulfil the 2025 proposals to the people of Barbados,” the institute declared.
    The accountants’ body observed that while the 2024 measures included many incentives to stimulate investment and some growth, the 2025 Budget was a socially-minded one with the granting of the solidarity allowance of $300 per person, an increase in maternity leave to 14 weeks for a single birth for mothers, and the introduction of paternity leave of three weeks for fathers, regardless of whether the parents live together.
    “In 2024 and again in 2025, ICAB’s proposals asked the government to consider several initiatives to simplify the process of filing late corporation and personal income tax returns, the settlement of penalties by the taxpayer, and the administration of taxes by the Barbados Revenue Authority.
    These initiatives included zero penalties on returns that are filed in the Tax Administration Management Information System or TAMIS with a nil balance, and a three- to five-day grace period between the filing of returns and the payment of the tax liability.
    ICAB acknowledged that while the minister did not specifically refer to any of these initiatives in his presentation, it took note that he referred to a directive which he will issue at a later date on how the government plans to enhance efficiency and reduce the administrative burden of the Barbados Revenue Authority.
    The institute said it looks forward to this directive, which it hopes will be issued very soon.
    ICAB also addressed the increase in the personal allowance for pensioners to $50 000 and the removal of withholding taxes on investments in government bonds for registered retirement and pension plans.
    It recalled that this year, ICAB and other service organisations asked the government to relook the treatment of pensions, as it was felt that the increase to $45 000 in 2024 was insufficient.
    “ICAB welcomes an increase of $10 000 over the two-year period but is not convinced that it will be received well by all pensioners. Taxpayers who worked hard to maximise their pension benefits during their working life are still being taxed again on the income over $50 000,” the organisation pointed out.
    The accounting entity also drew attention to the minister’s efforts to clarify the rate of taxation for small businesses, which he also addressed at ICAB’s Annual Tax Update in February.
    It said Straughn reiterated that a small business is defined as a corporate entity that earns $2 million or less, has paidup capital of $1 million or less, and has fewer than 25 employees.
    “Small businesses would incur taxes of 5.5 per cent and would prepay taxes twice a year, as compared to those entities that incur taxes of 9.0 per cent and prepay taxes monthly. This statement made by the minister is in line with the Guidance Note 008/2025 published by the Barbados Revenue Authority earlier this year,” ICAB said.
    However, the institute contended that the minister was silent on companies that are approved small businesses defined under the Small Business Development Act.
    It pointed out that under the Small Business Development Act, a company does not have to meet all three criteria to be eligible. “Granted that an approved small business can still access the reduced rate of 5.5 per cent corporation tax and prepayments of twice a year, the two conflicting definitions between the Income Tax Act (which the minister represented will be updated for this newer definition) and the Small Business Development Act need to be addressed.”
    ICAB noted the focus on creating a resilient Barbados, one that can recover from external economic or climate-related shocks. ICAB applauded these initiatives by the government with the repurposing of the Catastrophe Fund to create the Resilience and Regeneration Fund.
    ICAB said it looks forward to the government sharing details on the structure, governance, and controls over the fund before it becomes operational.
    “Finally, ICAB notes that several of the government’s proposals are to be enacted effective April 1, 2025; less than three weeks away. The removal of value-added tax on some items that have been added to the basket of goods, the change in the rate for contributions to the Resilience and Regeneration Fund, and the computation of the amount to be matched by employers are all changes that businesses will now have to contact their service providers, if that expertise is not in-house, to have made to their accounting systems.” (EJ)

    Source: BT

  3. David Avatar
    David

    Govt cuts fees on late returns

    Government is eliminating the late filing fee for zero returns with respect to income tax and value added tax and also reducing the late filing fee for personal income tax returns.

    In addition, there will be a cap on the interest for outstanding contributions to the National Insurance Scheme.

    This was announced last night by Minister of State in the Ministry of Finance Ryan Straughn during the wrap-up of the Budget Debate 2025 as he dealt with administrative matters which he did not speak about during the delivery of his Budget statement on Monday.

    Pointing out that because of how the “system was”, it contributed to a lot of inefficiency, Straughn said: “To alleviate some of these issues and to enhance efficiency and reduce the administrative burden on the Barbados Revenue Authority, with respect to the Income Tax Act and Value Added Tax Act, I propose that from April 1, 2025, to eliminate the late filing fee for zero returns, which is consistent with international practice, (and) to reduce the late filing fee from $500 for personal income tax returns to $100 and for corporate tax returns to $250 with no future requests for amnesty permitted or rebating of these costs.”

    He explained that the reason for this was to get companies and individuals to comply rather than having to write to the ministry for relief.

    Burden

    “It takes up a lot of time and effort to do and therefore we are making these arrangements in order to make sure that we encourage companies and individuals to do the right thing up front and to not have the penalties necessarily be a burden to individuals. Further, any penalties or interests applied to the taxpayer will be offset against any tax refund. So we’re trying to make sure that the system is as efficient as possible and therefore just permit the process to run much smoother.”

    In addition, he said Government will also cap the total interest and penalties to no more than 25 per cent of the tax payable for late filings and interest, which, he noted, was consistent with international best practice.

    “This will allow for a payment plan of up to 42 months to be agreed between the tax revenue authority and taxpayers without the need to waive penalties and interest. If full settlement is achieved within a 12-month period of the outstanding principal taxes, the taxpayer will receive the full relief from the penalties and interest,” he stated.

    Continuing, he said: “Since we came to office, we entered in the arrangement where we settled via Series F bonds first, and then Series J over 42 months. We paid those persons who were owed by the Government over 42 months and we’re saying here, we’re giving you 42 months to be able to do what you have to do and make sure that it is settled clearly in order to make sure that everything is good. You can do it sooner, but we are saying no more than 25 per cent and you enter in the arrangement to be able to settle. We also permit taxpayers a grace period of five business days to make payment after filing personal and corporate tax before any late filing fees, Sir, or interest are applied.” Regarding the NIS scheme, the minister further explained: “For the purpose of settling outstanding national insurance contributions, I also propose to cap the interest to no more than 25 per cent of the outstanding contributions, effective April 1, and this would allow for a payment plan of the same, up to the same 42 months, to be agreed between NIS and the employers or self-employed persons without the need to request a waiver.

    Full relief

    “All outstanding principal contributions within the 12-month period, employers and selfemployed persons will receive the full relief from interest, because we want people to be able to bring themselves straight as soon as possible. The payment settlement framework outlined above, between the BRA and the NIS, relates the total outstanding principal amounts owed to each institution of up to $1 million.”

    Straughn, however, stressed that all requests for waivers above $1 million must still come to the Ministry of Finance for assessment while all taxpayers entering payment plans with the BRA or NIS for the settlement of arrears would be encouraged to set up a standing order or direct debit with the financial institution of their choice while staying current, with respect to the statutory obligations going forward.

    He also announced that businesses entering these arrangements would have to comply in submitting data to various Government agencies.

    “We’re saying that all businesses entering their payment arrangement to settle outstanding statutory obligations must participate in the balance of payment survey of the Central Bank of Barbados, in any business service conducted by the Barbados Statistical Service, any business service survey conducted by the Ministry’s Response for Agriculture, Culture, Labour and Tourism, or any other survey that the Ministry of Finance may determine for a period of five years. We need to get information from you in order to know what is happening with respect to the economy more broadly.”

    Corporate tax reform

    With respect to the corporate tax reform, Straughn once again revealed there were delays with respect to implementation due to constraints of the technology infrastructure.

    He noted that to accommodate these pending changes in both the application of monthly corporation tax repayments for income years 2024 and 2025 and the filing of corporation tax returns for income year 2024, a remission of penalties and interest associated with the late payment of monthly corporation tax repayments as prescribed under the Income Tax Amendment and Validation Act 2024-15 for the payment period January 1, 2024, to June 30, 2025, would apply.

    He also said there would be an extension of the March 15, 2025 corporate income tax filing date to March 31, 2025 to ensure that all companies were able to file their tax returns in a timely manner.(MB)

    Source: Nation

  4. David Avatar
    David

    Case in point.

    Analysts’ views vary on Budget

    By Colville Mounsey

    colvillemounsey@nationnews.com

    The 2025 Budget debate has sparked widespread discussion about its political implications, with some analysts questioning whether it has shifted public sentiment for either the ruling Barbados Labour Party (BLP) or the Opposition Democratic Labour Party (DLP).

    Minister in the Ministry of Finance Ryan Straughn presented the Government’s economic plans, while Opposition Leader Ralph Thorne’s ten-hour response offered a sweeping critique of fiscal policies and governance.

    Straughn’s Budget focused on resilience, sustainability and costof-living relief, aiming to reinforce economic stability amid global uncertainties.

    Political analyst Peter Wickham described the Budget as a “competent continuation of the BLP’s governance,” noting that it served to demonstrate that leadership within the party extends beyond Prime Minister Mia Mottley.

    “Mottley has set a high bar, but Straughn delivered a Budget that suggests the BLP is more than just one person. It was structured and clear in its messaging,” Wickham observed.

    Dr George Belle viewed the presentation as largely defensive but acknowledged that it addressed key policy areas, particularly in the context of global economic shifts and climate change.

    “Straughn covered important areas related to economic sustainability and while there were some interventions for cost-of-living relief, the question is how long people are willing to be patient,” Belle said. University of the West Indies lecturer Dr Kristina Hinds said while the Budget contained some social policy measures, such as paternity leave provisions, it remained largely thematic rather than a detailed fiscal road map.

    “There were important aspects, but the Budget was not an in-depth breakdown of financial strategies. The proposal regarding unclaimed assets, for example, is something that will concern many, despite Straughn’s attempts to explain it.”

    Marathon session

    The Opposition Leader launched a wide-ranging review of Government’s economic management, touching on issues of Government travel expenditure, crime and the high cost of living. Wickham acknowledged that Thorne “scored some body blows,” as these were topics that resonated with many Barbadians. However, he was highly critical of the speech’s length, arguing that it diminished its overall effectiveness.

    “He would have been far more effective if he had condensed his arguments into two hours rather than ten. When people reflect on his response, they remember the length rather than the substance,” Wickham said.

    Hinds agreed, describing the marathon session as excessive and politically ineffective.

    “The length was unnecessary. He did raise some valid points, but they could have been made more concisely,” she noted.

    Belle, however, offered a slightly different perspective, suggesting that the extended speech allowed Thorne to comprehensively cover multiple issues.

    “The long treatment allowed him to touch on every aspect of Government policy that he felt was relevant to the DLP’s case against the administration. While this strategy may have satisfied his supporters, the Government was able to effectively challenge his arguments.”

    Despite the criticisms, the analysts believe that Government maintained its position and was able to counter Thorne’s arguments.

    Belle suggested that the administration “was not forced into any position of surrender” and that its responses were effective in neutralising the Opposition’s critique.

    “The BLP did what it needed to do: sustain its defence and reinforce confidence in its fiscal approach,” he said.

    Public opinion

    Wickham also commented on Thorne’s political strategy, questioning whether the Opposition Leader’s approach made a significant impact.

    “Thorne believes an election could be imminent, but if this was his moment to present a compelling alternative Budget, it didn’t deliver a major shift in public opinion,” he remarked.

    He compared Thorne’s response to past Budget replies, such as Richie Haynes’ famous tax rebate proposal and suggested that the Opposition Leader failed to leave a clear, transformative message.

    Hinds noted that Straughn’s Budget delivery demonstrated technical competence but questioned whether it significantly enhanced his political profile.

    “He has the experience and training and he has been in this role for several years. But the real question isn’t about how well he presents a Budget – it’s about the content and the long-term economic impact,” she said.

    Source: Nation

  5. Bush Tea Avatar
    Bush Tea

    As soon as he quoted Petra, Bushie stopped reading…
    ..cause the Bushman is ALLERGIC to shiite – in all forms.

    Thorne OBVIOUSLY spoke for 10 hours because:

    1 – He was the ONLY VOICE to be heard among 30 others, that had a different view.
    He was therefore right to take 30 times as much as a regular government poppet.
    Bushie would have taken 15 hours like shiite!!

    2 – He had VOLUMES of dirt to expose for public review. In fact, he did NOT even get to touch on a number of REALLY STINK issues….
    Too much shiite to even flush…

    3 – He exposed issues that have otherwise been COVERED UP by the government for yet UNDISCLOSED reasons…. like the HOPE report that we now KNOW they had at the time…

    4 – He was able to generate LOTS of much deserved SQUIRMING and SHAME on the part of MANY government officials – who otherwise sit around congratulating themselves – aparently on making fools of Bajans

    5 – ..and besides – Bushie’s boy ‘Fidel’ used to talk LONG As SHIITE too…. till people fell asleep standing up…LOL

    Finally, if Petra is supportive of our government, then SOME SHIITE is VERY likely to be wrong with them…
    …cause Lucifer does NOT support righteousness,
    …but yet comes across to be LOVABLE…

  6. Lorenzo Avatar
    Lorenzo

    Lorenzo
    Bush Tea would not expect nothing different from you.Mr Thorne,s reply was the worst I had the misfortune to hear.Repeatind himself over and over and shouting unnecessarily.What little he said of substance could have been said in one hour.He is no Mr Barrow,Mr Adam’s or Mr Arthur no of whom spoke for ten hours.To make matters worse when the responses came,Mr Thorne was apparently absent on a walkabout around town.How childish share links but cannot take any. After boring people for ten hours.If I were the government side the next time Mr Thorne speaks,,they should walk out the chamber giving him a dose of his own medicine.Totslly unacceptable behavior for any leader.

  7. NorthernObserver Avatar
    NorthernObserver

    Lorenzo
    Walk out?
    So because the GoB hasn’t paid a whole lots of entities VAT refunds, should the VAT remitting entities begin (walking out) paying them into an Escrow fund?
    Because the GoB entities have barely filed a single Annual report in eons, should all entities (walk out) cease filing reports to Gov’t bodies as they require?
    People who live in glass houses shouldnt pelt rocks?

  8. David Avatar
    David

    Bush Tea is correct in his assessment that Thorne used his TV time to speak on the many issues given he is a political opposition of one.

  9. Lorenzo Avatar
    Lorenzo

    Lorenzo
    Northern I stand by what I said,Mr Thorne,s behavior in my view is unacceptable.As for his accusations a lot of innuendo,which cannot be substantiate you can take them at face value if you like.I heard responses to a lot of his points which he should have been present to hear.Based on your past comments I am not surprised on your position.You sing from the same hymn sheet as Mr Thorne.

  10. David Avatar
    David

    @Lorenzo

    The prime minister was not 100% forthcoming with travel disclosures. Giving an average doesn’t cut it because cheaper trip in the Caribbean will distort the extravagant spend on the farout trips. Also what about HOPE project? She knew the contents of the report last week.

  11. Bush Tea Avatar
    Bush Tea

    LOL
    Poor Lorenzo… Those ten hours of licks may have been a bit much for his BLP burro…

    When the day comes – that YOU are happy with Thorne, we will know that the DLP is not only dead, – but buried too.

    The bush man cares NOTING about ANY of wunna political charlatans… Bees, Dees or Zees….
    WHEREVER there is brassbowlery, Bushie will throw salt – and let the snails and slugs fend for themselves.

    As said before ..
    “Lucifer does NOT support righteousness,
    …but yet comes across to be LOVABLE…”

  12. Lorenzo Avatar
    Lorenzo

    Lorenzo
    Bushie you mean 10 hours of grandstanding ,shouting and innuendo.Where was Mr Thorne when his accusations were answered?If that play acting impresses you then good for you.For me it was extremely poor.

  13. Bush Tea Avatar
    Bush Tea

    OK
    Your perspective is noted and appreciated ‘Renzie muh boy…

    Since you listened to the responses from government – can you tell us:

    – Who is responsible for the missing HOPE money? Did someone respond to the Report?

    – Exactly WHY did the STEAL houses cost an extra $50M? … and what is the FINAL cost per. square foot fuh dum? What Dwight mean by ‘money well spent?’ Wuh he buy…?

    -Who EXACTLY went to Dubai at taxpayers expense, and what were their roles?
    Is it true that there was a ‘scarf management team’? – or dat is a lie?

    Help WE!
    ..cause after listening to the ART (A Ralph Thorne) for 10 hours, Bushie could not grasp what your lot were saying – except that they resented his disloyalty to the BLP – just because the PM had snubbed him… after all..
    He COULD have taken a ‘Most Honorable’ or a Counsul General pick – and left quietly presumably…

    Thanks for offering to explain these things…

  14. NorthernObserver Avatar
    NorthernObserver

    Lorenzo
    I know you are a party loyalist. But please READ with comprehension.
    I didn’t comment on anything to do with RATs time, comments or style. YOU said others should Walk Out, next time RAT speaks.
    My comments to you…when I don’t like something the GoB does, should the response be to put them in purgatory. They starve the people of legally required reports, so should I do the same? They owe nuff people tax refunds, so should we just stop paying or remitting tax?
    When Sincklar was in charge, I said circa 2016, don’t buy Bonds. Was I wrong? I gave the current govt 5+ years, once I saw them behaving like Sincklar I concluded don’t buy GoB Bonds. It is the same product backed by the same Government of Barbados. I don’t care B or D, the Government of Barbados is a continuing entity regardless of who is in power. When the risk negates the returns, I will say so.

  15. Lorenzo Avatar
    Lorenzo

    Lorenzo
    Bushie,anyone can stand up in parliament under privilege and say any thing.What Mr Thorne should do is come out of Parliament and repeat the same charges.Mr Thorne is a good lawyer and in my view would not do so.I remember you being impressed being similarly impressed by the rhetoric of Mr Thompson in the past.Nothing new.

  16. Bush Tea Avatar
    Bush Tea

    But Lorrie,
    Let we forget Thorne fuh now…. and forget Bushie too…!
    ..cause Bushie was ALSO similarly impressed with Auntie …in the past..
    So um may just be a bad bushman habit.

    BUT…
    As a coherent BLP supporter, can you explain some of these issues for us..?
    The ones above is a good start… HOPE, STEAL, Dubai, etc…

    …and also …why are we selling off the little lands we got holding in trust for we children, to rich STRANGERS from over and away…? You understand that?

    If you could help us with these questions we would be eternally grateful… cause you seem to know the answers…

  17. Horsemeat Avatar
    Horsemeat

    First and foremost, it is imperative that all government entities provide up to date and current financial statements as a matter of urgency.

    It CAN be done. Just have to get the right people / assistance is necessary.

    By not providing, one is basically saying that the people and / or systems in place are not competent to.

    However, the RIGHT people can properly analyse the system outputs and provide the answers…if they are paid to do it.

    But are the answers wanted?

  18. ALVIN CUMMINS Avatar
    ALVIN CUMMINS

    Can anyone answer my question? It is my understanding that if you are a known felon you are n
    NOT ELIGIBLE TO MIGRATE , (OR IS IT JUST ENTER) ACROSS THE CANADIAN BORDER. SINCE TRUMP IS A CONVICTED FELON (X 34) DOES THAT MEAN HE CANNOT ENTER CANADA? IS THAT WHY HE WANTS TO CONTROL THE ENTIRE CANADIAN LANDSCAPE BY MAKING IT THE 51ST STATE??

  19. David Avatar
    David

    The Budget in five strengths, five weaknesses
    For the third consecutive year, the Budget was presented shortly after the estimates and with the country in an economic adjustment programme with the International Monetary Fund (IMF). At the outset, let me state that in my assessment, this year’s Budget was an improvement over the previous two presented by the substantive minister of finance, Prime Minister Mia Mottley.
    In aiming to provide an appropriate framework within which to assess the Budget, the existing social, economic, and financial environment should be understood. Arising from the recent discussion on the Estimates for 2025-2026, projected government expenditure (on an accrual basis) is a record of $5.13 billion, estimated taxation revenue (on an accrual basis) is $3.98 billion, with a deficit of $1.15 billion. The deficit is to be financed through borrowing with greater reliance on domestic sources.
    The Budget was presented with optimism of real growth of the economy of 3.9 per cent for 2025. Nevertheless, several structural weaknesses exist in the economy. These include unbalanced sectoral growth with the economy over-reliant on the tourism industry; weak export capacity; high trade deficit; low productivity; and the labour market characterised by a high level of underemployment and low participation rates, especially among females.
    Other weaknesses include lower than desirable levels of private sector investment; high taxes which have a constraining social and economic impact; insatiable appetite for borrowing with the debt level reaching $15 billion and debt service projected at $1.78 billion for 2025-2026 following the record level of $2.05 billion for the previous year; and inefficient state-owned enterprises which continue to be financially burdensome on public funds.
    Challenges also exist at the social level. These include worrying levels of violent and other crimes, and high levels of dispossession and poverty, as families continue to bear the brunt of high food prices and high cost of living. The high food prices make it very difficult for some families to pursue a healthy diet, thereby contributing to a high incidence of non-communicable diseases.
    Strengths of the Budget
    First, the Budget gives due recognition to the administration’s efforts to make the country more climate resilient through the establishment of a Resilience and Regeneration Fund.
    Second, measures aimed at enhancing the protection of the vulnerable in society, like expanding the eligibility criteria for special needs grants and increasing the stipend per child in foster homes, are laudable.
    Other measures, including the $5 million podiatry project for seniors, increasing the income tax threshold to $50 000.00 for pensioners, non-taxable meal allowance for hotel workers, increasing the maternal leave provision from 12 to 14 weeks for single birth and to 17 weeks for multiple births, and paternal leave of three weeks for men, are commendable.
    Third, efforts to stop the slide in agricultural production through the lease-to-own arrangement of 20 vertical farms and 20 broiler tunnel ventilation systems, and the reduction of the water rate for registered farmers from $1.80 per cubic metre to $1.00 per cubic metre can be viewed as moves in the right direction. It should, however, be noted that the small scale of many non-sugar farming operations does not make adoption of the proposed technologies a cost-effective option for them. Also, the adoption of the new technologies by larger farming units will enhance their efficiency and yield greater economies of scale, resulting in some fringe crop and poultry farmers exiting the industry.
    Fourth, the Budget gives recognition to the need to utilise more of the savings in credit unions for productive purposes, namely financing real estate, renewable energy, and tourismrelated projects. The focus on increasing the transformation rate (the rate at which savings are transformed into investment activities) through the credit union system can be seen as an alternative mechanism to the Unit Trust Corporation promised in the 2023 Budget which was never established.
    Fifth, the expansion of deposit insurance to include credit unions is a positive move since it guarantees savers in credit unions recovery of some percentage of their funds should the institutions experience disruption. However, financial regulators must be wary of the moral hazard problem which may be exacerbated with a deposit insurance scheme. Moral hazard relates to the situation where management of financial institutions takes on riskier than normal activities once a measure of protection is provided for the funds of depositors.
    Weaknesses of the Budget
    The Budget is deficient in many ways. First, the relationship between the estimates, the Barbados Economic Recovery and Transformation (BERT) programme, and the Budget was not articulated. An important issue not considered is the impact of the measures outlined on the fiscal deficit, which was estimated at $1.15 billion in the estimates. Indeed, the fact that the revenue-raising measures, expenditure items, and others resulting in loss of taxation revenue are not valued in their entirety means that the net impact of the Budget on government finances is indeterminate.
    Another consideration is the extent to which the outstanding measures in BERT 2.0 and those contained in BERT 3.0 to be implemented later this year will affect the pace of implementation and impact of the provisions in the Budget…. Second, the macroeconomic impact of the Budget was not addressed. That is, the measures were not assessed in relation to key economic variables such as growth, prices, employment, balance of payments, debt, and the fiscal deficit.
    Third, the Budget was silent on the need for a wellarticulated diversification strategy for the economy. The treatment given to agriculture and manufacturing was woefully inadequate, and the discussion on advancing the renewable energy sector was not convincing.
    Minister Straughn’s emphasis on tourism projects reinforces the administration’s economic strategy with heavy reliance on the tourism industry.
    Though the tourism sector is important to the economy through its linkages to other sectors, direct and indirect employment, and foreign exchange generation, including the injection of foreign direct investment for new hotel projects, over-reliance on tourism is very risky.
    The coronavirus pandemic was the most recent reminder of the riskiness of an economic strategy that is heavily skewed towards tourism. The tourism industry might be challenged soon as a result of geopolitical issues and the emerging trade war initiated by President Donald Trump of the United States of America, which could lead to recessionary conditions in the international economy.
    Fourth, the omission of discussions on the status of the transitional arrangement in the sugar industry involving the Barbados Sustainable Energy Cooperative Society Limited (CoopEnergy) and the status of the Farmers Empowerment and Enfranchisement Drive (FEED) programme is another deficiency of the Budget.
    An impasse was declared in the relationship between the government and CoopEnergy in November 2024 by the president of CoopEnergy. Subsequent to the revelation of the impasse, the public was informed that the government was awaiting CoopEnergy to honour its financial commitment to the new arrangement.
    The opportunity was missed in the Budget presentation to update the public on the status of the impasse between the government and CoopEnergy, and the mechanism (and quantum) through which the government continues to support the sugar industry.
    There is also concern about the FEED programme. This programme, managed by the Barbados Agricultural Development and Marketing Corporation (BADMC), is pivotal to the country achieving its objective of reducing the import food bill by 25 per cent. Despite spending in excess of $15 million on the project, agricultural production has not improved, and there has been no reduction in the food import bill.
    The unwise decision to increase the water rate from 66 cents per cubic metre to $1.80 per cubic metre for farmers in BADMC irrigation districts forced some farmers to terminate production and others to scale back their operations, thereby hampering the FEED programme. The reduction in the water rate to $1.00 per cubic metre will be welcomed by the remaining farmers in the programme. However, the Budget should have discussed initiatives to deal with other challenges farmers face in the programme, notably land availability, access to water, and marketing support.
    Fifth, the discussion on public debt was paltry. The administration continues to advance a position, supported by the Central Bank of Barbados, that the value of the debt is not important once the debt-to-GDP ratio is declining. This is a very convenient position to hold, especially since the same administration was so concerned about the level of debt on taking office in May 2018 that it hastily implemented a debt default which reduced the debt by about $4 billion or 26 per cent. On that occasion, the debt was reduced from $15.84 billion to $11.7 billion. It has subsequently increased to $15 billion.
    The reality is that the quantum of public debt is important. Persistent high debt diverts financial resources away from social and economic developmental activities in order to meet debt service obligations. This challenge is magnified when the interest cost of the debt is excessive.
    The country is on a dangerous debt trajectory, occasioned by the administration’s voracious appetite for borrowing. Between June 2018 and February 2025, the administration borrowed $7.3 billion and repaid $7.53 billion. Of particular concern is debt repayment outstripping borrowing by $360 million in 2024-2025 when debt service is expected to surpass $2 billion for the first time. Between the years 2025-2026 through to 2029-2030, debt service is projected conservatively to be $8.45 billion, an annual average of $1.69 billion.
    With fiscal deficits in excess of $1 billion in recent years, the figures indicate clearly that the country will be stuck with extremely high borrowing unless the administration changes its expenditure and borrowing policies…. A sixth concern with the Budget relates to the credibility of the administration occasioned by the introduction of new taxes and fees. Two recent newspaper articles reported the assurance given by a policymaker that there will be no new taxes in the Budget. Such a commitment was very surprising given the overriding objective of a Budget and the state of public finances.
    It is, therefore, understandable if businesses and individuals affected by the following measures feel betrayed: a car rental levy of $10.00 per day to be included in the daily car rental fee; excise tax of 20 per cent on selected salty snacks; an increase in the contribution rate from 0.1 per cent to 0.25 per cent of employees and self-employed people into the Resilience and Regeneration Fund; expansion of the contributor pool by requiring employers to match contributions of each of their employees; and removal of the cap of the maximum insurable earning ceiling to make contributions to the Resilience and Regeneration Fund.
    Seventh, the measures to address the high food prices and high cost of living are cosmetic rather than substantive. They will have minimal impact on the daily struggle experienced by poorer sections of society.
    The main factor inhibiting the administration from dealing with the cost-of-living crisis in a more decisive way in the Budget is the limited fiscal space available because of the record level of planned expenditure in 2025-2026. Persisting with runaway expenditure in a high debt environment attaches crucial importance to taxation revenue. Hence, the administration has very little scope to reduce taxes in order to ease the high food prices and address the cost-of-living crisis.
    Eighth, the Budget provides generalities and statements of intent rather than specific initiatives to advance the transformation of the education system. This is disappointing given the urgency in implementing transformative education initiatives, and the adequate time and financial resources expended in the planning phase of the education transformation project.
    A final deficiency in the Budget is its time-independence, that is, there is no link to the previous year’s Budget. In this regard, the Budget does not discuss the impact (or lack thereof) of the measures outlined in last year’s Budget.
    Notwithstanding the structural and other deficiencies of the Budget, I acknowledge the improvement in the content and delivery of this year’s Budget. Minister Ryan Straughn is deserving of thanks for his effort.
    Anthony P. Wood, a former lecturer in economics, banking and finance at UWI Cave Hill, was a Cabinet minister in the Owen Arthur administration.

    Source: BT

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