Barbadian Budget Debate 2019 – NIR at US$1.1Bn up from US$400Mn

• In the budget debate yesterday, the Prime Minister warned that the country can expect six more years of fiscal medicine before the economy can recover fully, less than six months into an International Monetary Fund austerity programme.
• The bread-and-butter tourism industry has been slapped with increases in room rate levies which is expected to generate government revenues of $15Mn. There was also an increase in VAT on accommodation from 7.5% to 10%, which is expected to generate $27Mn in revenues.
• Changes to property tax are also expected to generate revenues of $61.9Mn and there was an introduction of gaming tax; 20% tax on winnings and 17.5% on all gaming establishments.
• On a more positive note, however, Prime Minister Mottley has noted that Barbadians will be able to open foreign currency bank accounts in Barbados from July as the administration begins to loosen nearly five decades of foreign exchange controls.
• Prime Minister Mottley reported that the NIR has risen from just over $400Mn as of early 2018 to $1.1Bn as of March 20, 2019.

 (Source: Barbados Today)