British Virgin Islands: Premier and Minister of Finance, Dr. D. Orlando Smith, OBE, said, “Government is now acting as a result of the current global economic climate, which has affected governments around the world in their ability to retain public officers and engage in public investment initiatives”, according to a BVInews.com report.
The cost cutting measures will take the form of a 50-percent cut in performance increments in 2012, a 7-percent cut in operational expenses of individual ministries and departments, together with a cut in the pay package of elected officials. These cuts will be used to significantly boost appropriations to the reserve fund, thereby paving the way for a stronger fiscal position. The Premier added, “Our single most aim, in the interim, is to elevate the Virgin Islands to a position where our fiscal position is strong and we are able to meet the needs of our people efficiently and effectively. However, before we can address all the needs, we need to first do some housecleaning. We need to get our house in order. As a result of this, public officers are expected to maintain or improve on the quality of service they have provided in the past, but they will have fewer financial resources with which to do it.”
The BVInews.com report said that the cuts in both performance increments and operational expenses are consistent with Government’s agenda to improve fiscal management practices and reduce expenditure levels.
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