Upward onward: Bajan excellence 2030
A note from our Territory Leader
Ross Parker
Territory Leader
T: +1 (246) 626 6841
E: [email protected]
With little time to anticipate the budget measures from its announcement last
week to its delivery this evening, Barbadian individuals and businesses likely
focused on what new tax measures may be implemented as we embark on a
second IMF programme.
It was clear from early in the speech that the Prime Minister's focus was on
transforming the Barbadian economy and there was an early commitment to no
new taxes. Her Mission Transformation follows her government's original
Mission Critical on coming to power in 2018 and swiftly addressing the
restructuring of the domestic and international debt in 2018 and 2019
respectively. That was followed by Mission Survival as the nation met the
challenges of COVID, Hurricane Elsa and the ash of La Soufriere in 2020 and
2021.
As we emerged from those clouds, the inflationary pressures of the post COVID
global supply chain and energy price hikes following Russia's invasion of
Ukraine in February 2022 posed new challenges.
Despite those pressures, the economy benefited from the easing of travel
restrictions and a recovery within many sectors, leading to a surplus beyond the
Government's target. Some of that surplus will now be used for the early
repayment of 5,407 individual bond holders.
The Mission Transformation budget contains a broad range of initiatives and
commitments, including;
Economic growth - incentives for the film industry, additional funds for
marketing and support of airlift targeting the summer period, as well as
a temporary reduction on fees for Caricom air travel.
Investment opportunities - the creation of a Unit Trust Corporation and
the reinvigoration of local capital markets. With bonds on demand
trading and reverse options with the stated objective of creating a
domestic yield curve.
PwC | 2023/24 Budget review | Barbados
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