Two economists in Dominica have given different perspective of the over $680-million National Budget which will be presented to the nation on Tuesday, July 26, by Prime Minister, Roosevelt Skerrit.
Dr. Thomson Fontaine believes that more resources should have been placed into the agriculture sector, while McCarthy Marie is of the view that government should increase the tax on sugar and a large chunk of the budget should be allocated to reconstruction after Tropical Storm Erika.
Dr. Fontaine believes enough emphasis is not being placed on agriculture.
“I think a lot more resources should have been put into the agriculture sector,” he said. “I believe that agriculture is the main driving force of this economy and the budget should have signaled government’s intention to grow the economy, and the way you grow the economy is by growing agriculture first and for most.”
It has been revealed that $25-million has been allocated for agriculture in the budget but Fontaine believes this is not enough.
“I don’t think the level of resources, $25 million for an entire year for agriculture is enough,” he said, adding that if government has to make any major investment in agriculture, at least $100 million is needed a year to really make a difference.
He said the funds should focus on, “providing incentives for farmers in the form of giving them access to inputs as well as providing the market for the agriculture commodities.”
He stated further that the budget should be used to signal government’s intention to grow the economy, “to create jobs and I do not see any of that happening with this Budget.”
“I don’t see how the whole question of joblessness is going to reduce; I don’t see how the economy is going to grow with the way the budget has been proposed for this year,” he explained. “The economy is in a tailspin, the economy continues to decline and we need to put an emphasis in growing this economy.”
He indicated that another concern is the fact that the country’s tax base is not growing.
“The tax base is not growing because the economy is not growing and going forward you need to be able to sustain growth, you need to be able to sustain your own spending,” he said. “If you look at the figures, what is driving this budget is the Citizenship by Investment Program which in my view is not sustainable.”
Dr. Fontaine added, “This might last for two or three or probably five years, but it is not sustainable. What you need to do is grow your tax base so that you can have a sustainable source of revenue, so today or tomorrow when this revenue finishes or goes out, no longer people will want to buy our passports, then the whole things is going to collapse.”
He went on to say that the over $680 million budget is not enough to run the economy for the year.
“I believe Dominica should be operating with close to $800 million to $1 billion budget given the size of the country,” he remarked.
“Our level of grand financing has fallen drastically; we have not been able to expand the tax base of the economy so we are in some serious trouble,”he argued.
Meantime, Marie is of the view that government should increase the tax on sugar.
In last year’s budget Prime Minister Skerrit announced that a 10 percent tax increase will be placed on cigars, cigarettes, alcohol beverages, as well as food and drinks with high sugar content. The new rates took effect on September 1st, 2015.
“I urge the government to increase the tax on all the sweeten stuff,” he told DNO. “They put the tax already, but it is too small. The tax should go up by at least 100 percent…”
Marie believes a significant amount should be allocated to health for education purposes in order to make a dent in the high incidents of Non-communicable Diseases (NCD’s) in Dominica.
According to him, sugar is the main culprit the increase in diabetes, amputations, and even cancers.
“People must eat more fat and eat less sugar,” Marie urged.
Moreover, he noted, that given the situation in Dominica following the passage of Tropical Storm Erika in August 2016, a large chunk of the budget should go towards the reconstruction efforts.
This, he is certain will, create some employment in related fields during reconstruction.
MCARTHY MY BRO
the last time Skeritt raised the tax on sugar that the single mothers need to feed their kids you said you danced for joy .this time he gave your industriy tem million dollars for what i do not understand ,now you said that you told him to raise the price on sugar by 100% you did not mention anything about agriculture that sent you to school in roseau from a very young age which youn never got to climb the lasoie river hill . how grateful are you? one more thing if i a m killing myself trying to stay alive by not eating this or that like sugar does not meam other people should do the same
It’s time to give the weatherman to forecast the economy and the economist to forecast the weather. Both are always so way off the target.
To Graceful&WiseLiving4Elohim,
We know that the farmers before have grown old, and that some of their kids do not want to toil the soil but don’t you think that many want to go into Agriculture? Of course they would, and yes the Government have a part to play,for when the Ministry of Agriculture would have the Finance available farmers would get LOANS to have their farms or let’s say plantations up and going employing people in Agriculture, women work in the industry too you know that.
So you see why The Government is the main offender in killing Agriculture? Think about that.
@Memory July 26, 2016
You should have noticed that I responded to \”Joe\”, and right after me \”foreal\” echoed him. And as Joe said: \”the government will not stop people from working their land\” That is what I agreed upon.
My grandparents depended on their land produce to feed their family–they were people from as early as 1910–and they managed to keep their family alive.
When I went home in 2008, all the farming land was covered with houses–belonging to their children, their grand, great grand, and great great children. Where did they find money to build houses on the land which would be used for farming?
If the young people really want to work their land, it is their responsibility to give that hint to the Government; it is one thing to invest money, and another thing to have confidence that your investment will pay off.
That is what the Government is not seeing through investing in agriculture. Agree with me or not!
I would like the learned or the so called educated people of the country to join in and tell me if I am wrong. I am one of those you call a baby boomer so that means I am from the late 1930’s so I have seen what Agriculture and the farming communities have done for Dominica. I have also seen what it have done for many of you, the younger generation it was in Agriculture that your parents Toiled in Sun and Rain to send you to school, fed and clothed you, and now you have the education they worked so DAMN HARD for you to get you guys are standing back and are not supporting the farmers and the Ministry of Agriculture which needs the finance to make the Industry grow and THE ECONOMY ON A WHOLE you are saying nothing. In Dominica Agriculture carried us for decades, I can understand many of you were not yet born;but you should search for truth and you will get it. You are EDUCATED stand up for the ECONOMY of your Country, tell the Government put more MONEY INTO THE MINISTRY OF…
As I read the remarks of Mr Fontaine I tend to agree with him. Why can’t the Government ( not Skerrit) The whole Cabinet see that Agriculture is the main stay of the Country and thence MUST get the bigger share of the BUDGET in order to make the economy grow?
In Dominica the most important Ministry is the Ministry of Agriculture and then is the Ministry of Communication and Works which includes the PUBLIC WORKS DEPARTMENT. The reason for this is, that these are the Two(2) Ministries that brings in money to the Treasury of the Country. Then all other Ministry can fall in line. Money is POWER and the Prime Minister knows that If he allotted this kind of MONEY into the Ministry of Agriculture, the Minister will be doing so much for the Country, that he FEARS That he will be in the Shadow of the Minister of Agriculture, yes Mr Fontaine is Right that there should be much more money Allotted to the Ministry of Agriculture. History have showed us that Agriculture is what kept us alive.
I swear…
Every time i listen to This Doctor and i use this term lightly
He sounds as though he got his Doctorate two centuries ago and what he learned then is now equivalent with what they teach at the state college
Skerrit and the DLP keep on doing the same things over and over and expecting a different result, there is a definition for that
More taxes? How do u get blood from stone, how much tax do u expect from unemployed people
I think both men made a lot of sense.
Dr. Thomson Fontaine as usual was very comprehensive in his explanations on the allocations of financial resources.
Ian, what are you on? What ever it is can i have an once please.
Dr. Fountaine a budget has two (2) sides (expenditure and revenue) you have yet to mention anything about how you would balance that $100 million that you would put into agriculture, I guess as always you will think about that later down the year. CRAZY PEOPLE
I guess you will have to meet with him one on one re budgetary matters,,for him to make you turn into mincemeat.!!!!THAT HAS BEEN HIS FIELD FOR YEARS,and he knows what he is saying!!!!VERY BRILLIANT CHAP!!!
Thompson stop trying to be relevant…..if the budget was 1 billion you would have stated that it should be 1.5…..I recently read a statement you made saying that government needs to spend less and now you are asking them to budget for more…how many tongues do you have? Dominica may be a big island but its population is small therefor the budget put forward by the government is one that is sound. so next time you have the opportunity to make yourself relevant do it in a positive way and not with mischief and malice in mind.
Of alllllll people thompson fontaine allu listening to?????? smhhh
He Dr Fontaine is better than all the others put together,whether you like it or not!!!HE MAKES ME PROUD TO BE A DOMINICAN!!!His doctorate was not bought on the black market!!!He is an extremely BRILLIANT GUY!!!
You are entitled to your opinion and I respect that. Who are the farmers in Dominica? Most of the farmers in DA has mortgage the farms in exchange of driving seasonal tourist. Those who are not buss drivers have cabaway (rum shop) next to each other competing for the same drunken Joe & Sue.
Why is DNO consulting with McCarthy Marie on this issue? Of all the things he see that could be improved, the major issue he sees is increasing taxes on sugary foodstuff? How much revenue does he think that would generate?
I agree with Fontaine, the thrust of the budget should be to grow the economy through agriculture and tourism. That way you can depend on the strength of your economy to provide services to your people.
But it is more difficult for the purveyors passport to make money selling passports than for them to enrich themselves from economic growth through agriculture and tourism. If they were to become rich, it would mean they would have to work and invest their time and money. It is infinitely easier to peddle passports and make huge sums of money, while killing the economy slowly.
Zandoli, let Mark tel us about music ekonomikz an agriculture Eekonokikz what he graduated in, he says we shud eat more fat like fwacheen , cow skin, pig feet, soucse, fries oily fatty foods kill us wiff more cancer
This government have never focused on the growth sector of agriculture and tourism because there is too much work for them. They are a bunch of lazy opportunistic persons and unless Dominicans realize this it will just be more of the same. we need a definite plan of taking agriculture from the farm to market and placing significantly more of our lands under production. this is the only way that we are going to have a sustainable economy in dominica and become dependent on ourselves.
but alas this government will never do this because they want the populace to be dependent on themselves so that they are able to manipulate them.
AA is the government stopping people from working their land?? As the many Haitians who is stopping them? Everyday has fresh produce selling at the Roseau Market, Thomson need to take some time out and go ask the vendors where they get their produce!!!!!
@Joe July 25, 2016
I endorse your comment. The people who used to work the land are old and dying, the young people want to get rich overnight–that is the problem with agriculture. It is the people of today, not the Government.
you are dam right..who said that the young people want to do farming!! all these politicians are the same,just blabbering,they can input a hundred billion in farming,if the youth them can’t plant ganja they are not in the hard work business,the budget should focus on industries for all the waste mango and other fruits that we have playing football with,from tamarin to kenip, can these items,at one point dominica use have domfriut,this was so great,this is where the country should focus and stop worrying about passport sales,when it end it end
This is a very troubling statement from Thompson Dominican to think about. The UWP always claim to have new ideas to move Dominica forward, but here we have it’s head economist backing on put a $100 million into agricultural. I personally thought Thompson’s suggestion would be place on some new initiative and not agricultural. It shows that the UWP has no plans and new ideas to move this country forward if they were leading Dominica.
You have a SERIOUS PROBLEM with you Red head,to believe that $100 000 000.00 in a dead agricultural industry will EVEN REVIVE IT….It’s not the GOOD DOCTOR who killed agriculture, it’s the lazy ,corrupt gang you see as Gods….It shows how shallow,inept,infantile,lazy and backward,you and the gang think…By the way can you tell the bloggers what is our main export?Is it passports?Are you not ashamed!!Well done Dr Fontaine, but $100 000 000.00 should at least start something in agriculture!!!!
Engineer you must be a J….A..The world over is agriculture based, Dominica made itself on agriculture, you were sent to school because of agriculture. In every country whenever farmers are booming the country does a lot better. Tourism is seasonal, passport selling is going to dwindle , if the people don’t have money to spend the TAX INDUSTRY will for sure be no more. The only thing this Government has done in this country is sell passport and tax people all over their bodies.
Mr “Engineer” stop insulting the intelligence of ENGINEERS. I am not too sure you are one. You lack basic Economics 101!
i honestly believe,and please tell me if im wrong…the reason why this government does not invest in agriculture is because farmers do not pay tax on their sales,but we have to pay tax on everything else,so its a balance.
all other businessmen people have to pay sales tax,but not the farmer,huckster,fisherman ect..this is why this government refuses to invest in theses descent and noble occupations.
Just saying – Why don’t they just tax the farmers then?-maybe by a smaller amount compared to other citizens. Would that not help improve the industry? Will there still not have a win win situation if agriculture is improved?
so what are you saying about the international airport?.