No cash flow problem, says Barbados PM
NO NEED to worry; those delayed tax refunds in Barbados will come eventually.
Some Government departments in that country may not be settling their payments on time, but Barbados Prime Minister David Thompson says there is no cash flow problem.
Responding to queries about the non-payment of Inland Revenue refund cheques to hundreds of taxpayers, and whether this was due to a cash flow problem, Thompson said after his nationally televised press conference: “It is obvious that there are people who have got back their refunds, but it may be the way in which the payments have been staggered. But I would not say there is a cash flow issue with Government at this time.”
Said the Prime Minister: “What may happen is that spending priorities may often change in times of economic difficulty, so that departments may find that the bulk of their resources may have to go towards the payment of wages and salaries and can’t be used for other programmes because departments are watching their pennies until the end of the financial year.”
Thompson, who is also Minister of Finance, suggested that this year was not the first time that the department had been tardy in the payment of tax refunds.
“As part of our attempt to control expenditure, we have had to, in some cases, reduce the warrants given to ministries. So it is a combination of factors,” he added.
The Thompson administration has come under increasing pressure to reduce public spending, as tax revenues have fallen significantly because of reduced economic activity in the country.
Thompson said he felt that the public’s understanding in the matter had been “helpful”.
He added: “I do know that there are some challenges that may in some cases delay payments…but it works itself out.
“We have been through this before, even in times of plenty, in 2006. When you face tough economic times, the way in which Government finances its programmes changes. And therefore, you have that problem.
“What we don’t want is a situation where people who are owed money by Government don’t get it. And only two weeks ago I saw the Commissioner of Inland Revenue and she explained what some of the challenges were.”
