Monday, December 22 2014 @ 06:30 PM AST
Contributed by: AleemKhan
Government has demonstrated commitment and fortitude in addressing the fiscal deficit, the CBB said. The adjustment was front loaded, with the shedding of 10 per cent of the public sector work force and the introduction of university fees, along with tax and expenditure measures. Progress has been monitored and adjustments have been made throughout the year.
In a December 16 statement, Finance Minister Chris Sinckler made public the budgetary limits set for state-owned enterprises, to achieve a fiscal target of no more than 7.2 per cent, a saving of 5.3 per cent, on the deficit for the last fiscal year.
Sinckler also provided further evidence of Government's firm commitment to fiscal consolidation: measures to limit tax exemptions are to be introduced in April, special temporary taxes that expire in March are to be renewed for one more fiscal year, and legislative limits on fiscal spending will be brought into force. Fiscal consolidation, improved public sector productivity and the achievement of a low and sustainable fiscal deficit remain the objectives of government's medium term fiscal adjustment programme, the CBB said.
"The servicing of government's external debt presents no challenges, with a ratio of no more than 10 per cent of expected foreign receipts on the current account devoted to interest and repayment. Interest payments absorb almost 30 per cent of government revenues, a proportion which is being reduced with the reduction in short term interest rates," the CBB said.