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The Prime Minister called it a steady as she goes budget - and we found out why:...

Jules Vasquez reporting
Rounding out what he called a UDP Decade - Prime Minister Barrow presented what might be his leanest budget yet - bereft of goodies and giveaways - it's austerity turned into a hardened fiscal conservatism.

And, while nothing new was offered - the best that he could do was promise that what has been given will not be taken away:

Rt. Hon. Dean Barrow, Prime Minister
"We grasp the nettle with both hands, we rise to meet the challenges, and we will overcome them. This year's budget is structured accordingly and there therefore can and will be no retreat from our signature pro-poor policies: BOOST and Food Pantry; the Apprenticeship Program; the High School Subsidies; the Payment by GOB for students' CXC exams."

And there's also no retreat from Government's enormous debt - close to 100% of GDP:

Rt. Hon. Dean Barrow, Prime Minister
"At the close of 2017, the national debt stood at approximately $3.535 billion, some 93.8 percent of estimated 2017 GDP."

"The immediate goal is to reduce the debt to 80 percent of GDP in the next five years. If Belize can sustain and build our fiscal primary surplus position, and if we can, in collaboration with private enterprise, spark just a few years of higher than average economic expansion, then this key criterion of sovereign economic and fiscal health can be fully restored."

But, government did not meet its targets for economic growth or the primary surplus which bondholders watch closely.

Rt. Hon. Dean Barrow, Prime Minister
"We will not meet the perhaps overly ambitious budgeted Primary Surplus Target of 3.1 percent of GDP which we had set for ourselves at the beginning of the fiscal year. Instead the outturn is likely to be closer to 1.8 percent of GDP."

"The lower than expect out-turn is due to revenue shortfalls arising from weaker than expected economic activity and some slowdown in government investment and some slowdown."

And to increase government's tax revenue, Government is looking to your mobile data purchases:

Rt. Hon. Dean Barrow, Prime Minister
"GST is to apply to the purchase of data services by telecom clients. For some time now, this sector has been in a dynamic transition where revenues have shifted dramatically from voice to data, and with this shift has come a commensurate reduction in GST collections. Making tax application even more difficult is the bundling of services, effectively obfuscating taxable elements from those untaxed. This proposed alteration will simply restore GST revenues lost in this voice to data transition."

And while that is to bring up revenue, Government also has to control expenditure - and that means taming the 431 million dollar wage bill:

Rt. Hon. Dean Barrow, Prime Minister
"The rise in Current Expenditure is driven largely by increases in personal emoluments as provisions have to be made for the award of annual merit increases across the public service."

"Renewed efforts will be made to hold down on the increase in the wage bill by capitalizing on natural staff attrition."

Projections for economic growth are modest:

Rt. Hon. Dean Barrow, Prime Minister
"The Central Bank of Belize projects that the economy should grow between 1.5 percent and 2.0 percent in 2018 due to increased output from the primary and tertiary sectors."

While Capital programs are basically infrastructure projects:

Rt. Hon. Dean Barrow, Prime Minister
"Continuation of the upgrading of the Hummingbird Highway ($11.0 million); Continuation of the Belize City Southside Poverty Alleviation Project ($4.0 million); Commencement of work on the upgrading of new sections the George Price Highway including the construction of a new double lane bridge at Roaring Creek. ($13.0 million). Commencement of work on a upgrading of a new section of the Philip Goldson Highway ($5.0 million); Commencement of work of an new Airport Link Road joining the access road to the PGIA with the e Western Highway ($3.0 million); Commencement of work of New Haulover Bridge ($3.0 million); and Commencement of work on Phase I of the CARACOL Road Project ($4.0 million)."

And to cover the deficit financing requirements Government is sourcing external and domestic source:

Rt. Hon. Dean Barrow, Prime Minister
"The financing needs of the budget amounting to $118.1 million will be met from the following sources: Disbursement of $63 million from Loans already contracted with our multi-lateral development partners to fund our Capital III Expenditure Program; Disbursement of $20 million in budget support financing from the Republic of China (Taiwan) under the on-going bilateral economic cooperation program; and a further draw-down of PetroCaribe financing in the amount of $15 million (which is already held in a GOB account); and Access to some $20 million in domestic financing."

And to round out the bare-bones budget, PM Barrow ended with - not a flourish - but a foray into formlessness:

Rt. Hon. Dean Barrow, Prime Minister
"Our philosophy, the defining economic outlook of the UDP decade, does not envision government as either the problem or the panacea; rather, we view government as the activist enabler."

An enabler - not very able with limited budgetary resources:

Rt. Hon. Dean Barrow, Prime Minister
"This administration will surge ahead now on the current of a swift-moving economy. And our public finances will remain firmly anchored to an always more sturdy bedrock that is the plinth of a people who will ever progress and advance throughout the many years to come."