Jun 25 PDP Initial Reaction to Budget
The PDP recognises that much like last year the GSLP/Liberals budget at first sight reflects a balanced budget that does deliver to some extent for both business and the individual. It appears to be a prudent budget and the PDP is happy that economic indicators are positive. It is fair to recognise that the Government on the figures have continued to deliver the robust economy whose foundations were laid by its predecessors. The PDP are pleased to see that this budget delivers extra financial help to many sectors of our community who need it most such as the lowest paid, the disabled, the sight impaired and single parent families to name a few.
However if one starts to drill down on these figures there are some areas of concern:
On the macro picture whilst the CM seems to give it little importance, the increase in Government recurrent expenditure of 5% of £22 million is not insubstantial and goes a long way to potentially wipe out the increase in revenue of £28 million or the reported surplus of £37m. The Government should be careful not to allow recurrent expenditure to spiral out of control as any threat to our economy whether it be Gaming or otherwise, may make it difficult for Government to keep paying its obligations without raising taxes. Very quickly surpluses can turn to deficits and the Government would do well to remember that the economic curve does not always go up.
Media – Police Reports
In a statement released by the Government this afternoon it has been noted that a very serious incident involving a Jet-Ski in British Gibraltar Territorial Waters occurred yesterday. They add that conflicting reports have been made to them, and close contact has been had with the RGP in assessing the information available. It is also suggested that the facts are in the process of being fully determined and when they are, decisions will be made as to how best to react to the incident.
Mr Speaker,
