The Prime Minister today revealed that there will be no national budget just yet while her administration hammers out a comprehensive package to buffer the economy against the expected shocks of the virus, COVID-19
“Yes, there is no budget,” she told media managers at a meeting held at Cabinet Office.
Over the last few weeks, lawmakers have been debating the 2020-2021 Estimates of Revenue and Expenditure, but Mottley explained that her financial package will be delayed to “prepare all the scenarios so that the Government can play that supporting role to the entities and businesses and workers likely to be impacted”.
Last Monday, as she addressed the nation after meeting with key figures on the island’s response to the virus wreaking global havoc, the Prime Minister estimated there could be some loss of jobs from the impact on the virus on travel in particular.
The Prime Minister and lead Minister of Finance said that after discussions with representatives of the Caribbean Development Bank (CDB) and the Central Bank, three different scenarios were developed showing the impact of a 25 per cent decline in tourism revenue over a three-month period, a decline of 50 per cent revenue over a three-month period and a severe case of a decline of 80 per cent in tourism revenue over six months.
Prime Minister Mia Mottley (second from left) addressing Government officials and media personnel this morning. (BGIS)
This, she suggested could translate into job losses, a reduced work week for tourism workers and a drop in earnings for suppliers.
Earlier this week BHTA chairman Stephen Austin told Barbados TODAY that 41 out of 81 hoteliers reported a $1.2 million loss in revenue, due to the cancellation of 2,853 rooms for the month of March.
Mottley said this morning that Government was in the process of collecting data and meeting with various industries.
The Prime Minister said: “We met with tourism [players] already this week, we are meeting hopefully with the banks on Sunday, we are meeting with others… and the IMF [International Monetary Fund] on Monday, in order to be able to settle what we deem is a clear survival package for everybody to keep their head above water.”
She assured the country was in a much stronger position to buffer any fallout with international reserves at $1.544 billion and an improved debt profile which shows a reduction from 177 to 119 per cent Gross Domestic Product.
“So we have more strength to fight it, but Government is in the process of collecting the data and meeting with the individual sectors.”
The Caribbean Development Bank advised countries this week to formulate a fiscal response to COVID-19.
Director of Economics Dr Justin Ram proposed a policy response on the demand side.
Dr Ram said: “We have to think about how we support the economy at this time.
“We have to think about how we support labour markets and how we support the private sector.
“Governments should sufficiently think about resourcing our hospitals and primary care facilities at this point with the right amount of labour and financial resources.”
Prime Minister Mottley has promised to update the country next week on the economic plan. sandydeane@barbadostoday.bb
