Chastanet says there is no fiscal space

Prime Minister, Allen Chastanet, has asserted that Saint Lucia has a problem of having no fiscal space.

“If you take how much money we have borrowed so far and what the cost of financing that is, -if you assume that we are going to continue running a deficit government of a tune of about $200 million, all we will be able to do is maintain the 82 percent debt to GDP that we have and potentially it might go higher,” Chastanet told reporters.

He said it was necessary to restructure the country so that the money that is being spent will generate growth.

“The only way we can turn this thing around is by growing the economy and then putting a freeze on the existing costs that we have,” the Prime Minister, who is also Minister for Finance, Economic Growth, Job Creation, External Affairs and the Public Service, said.

 

Shares