Everyone else saw the economic downturn coming, apart from the Government, according to Shadow Finance Minister Dr. Grant Gibbons.

In an attack on Government economic policy, Dr. Gibbons claimed the UBP had sounded the warning bell at the budget debate with Government's proposed increase in spending this year of $74 million - and the additional borrowing of $50 million to fund capital projects - even though the economy was slacking.

At that time, Dr. Gibbons said he called those actions irresponsible, and not prudent.

He said: "Government should not have been surprised (by the downturn) the writing was on the wall and everyone else saw it coming."

Dr. Gibbons was speaking after Finance Minister Eugene Cox yesterday announced a $25 million, or four percent, shortfall in estimated revenue for this fiscal year, and a zero growth in the Island's economy.

But, Mr. Cox, speaking at a press conference, said it was expected that the shortfall could be made up by cost-saving measures.

"In response to the revised revenue outlook, government has implemented a series of cost-saving measures including a moratorium on non-essential overtime and non-essential overseas travel, placed a funding freeze on vacant posts, and suspended purchases of non-critical capital items including furniture, equipment and vehicles," Mr. Cox said.

Mr. Cox said the $25 million shortfall would not lead to increased borrowing - beyond the additional $50 million already budgeted.

Dr. Gibbons said Mr. Cox should plan for the worst case scenario, and that the shortfall could be more precipitous than the estimated $25 million, if the situation in the US continues to deteriorate.

Dr. Gibbons, in speaking of the economic deterioration even before September 11, pointed to a number of indicators including the decline of the retail sales index, as well as drops in visitor arrivals and expenditure dating back some years, the 26 percent decline in the number of exempt companies incorporated in 2000 and the appreciable decline in the balance of payment surplus.

Dr. Gibbons concluded: "To suggest all of this since September 11 is clearly bogus."