Senator Carlos James has delivered a scathing critique of the current administration’s financial leadership, warning that St. Vincent and the Grenadines is currently experiencing a significant “economic drag”.
James argued that by slashing capital expenditure and halting major projects, the government has stifled the “trickle-down effect” necessary to keep the economy moving and provide income for workers like contractors, carpenters, and tractor operators.
James further challenged the government’s use of the national debt as an excuse for the lack of spending. He clarified that many of the loans borrowed for disaster recovery such as those for volcanic eruptions and hurricanes are low-interest “good debt” with moratoriums lasting up to 10 years, meaning they are not currently a burden on the treasury.
Instead, he attributed the lack of funds to a “lack of creativity” and leadership in the Ministry of Finance, stating that the government has failed to generate enough revenue-earning measures to replenish the Consolidated Fund.
Furthermore, he noted that despite high inflation and rising utility costs, public service unions have remained silent on the issue of salary increases, which he believes are justified by the current economic climate.
