The very astute Pedro Silverio is one economist who does not believe everything he reads in the official documents. In his op-ed article in today’s El Caribe, Silverio looks at how the government puts a spin on its spending. Recently, Technical Secretary to the Presidency Carlos Despradel reported that there were indicators that pointed to the correct handling of public finances by the current administration. Among these indicators he mentioned the fact that total expenditures in relation to the GDP were less than those of the previous administration. Silverio says that Central Bank figures show a net increase of 13.4% and he explains that public expenditure cannot be looked at without taking into consideration its impact on the rest of the economy – especially the effect it has on private investment and consumption. While government investment climbed to 36.6%, private investment rose by a mere 1.8% over the same 2002 period, which is to say the push given by public sector investment was compensated by a fall in private sector investment, and the tendency has continued into 2003. As a consequence, says Silverio, we saw the paradoxical situation of the private sector having to make adjustments, in terms of consumption and investment, while the government made no corresponding adjustments to its own fiscal policies. In contrast, the government’s fiscal expansion placed greater pressure on the exchange market, while a massive debt load was simultaneously taken on. These factors, in addition to an increase in the public payrolls, served to create huge uncertainty about the government’s handling of its fiscal policy. The economist says that in practice the authorities’ financial philosophy lacks “harmony” with the role of the private sector, which should be the motor that moves the nation’s production. To the contrary, government officials are not the least hesitant in saying they do not believe in the business, by creating unnecessary conflicts and depleting the climate of harmony that should exist between the private and public sectors. Silverio finishes his comments by saying the government has to understand, once and for all, that it cannot continue to put all the weight of the economic adjustments on the consumers the investors. What is more, what is required is a greater sacrifice on the part of those who hold public office – even though this will go against their own political interests.