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