During the NDC’s term of 1990-1995, Grenada embarked on its only successful structural adjustment programme, which was totally homegrown.
That effort was led by then Finance Minister George Brizan and his technical team that included Hon. Anthony Boatswain and Richard Duncan. Under that programme, Grenada moved from being debt-ridden and on the blacklist to having AAA credit rating in 1995.
Keith Mitchell, on assuming office in June 1995, immediately set about squandering the gains of the programme. He went on a spending spree, dishing out sovereign guarantees to crooked, pseudo investors like EJ Miller and Vicktor Koseny, and to dubious ventures like the Garden Group Ltd and the ill-fated chicken farm in Victoria. Soon, Grenada’s national debt ballooned from $372 million in 1995 to $2 billion in 2008 when NDC assumed office. Painfully, our people had nothing sustainable to show for this.
In the midst of the worst global economic crisis since the great depression of 1929, the new NDC administration in 2008 inherited a depressed and highly indebted economy. Despite the propaganda spewed by Mitchell and his surrogates, the NDC under Tillman Thomas was able to stablise the economy and manage our debt servicing to the extent that on 20 September 2011, Finance Minister Nazim Burke signed agreements with the World Bank under which Grenada received funding for its single largest project approval ever.
Over $70 million was received and allocated to infrastructure and rehabilitative projects including the Lance and Hubble bridges, Holy Cross and St Patrick’s Anglican schools, the Hillview and Cadrona homes for the aged, Sendall’s Tunnel and River Road rockfall mitigation. Over $13 million was spent on social safety net programmes, like public assistance for the elderly and transportation for students. Almost $8 million was allocated to the energy sector.
For all his empty boasts, Mitchell has not been able to attract this kind of trust and confidence from outside lenders and donors. In fact, in every budget presentation since 2013, the figures show that actual revenues from grants have fallen way below estimates.
Government’s reaction to this failure has been to raise revenue by over taxation. Mitchell at one time said that a government whose main source of revenue is taxation is following a “stupid philosophy”. This is exactly what he is doing because, between 2013 and 2017, there were 32 new and increased taxes, duties and fees and no sustainable productive initiatives.
Just as we thought we were going to be relieved from the austerity measures, we are now faced with higher property taxes, higher cost for passports, higher NIS contributions and soon, higher VAT. At the same time, salaries have not moved in years. The result is that people’s spending power is significantly constricted.
Meanwhile, Mitchell continues to skew the figures to give false impressions. The latest report of the Fiscal Responsibility Oversight Committee clearly exposes this fact. When stating the national debt, he deliberately omits debts of state-owned entities. When stating the overall surplus, he deliberately omits monies paid as interest on loans.
If the figures are honestly presented and analysed, they will show that we are performing worse each year. The figures show that between January and June 2019, the Customs Department collected $2 million less than it did for the same period last year and Inland Revenue Department collected $3.1 million dollars less in the same period. At the same time, the amount received in grants was $56 million less than expected. These statistics confirm that it is indeed a stupid philosophy to rely on taxes as the main source of revenue, yet, there is no indication that government intends to do anything to boost real production and spur economic activity in the country.
Another boast of government is reduction in expenditure. That means government is spending less. Between January and June 2019, expenditure was recorded at $69.5 million less than budgeted.
If our economic situation is as healthy as government claims, how come then, there is much deficiencies and hardship in the areas of education, healthcare, workers’ emoluments and infrastructure? The answer lies in the reduced spending.
The evidence is clear, that Mitchell is prepared to spend less and sacrifice the wellbeing of the people in order to boast of favourable figures and to build his election war chest with our money. Our roads are in a deplorable state with the Inland Revenue Department collecting duties from the importation of tyres and spare parts (more pressure). The healthcare sector is in free fall with an exodus of nurses and doctors; while expired medicine is being administered to patients at our hospitals. Schools like Bishop’s College, both of the TAMCC campuses, the St David’s Catholic Secondary School and many others are in abject disrepair. Others, like the GBSS, lack decent furniture for students. The free schoolbooks programme is now destroyed, while parents are asked to pay school fees at the beginning of each school term.
All of the above conditions exist while government boasts the brazen lie, even in the Throne Speech, that Grenada has the fastest growing economy in the region.
The truth is that this Mitchell government is inept. To mask this ineptitude, they are prepared to cook the figures, mislead sacrifice the wellbeing of the nation by refusing to spend in critical areas. The Grenadian people are already on to them. Their time is up with the tomfoolery.
Well the Grenadian people aren’t complaining cause they gave them a clean sweep in the elections
The Grenadians that vote for this UFO …. are still convinced of the UFO figures.
Mr Mitchell does have love for his Country all his investments ste overseas yet fellow citizens cannot see thst this guy has nothing good to offer except pie in the sky…
In reading this news article, what comes to mind is how many $ Billions has this Keith Mitchell led Government piled on the backs of our children ?? BILLIONS !!
Do they even care; surely, likely NOT !!
Just recently, this NNP Group advanced itself ( BORROWED ) near $ 120 million for its 2019 Budget; where they indeed over-spend tens of Millions, wasting near those sums in lavish global jet travels – with groups beyond reason except to splash like Royal Dictator.
Up to 14 Male escorts on some trips, while taking off Solo on other sneak off – trips. Something does indeed smell of Epic Corruption Mr. Prime Minister Keith Claudius Mitchell. Time to Un – Mask to get to the Truth, not all Lies & more LIES.
Legalisation of medical cannabis would fix this problem! But Mitchell might squander that as well.
The need to be transparent and honest within a government is paramount to the success of a country. If the prime minister is also the financial minster then there is a big problem already being there is a conflict of interest and no one to be accountable to apart from himself.
I can’t believe that the oppersition parties would allow this as its unefical and unpractical. A lot of this could of been avoided if the government of Grenada acted like one and challenged every motion put forward from Dr Mitchell and his party in the house of representatives
Let me remind you that the government of Grenada is under the constitutional law of the British realm and that its government and house of representatives should absolutely make sure the law is static and the minute it isn’t should be brought before the supreme Court. It seems Grenada takes no account for this and has let its government run wild letting Dr Mitchell do what he wants to his own law rather that act with transparancy and honest to sovereign law which to me the whole of the Grenadian government has failed the people not just by not understanding politics, that the people have been duped into thinking that this is how democracy works. There are no mandates to these parties no forward thinking or planing for education healthcare welfare infrastructure nothing which is the most disappointing thing because i can’t differentiate between the parties leading me to believe its all kurpt and needs a independent enquire into how Grenada is being run.
Understanding politics (which seems to be the problem) would prevent such things happening in the future. And that every decision made by minsters of the leading party should be under scrutiny.
i could go on all night about this subject being of grenadian heritage and is very passionate about the future of Grenada if you would like me to do a full column on this i would love to express my opinion of a outsider who loves the country and wants better for my people