Belizean Government To Review Budget Measures

by Mike Godfrey, Tax-News.com, Washington

25 January 2005

Belizean Prime Minister and Minister of Finance Said Musa has pledged to review the tax and spending measures presented in the recent budget after the proposals sparked mass protests last week.

In a statement issued by the Office of the Prime Minister on Friday, Mr. Musa stated that after consultations with various social partners, he is: “convinced that the expenditure reduction and revenue enhancement measures contained in the Budget for financial year 2005/2006 are necessary in order to reduce the fiscal deficit while spurring growth.”

The Budget set a fiscal deficit target of 3% of GDP, and proposed a series of revenue raising measures such as increased levies on businesses and professionals in order to help achieve this.

However, both the private and public sector have been outraged by the proposals and employers and government workers commenced a two-day strike in protest last week.

In response, the Prime Minister has declared that a review of the budgetary measures will be carried out at the mid-term of the financial year to determine the performance of the economy, of revenue collection and of expenditure control.

Subsequent evaluations will be undertaken on a quarterly basis, and depending on their outcome, Said pledged that the tax measures will also be reviewed.

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