The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Chamber of Commerce's chairman yesterday urged the Government to "set the right tune" on controlling public spending, acknowledging that it will be difficult to leave "monumental footprints" initially in terms of cuts.

Gowon Bowe told Tribune Business: "What they are going to have demonstrate is their intent and proprieties. Between debt obligation payments, salaries and emoluments, and the standard running of government, there is a tremendous amount spent before sharpening the pencil.

"Those will have to be budgeted for in, say, the first six months. It's going to be difficult to make monumental footprints in the initial period but they can set the tune."

Mr Bowe added: "They can look to reductions in what would be called luxury spending and cut those back. Let's say they said that no government cars would be used on the weekends to cut back on fuel costs, or say that in terms of travel the entourage is going to really only be those persons that are truly necessary. These are observable actions which, while they may not lead to significant dollar reductions, they would set the tune."

Finance Minister, K Peter Turnquest, recently told Tribune Business that the Minnis administration would seek to hold spending "in line with the previous year as much as we can".

The former government initially budgeted $2.544 billion in total spending for the 2016-2017 fiscal year, divided into $2.302 billion of recurrent expenditure and $242 million in capital works spending. It subsequently increased recurrent spending without explanation by $232.708 million in the mid-year Budget, taking that to $2.553 billion.

Mr Bowe told Tribune Business: "Their [the Government's] task ahead is really to set spending priorities; what they have to allocate over the next six months, because they are committed, and what action needs to be taken to reduce those items going forward.

"It is an unreasonable expectation for the Government to be able to immediately cut spending. They are just learning the lay of the land so to speak."