Politics

Austerity Budget, World Renowned Economist say Fiscally Responsible Budget: Lynda Tabuya

Opposition Whip and SODELPA MP Lynda Tabuya says that the 2019-20 Budget is an “austerity budget.”

“Mr Speaker, the truth is, this is an “ Austerity Budget. An Austerity Budget is defined as a budget with policies that aim to reduce Government Budget Deficits through spending cuts, tax increases, or a combination of both. Austerity measures are used by Governments around the world that find it difficult to pay their bills or debts,” she said

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“Our Government is finding it increasingly difficult to operate and deliver on its promises, with $1 billion dollars less than expected in its budget, to pay its $4.8 billion dollars in debt. It is desperately trying to cut costs ahead of payments to our foreign and domestic lenders; debts that have repayments due within this budget cycle,” Tabuya added.

Hon. Tabuya says that it appears that in our haste to develop a Singapore-like economy and borrowing billions of dollars to pour into our roads and infrastructure, we have run out of options.

She said that it is a sad reality is that this Austerity Budget is not a “ fiscally responsible ” choice, but a necessary and painful path we must now face as a nation.

“The truth is Mr. Speaker, our country and our economy is barely keeping itself above water. The vast majority of our citizens are struggling,” she said.

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Lynda later admitted that renowned Economists praise “austerity budgets”, it is also “fiscally responsible.”

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