Antigua gov't struggling to pay workers

THE Antigua and Barbuda government is having a hard time paying some of its workers. In fact, they will have to wait as much as another week to get what's owed to them as the country continues to face financial difficulties.

The Ministry of Finance, Economy and Public Administration confirmed in a statement issued late yesterday that despite the government taking steps to reduce expenditure in several areas, it was still facing problems.

It said payment of wages and salaries actually started last Friday, August 27th, but money isn't available for everyone. However, no indication was given as to which workers are affected by the delay.

"The ministry is aware of the hardship and inconvenience this delay will cause to the affected public servants and their families, and wishes to assure them that every effort is being made to complete the payment of wages and salaries to these workers within the next week," it said, noting that the revenue challenges are not unique to Antigua and Barbuda as governments in other countries are facing similar fiscal situations.

The statement said the difficulties have come about despite "significant reductions to expenditure in general, as the Government implements its Fiscal Consolidation Programme (FCP) to combat the effects of the global economic downturn on the economy of Antigua and Barbuda".

The International Monetary Fund (IMF) in June approved a US$117.8 million Stand-by Agreement to assist the country's FCP. Interestingly, government's failure to pay public servants on time comes as a team from the IMF is in Antigua and Barbuda to carry out the first review of the country's performance under the Stand-by arrangement.

That money is supposed to be disbursed in quarterly installments over three years, provided that a number of mutually agreed fiscal targets are met. Among those targets are achieving a balanced budget; strengthening capacity in the Inland Revenue and Customs departments to improve tax administration and increase revenue collection; and commencing work on public sector and pension reforms.

The five-member IMF team in Antigua and Barbuda now is headed by Dr Wendell Samuel, who is also the Fund's Resident Representative in the Eastern Caribbean.

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