Prime Minister and Minister of Finance, Dr the Right Honourable Keith Mitchell, has reiterated government’s demonstrated fiscal responsibility over the last few years as the primary factor that now enables it to provide relief for those most affected by the economic impact of the Covid-19 pandemic.
Addressing Friday’s Special Sitting of the House of Representatives, Dr Mitchell said the measures outlined in the Covid-19 Economic Stimulus Package announced by the government are only possible because of the vast improvements made in the management of the local economy.
These improvements were manifested through 7 consecutive years of economic growth, a significant reduction in unemployment and 5 consecutive years of surplus.
He said, “Fiscal space and fiscal resilience were recurrent themes as we sought to exercise prudent financial management. It is only this prudent financial management and adhering to fundamental rules that could be responsible for our ability to provide some support to our people in this period of greatest need.”
The Prime Minister provided some additional details about the stimulus package including an unemployment benefits package of about $10 million to be rolled out by the National Insurance Scheme; reductions in the interest rate for the small hoteliers facility operated by the Grenada Development Bank from 3.5% to 2% and the soft loan facility accessed through the Small Business Fund from 6% to 3%.
Dr Mitchell restated government’s commitment to doing its best to mitigate the economic fallout of the pandemic, but noted that the extent of its capacity to do so, while at the same time, meeting recurrent expenditure and paying more attention to the most vulnerable, will be constrained by the significant decline in revenue collection. He said both the Customs and Excise Division and the Inland Revenue Department are reporting collections significantly below their monthly targets.
Acknowledging that government faces the dual responsibility of managing the economic impact of the pandemic while safeguarding public health and safety, the Prime Minister said government cannot be expected to provide for everyone. He encouraged businesses and individuals who are in a position to help persons, to do so. Getting through this crisis, he said, will require solid partnerships and shared sacrifices.
Dr Mitchell said, “The lives of our people are tremendously affected and as a responsible government, while we cannot support everyone, we must provide some relief to those who are hardest hit. There is a perception that government must give everyone what they want and those of us who are in a position to deal with the problem of the day, are turning to government asking, what is there for me? Those of us who have done well financially over the last several years, should instead be asking like John F Kennedy, what can I do for my country at this stage?”
Office of the Prime Minister
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once everyone is not tested there should be no school. listen to the news some persons have the virus but show no symptoms. a heathy nation is a wealthy nation. what is money if you can’t spend it. please use balance. jan
The Covid – 19 Stimulus Package was indeed a bright light at the end of a very dark tunnel. It was presented as an opportunity to “blow one’s own trumpet”? of course, why not… after all, there is a sense of accomplishment among a small minority. (Political colours aside), it could have been so much better had we have quality management, game changers, people with vision and long-term strategic thinkers in place.
It has been conceded that No Government should embark on just giving the people what they want. But it is the responsibility of good government to lay the foundation, creating an enabling environment that will allow the less fortunate to better themselves through long term sustainable employment.
To cite 7 consecutive years of economic growth, 5 years of generating a surplus coupled with a significant reduction in unemployment, is actually a far cry from reality.
The country needs to get back to work within 14 days. Failure to mobilize the workforce within this time frame will result in Grenada being in an economic doldrums for a considerable period.
No mention of restarting the tourism industry on which Grenada receives a very large percentage of it’s annual revenues. Without a planned reopening of the airport, of course, with caution, the economy will fall into an abyss it may never come out from. Also, no mention of when SGU will begin teaching again, the economy is estimated to be approximately 30% – 40% reliant on the international students spending. We need more details. One more thing, cancelling classes for the islands students is ridiculou, there is no community spread, and the number of infections remain at 14, why the delay?