Cuz Has Spoken

BUDGET FEEDBACK

WARNING! WEAR GLOVES WHEN READING THIS POST BECAUSE IT IS DRIPPING WITH SATIRE AND SASS.

The Honorable PM.

The budget address was delivered on Friday, July 23, 2015. It confronted several areas of concern for Dominica, and the PM used the opportunity to “clear his chest”, for lack of a better phrase, as he “kept it real” with us, his loyal subjects people. Excerpts—and cheeky feedback—are given below (direct quotes are in red).

“We built the new Dominica and we have absolutely no intention of wrecking it.” Indeed, for how can one wreck that which is already broken? In spite of having built a “new” Dominica, the same “old” problem of lingering abject poverty remains. But worry not! We have been appointed a highly qualified Poverty Reduction Analyst to help curb —I mean analyze—the poverty problem in Dominica.

“The dreamers have sought to make heavy weather of Dominica’s debt to GDP ratio.” Oh how convenient! This was precisely the topic of the Panel’s last post; however, it is beyond me how a ratio that creates and separates socioeconomic classes could possibly be construed as ‘heavy weather’. Dominica is $1.047 billion in debt. Perhaps we should pay our ‘Supreme Leader’ – as one of DNO’s commenters dubs the PM (and I hope desperately, but honestly doubt, that it was uttered in jest) – the unquestioned confidence in all his actions that he demands (/sarcasm). “However, debt is relative,” he continues, proving my point. A country’s debt is not so important as its ability to repay it and thrive in spite of it; hence, the ratio. Ah, it is rather endearing how you flatter my naiveté. 

“There are really only three known sources of revenue for a country. These are gifts and grants, which are now becoming scarce; taxes, levies and similar impositions, which are limited in scope and capacity; and, loans, which have to be repaid.” In the scarcity of grants (though he will later say that there are already “commitments from friendly governments for grant financing”) and the common sense rationale of not borrowing when knee-deep in debt, the PM quite eloquently implies the argument that taxation is the solution. Astonishingly, I agree. However, the idea that hiking rates is the ONLY way to increase tax revenue is ridiculous. This, by the way, just so happens to be the stance of economist McCathy Marie (see paragraph 13).

To bolster my opinion, the PM also divulges that the ‘Citizenship By Investment Programme’ (the ECP) is expected to bring in $70 million, while the Value Added Tax (or VAT) will contribute $128.5 million in the upcoming fiscal year. That is to say, if Dominicans have money to spend, they will surely spend it on taxable items and that sum will far exceed the money gained from economic citizenship. How then can it be that the ECP is our best chance of increasing revenue and lowering debt, as has been repeatedly suggested?

The PM continues on a multi-paragraph tangent to justify the terms under which loans were taken by Dominica (and, in so doing, attempts to discredit his unnamed—and perhaps imagined—critics), an issue that is significant on its own but not pertinent to the majority of complaints that have actually been lodged against his administration. Oh no, I and Dr. Thomson Fontaine independently concur that less morally questionable, more reasonable means of garnering revenue must be implemented; of the ECP, Dr. Fontaine says “it is a very sad indictment of the government that, [sic] that is the only choice that they have” (see paragraph 17).

“…a multitude of lives have been touched for the better by the policies and programmes of this Government.” He goes on to name indoor plumbing, student bus fares, higher education, and public transportation to exemplify his point. His illustrations are truthful in that they have indeed materialized. As to whether or not this translates to more money in Dominicans’ pockets, we’re still processing that.

Next comes a plethora of positive growth statistics for which the current administration must truly be lauded: real growth is on the rise in Dominica, says the PM, from 1.7% in 2013 to 3.4% in 2014, and the highest contributing activities are “Public Administration, Education, Financial Intermediation and Wholesale and Retail Trade” (click links for definitions), all of whom have their assets wholly or partly entrenched in the hands of the wealthy or the government itself, in any case. In other words, the rich are getting richer, while the poor…you get the point.

“…an increase in receipts from the collection of corporate income tax more than offset a shortfall in the revenues from withholding tax.” (Again, please click links for definitions.) Could this be because fewer Dominicans are gainfully employed? I’m just asking for a friend.

“For [the] fiscal year 2015/16 the capital programme is $184.2 million funded as follows:
• Local Funds of $51.7 million
• Loans of $33.1 million
• Grants of $99.4 million

The fact that more than fifty per cent of the capital programme is financed by grants, in a period when grants are becoming scarce, is testament to this Government’s success in developing foreign relations that redound to the benefit of the country.” It may be testament to something else but you can ponder that on your own.

The plans mentioned for the agricultural industry are, in my opinion, feasible, sustainable, exciting, and commendable. Any objections may be voiced respectably in the comments.

The numerous tax exemptions with respect to “approved developments” of hotels and resorts are a bit questionable, especially since they seek “to accommodate exemptions on withholding tax [and income tax], on rental income of villa owners, for a period of ten (10) years”, in which echelon the PM is rumored to be one such owner. Of course, that’s just a rumor.

“The assessment so far is that during the fiscal year, the following direct jobs are being created Madam Speaker:
• Two hundred and fifty jobs (250) created in the banana and plantain industries;
• Twenty-eight (28) skilled and unskilled workers will be engaged in the abattoir;
• Twenty-two (22) workers will be engaged full time at the coffee plant;
• Forty-six (46) poultry farmers will now have sustained employment;
• Over five hundred (500) workers will be engaged in the construction of Range/Kempinski Development;
• Placement for thirty (30) new graduates under the National Employment Programme and continuing engagement of 400 interns;
• Ten (10) full-time employees will be engaged in the pack houses and additional officers will be taken on in a part-time basis based on the level of activity.”

Yes, that’s at least 1,286 new jobs. Assuming our unemployment rate has remained steady at 23% (or 16,100 Dominicans) since 2009, that means (rounding off 1,268 to 1,300) about 14,800 persons (or 21% of the population) will still be unemployed. I’ll just leave these numbers here.

The emphasis on specializing local doctors to deal with pertinent conditions affecting our citizens is, as are several other parts of the budget, comforting and beneficial. I hope, in the future, the importance of sponsoring the university education of individuals interested in non-traditional career fields will also be addressed. After all, we do need designers, technicians, chefs, farmers, musicians, historians, journalists, and therapists as much as we need doctors, lawyers, and businessmen. 

As for the Law Revision Act, while it is imperative that our laws reflect an understanding of but not necessarily a submission to modern society and global trends, I do not see why CD-ROMs stating these revisions should be sold and not given for free. 

“One of the areas of concern, Madam Speaker, relates to the willingness of citizens to pay taxes that are due. If those of us, who are required to pay, keep this obligation, Government would be in a better position to provide more goods and services.” I agree wholeheartedly. The success of our nation hinges on our fulfilling our responsibilities as law-abiding citizens of this great nation. We cannot expect to have our rights respected if we do not perform our duties. And we should not have our rights skirted or bargained with for the sake of political policy. 

Note also the contrast in specificity between the accusation of tax evasion versus the description of improvements to physical infrastructure (namely roads, for which you should soon anticipate a highway maintenance tax); the PM stated only that “the police will step up their surveillance” in order to stop defaulters from evading license fees but gave a near-comprehensive list of the road works projects undertaken by his administration, as well as the expenditures involved, all the way back to 2005. Tally for yourself the number of substantiating examples – unwillingness of Dominicans to pay taxes = 1, infrastructural improvement projects for which the government should be praised = 14. 

At least twice, furthermore, he urged us to either figure out a better strategic plan on our own or shut the hell up. Of course, I paraphrase. But still…ouch. And among his last statements lay this gem: “there seems to be the unwritten rule that everything said and done by the government of the day, [sic] must be criticized…”

Unfortunately, sir, criticism is absolutely necessary in the face of policies made by fallible human leaders and of strategies that profoundly influence the daily lives of tens of thousands of people under the governance of a small few. Critical analysis is designed not to undermine or attack they who suggest policies but to refine those policies to perfection and to ensure, through the democratic process of freedom of speech and expression, that these policies remain in the best interest of the people. I mean, Dominica is still a democracy, isn’t it? The disdain that often meets such criticism does nothing but cast shadows of doubt upon the confidence that ought to exist in an electorate for its political leaders. This right to constructive criticism is my inalienable right as a concerned observer and even more so as a citizen of the Commonwealth of Dominica. Since the administration so deeply values the privileges of its people, I am certain that this and other rights of mine and yours shall not, now or ever, be infringed upon (see Spain); instead, may these ramblings of a young adult navigating the political and economic atmosphere of her own country be met with respect as they seek not to assault but critically analyze (see definition here) the policies of a long-standing governing body.

Girlllllll....