Finance Minister Winston Dookeran has recently boasted that the Government's current account surplus has increased from $3.9 billion to $8.5 billion over the last 12 months, which is a 217 per cent increase.
A simple act such as paying VAT refunds will create tremendous leverage in our economy. Every business still operating has VAT refunds owed to it. These sums vary from $10,000 to $10 million in some cases.
The major problem with our economy right now is that businesses are starved for cash. The Government, the largest capital investor, has not started any new projects so there is really no new money circulating to stimulate any activity.
However, paying businesses their refunds will immediately result in a lot of debts to other businesses and people being paid off. New stock items will have to be repurchased. Repairs to plant and equipment, commercial properties, and residences will have to be undertaken-activity will start to take place again. This would then give the Government some breathing room to get its projects moving.
What is the point of Dookeran boasting about all these additional funds he has available, unless we the citizens who voted him into office are going to benefit from this? Make these VAT payments now and get the economic ball rolling once again.
Roger Gordon
Cascade
