Excerpts from Rt Hon Said Musa Presentation: The Economy When the UDP came into office 6 years ago, the unemployment rate was at 8.5%. Under the Barrow Administration the number of Belizeans who became unemployed rose to a high of 25%; that is a quarter of the country’s work force were jobless. Now, even with the short term temporary low paid labour on streets and drains, the unemployment rate is still double what it was in 2008. When he took office, the Prime Minister boasted that under his watch, the economy would have an annual growth of no less than 6%. Well, for the six years of the UDP that 6% GDP growth has become a phantom. In fact in the year 2009/2010 there was no growth at all. It was what the economists call negative growth. And now in this year’s budget speech the Prime Minister sheepishly avoids any mention of GDP growth over the past year 2013. He was ashamed to admit that contrary to his forecast of 2% growth, in fact the economy contracted to less than 1 percent; a pitiful 0.7%. We had to get that dismal figure from the Statistical Institute of Belize. But the Prime Minister would have you believe “this is a train bound for glory”. When they came into office 6 years ago, the national budget was almost fully balanced. The overall fiscal deficit was 0.63%. Now the Prime Minister is reporting a fiscal deficit of over 2.3%; a deficit of $74 million and a financing shortfall of over $138 million. This financing gap is to be met by borrowing more, especially from the Petro Caribe funds. For next year’s budget, the position is no different. Another huge fiscal deficit and a financing gap of $126 million. Once again the Prime Minister will rely on loans to fill the huge gap between over expenditure and revenue. Once again there is no road to glory. The only road is to go cap in hand to Caracas and Taiwan – ($59 million from Petro Caribe and $20 million from Taiwan, the rest from multilateral loans). Irony of ironies! When the PUP established diplomatic relations with Taiwan, it was this same gentleman who castigated us in the House, branding Taiwan a pariah like Don Emilio Awe who asked the Governor at a cocktail party who is that ugly woman over there? When His Excellency replied, “that is my wife Sir”. Don Emilio was heard to say “she pretty now!”. Again, when the PUP Government negotiated the Petro Caribe agreement with Late President Hugo Chavez, the gentleman as the then Leader of the Opposition fulminated that the Venezuela Leader was posturing as a hegemonic leader of Latin America and no good would come of this relationship with Belize. Now the tables have turned and he is now offering “his abiding gratitude to the Government of Venezuela”.
Posted on: Tue, 25 Mar 2014 23:24:38 +0000
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