The Tribune

By RASHAD ROLLE

Tribune News Editor

rrolle@tribunemedia.net

PRIME Minister Philip Davis yesterday questioned how the Free National Movement plans to fund its proposed $200 monthly stipend for new parents, warning that such promises must be backed by clear revenue sources.

“Wherever you make these promises, you have to be able to show how you're going to fund it,” he told reporters. “So the promises we're going to make, we'll be able to identify the source of revenue to be able to fund it.

“I don't want to comment on their promises, because promises will continue to be made. But at the end of the day, how are they going to fund it?”

His remarks came after the FNM outlined a plan to provide $200 per month in support to qualifying parents, particularly in the first two years after a child’s birth. The party estimates the initiative would cost between $12m and $14m annually.

Mr Davis suggested such commitments could carry broader fiscal consequences.

“I could say,” he said, “I'm going to give you $500 a month as a single mother. So what does that mean? Does that translate into me raising taxes again, or going back and saying, well, the VAT now have to move back to 12 percent. Or I have to place it back on food by five percent to be able to make up for what I'm going to be doing?

“Recognising now, at the end of the day, whatever we do, we are monitored by multilateral agencies like the IMF and their view of our economy matters much for an economy such as ours.”

The FNM said the proposal forms part of a broader effort to ease the burden on families and support workforce participation.

Elizabeth Estates candidate Heather Hunt previously said the initiative would target single-income households, particularly mothers facing challenges returning to work due to childcare costs. She said the party believes the programme can be funded by reducing what it describes as wasteful government spending.

In a statement yesterday, FNM leader Michael Pintard said the initiative would provide direct support to qualifying caregivers, including those who are working or actively seeking employment.

He said the programme would include income thresholds to ensure assistance is targeted and estimated that $12m to $14m annually would go directly to families.

The FNM said the initiative would be funded by cutting consultancy spending, claiming that a reduction in that category could finance the programme without raising taxes or increasing the deficit.

The proposal comes as political debate intensifies ahead of the next general election, with both major parties outlining approaches to easing cost-of-living pressures.