The Gaston Browne Administration Must Explain the $220 Million Half-Year Deficit Despite Higher Taxes

Press Release

I call on the Gaston Browne Administration to explain how a massive $220 million deficit resulted during the first 6 months of 2024, despite record taxation.

The 2024 Budget projected revenue of $1.2 billion and expenditure of $1.3 billion, which would result in a shortfall of $100 million over a 12-month period.

Shockingly, the Cabinet recently reported a $220 million deficit for the months of January to June 2024. This, they claim is the result of $780 million of spending, which far exceeded the $560 million in revenue collected during that period. In other words, the Government overspent collected revenue by 39%.

I therefore ask the Gaston-led Government the following questions:

– How did they amass this massive deficit despite the Prime Minister’s claims of spending reduction, waste elimination and improved tax collection? 

– How did the Government manage to overspend collected revenue by 39% despite the Customs Comptroller, Raju Boddu’s boast of 20% revenue growth during the same period?

– What are the specific areas of overspending which are responsible for the deficit?

– What is the projected deficit for the second half of the year? Is our nation in for another shock at the end of the 2024 budgetary period?

– Is this massive deficit driving the continuing increase in taxes, such as the new Sugary Drinks tax?

– Is this massive deficit responsible for Government’s continued late payment and non-payment of the local businesses it owes?

– Is the Government planning even more borrowing and tax hikes to cover the deficit?

– What specific fiscal measures will be employed to ensure this situation does not re-occur during the next six months and beyond?

It must be noted that no cost of living reduction programmes were launched between January and June, which could explain a $220 million gap between revenue collection and expenditure. Local businesses are still owed huge sums by Government. Further, our rundown infrastructure does not tell a tale of increased spending.

My constituents and, by extension, the people of Antigua and Barbuda are justifiably concerned and demand answers on this massive deficit, which points to poor planning and wasteful spending.  In our local parlance, they are asking “where de money garn?”

Richard S. Lewis MP