Posted by: Armel | March 9, 2008

SHOW ME THE MONEY !!

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GOOD NEWS FOR SOME, BAD NEWS FOR OTHERS ? PROBABLY !

Where exactly is the promised money going to come from? We heard time and time again the Economy and Finances Ministry come out and state that it was virtually impossible (Currently) to raise the Gov’t workers salaries based on the numbers at their disposal. Essimi Menye told the parliament on two different occasions that it was going to take some time and other adjustments, if there was to be any kind of increase of gov’t spending on payroll.

But starting April 1st, housing allowance for State employees will also be raised, customs duties will be suspended on some imported basic commodities like fish, milk, rice, flour and wheat. In addition, the customs duty on imported cement and clinker will be reduced. All of it at the same time! How can all this drastic reduction in gov’t revenues be implemented while raising the State expenditures?                                               

As in Accounting “…Everything should be SQUARE..”: if the annual budget has already been allocated, where will they find the ressources to offset this additional spending that was not accounted for -at the time the annual budget was voted- to begin with? It’s all good news, but as we should remember, this square has to be closed somewhere.

The actors of the private sector should be nervous right now. Because it would not be surprising to see a series of raises in taxes. They might do it trough the TVA, the Corporate Tax, the Revenue Tax, the Income Tax etc.. Let’s just hope the local business men & entrepreneurs won’t have to foot the bill for this stunt.

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