In an editorial in Hoy today, Wednesday 1 October 2014, the newspaper criticizes the fact that the National Budget has again failed to be used as a development tool. The editorialist says that the budget lacks a fiscal reform to set the sources of revenue and better distribution of spending. It mentions that the lack of revenue leads the government to borrow more in order to match the high pace of public spending, including paying many people who were removed from government posts but left on the payroll with the same wages as “advisors.” In addition, more than half the tax revenue will be used to pay for the electricity subsidy, interest payments and wages of the bloated government payroll.
“At some point, and let’s hope this is not forced upon us by a crisis, the government and economic stakeholders need to reach a pact for comprehensive fiscal reform that the government resists and the private sector conditions to keep its privileges.”
“The government says there is a fiscal deficit to the call for improved judiciary, city government management or other priorities, but there is an abundance of funds for political patronage. The government needs a fiscal reform that turns the National Budget into an authentic tool for leading development that creates jobs, improves public services and makes government spending better and more efficient,” writes the editorialist.