Budget 2024 will be presented in early December, as Government’s fiscal state demands increase in tax base to 20%
The Browne Administration will be making a change to the annual
budget delivery and will be presenting the Appropriations Bill at the
end of this year, 2023, rather than in the first quarter of next year.
Therefore, the 2024 Budget Presentation will take place on Tuesday,
December 5, 2023.
During this week’s Cabinet meeting, today’s Notes say, the Executive
embarked on extensive and productive discussions with a team of
technical staff from the Ministry of Finance, led by the financial
secretary.
Those in attendance at the meeting reportedly examined the
Government’s current fiscal state as a priority.
At present, the country maintains a tax-to-GDP-ratio of about 16%.
However, the Administration is alleging that the Caribbean
Development Bank (CDB) has recommended that the ratio should be
increased to 25%.
According to the Cabinet, there is a need to bring the ratio to about
20%, and Prime Minister Gaston Browne has hinted, several times,
that this could be achieved by increasing the threshold of the ABST
from 15%.
However, the Cabinet reportedly has decided that “this will be
achieved through a number of methods,” including the reduction of
discretionary tax waivers; more robust collection of existing taxes;
and stricter control of government spending.
And even as the Administration is being accused of using tax dollars
to prop up the Antigua Labour Party’s political campaign in St.
Mary’s South, the Cabinet is now acknowledging the need to ensure
that social programmes are targeted to those most in need.
Meanwhile, according to the Executive, “one of the largest chunks of
government expenditure is wages, salaries, and personal
emoluments, which is approximately $38.6 million monthly.”
Therefore, the Cabinet says, there is a need to ensure that wage
adjustments are kept in line with the rate of inflation. Exceeding
this rate could threaten the Government’s ability to meet its
monthly obligations, the Notes say.
This seems to indicate that pay increases and other overdue
payments for government workers will not meet the level they have
been expecting.
They have been promised a 14 percent pay increase – which,
sources say is really 9 percent, given that a 5 percent raise was given
several years ago. However, the details on this should be outlined in
the upcoming budget.
On an old note, the Cabinet is emphasizing that no new taxes –
particularly the Personal Income Tax (PIT) – will be introduced, as
all efforts will be placed on the improved collection of existing taxes.
Meanwhile, critics note that the Administration “continues to whine
about having no money,” as one businessman puts it. However,
during a recent campaign outing in St. Mary’s South, PM Browne
encouraged nationals and citizens to check him for duty-free
concessions and other financial favours.
This was a direct contradiction of his declaration, during the 2023
Budget, that the Government would be clamping down on such
concessions.
It suggests that Browne’s statement in Bolans was part of his win-at-
all-costs approach to the by-election.
