Mascoll says Budget is what the country needed

- by Barbados Today March 21, 2023

Government’s senior economic advisor Ambassador Dr Clyde Mascoll has defended the measures outlined in the March 14 Budget, saying they were designed to grant relief and spur economic growth.
Addressing Barbados Labour Party (BLP) supporters at a Christ Church East branch meeting at the St Christopher Primary School on the weekend, he said the only way out of the country’s situation is growth.
“….We are still at that point where growth [is needed] and the beauty of growth is, when the economy grows, the Government does not have to tax you . . . . The only way out is to make sure there is growth. So the major objective of the budget is growth,” he said.
Mascoll argued that contrary to what the last Democratic Labour Party (DLP) administration did, the Mia Mottley-led government is putting the taxes collected to good use by providing services such as transportation, sanitation, health and education.
“When we did not buy a bus for 12 years and an old bus consumes diesel to the tune of $9 000 a month, it becomes a burden to the taxpayer. So when a government in the height of an IMF [International Monetary Fund] BERT [Barbados Economic Recovery Transformation] programme now puts aside $50 million for the purchase of electric buses, of course people feel a sense of relief. So, in essence, what is critical is how your taxes are spent,” he said.
“The recent budget is only a continuation of good governance. It doesn’t start with a budget, it is a continuation of good governance.”
He also pointed to the cap on Value Added Tax (VAT) on gas and diesel as another major benefit to residents, as well as the increase in personal income tax allowance for pensioners from $40 000 to $45 000.
“So rather than increasing taxation, it is a relief and this comes on top of what happened in 2019 and the reductions were generous,” said Mascoll, who also recalled that the Government had introduced a national minimum wage in April 2021.
“So when I look at the budget and I put context to it, I cannot conclude that it is not a good budget.”
The economist said he was especially pleased about the plan for $9.6 million to be made available to the National Sports Council for the creation of 17 mini stadia across Barbados, and the provision of $3 million to support sporting programmes via the national federations.
However, he cautioned that in addition to building the stadia, the Government should “assign some of the money to preparing the turfs”.
“If a fellow can get a good football field to play football on, it can inspire him to become a top class footballer . . . . It is important and very vital to make sure that along with the stadia, that we actually have the playing fields so well prepared so as to encourage people to want to play sports. That is important,” said Mascoll.
In relation to the announcement that a Barbados Unit Trust Corporation will be set up to mobilise private savings, Mascoll said this was necessary to provide a wider opportunity for the creation of wealth and a “good quality of life”.
“To get out of where we are, we need to create wealth and wealth comes from investing. When you don’t have enough to invest as an individual but you can pool with others, that is when you give the opportunity to a wider base of people,” he explained.
“The essence of the Unit Trust [Corporation] is that it will allow for people to put resources into a more secured pool in order to make an investment,” he said.
Adding that the renewable energy sector was one area for residents to consider, Mascoll added: “If you can pool the resources to allow the average man or credit union to invest in the creation of renewable energy then you can spread some of that wealth because the rate of return is very good.”
(MM)

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