<Bz32>Put revenue aside for rainy day, says Oughton
The President of the Senate congratulated the Minister of Finance on a good budget but said Government should be putting money aside for a rainy day, particularly as they have had several years of revenue surplus.
Alf Oughton spoke at the end of the general economic debate yesterday where Senators from both parties, and independents, weighed in on their views of the 2007 budget.
He said: “Money seems to flow into the Government’s coffers without too much effort, though I know that behind the scenes there is a lot of work being done.
“We have again benefited from a windfall of tax revenue — the skill comes in how we use the windfall.
“I come from the old school way, I was always taught to put money away for a rainy day because possibly next year the windfall won’t be there. We have had excellent budgets for the last few years but I also have to wonder when it will stop.”
He commented that one of the big issues will be getting the balance right when it comes to the benefits and drawbacks of economic growth. He said the increase in international businesses meant more revenue for the Government but also brought issues such as overcrowding and increased housing prices.
He said: “We also need to look at the level of government spending, and it’s not just this government, the previous government liked to spend money too.The level of government spending at the moment may not be sustainable.
“I think some of the windfall needs to be put aside for a rainy day or in escrow to pay for large capital projects in the future. The windfall we have had over the last few years is approximately $270 million.”
Bermuda has also benefited from a generous private sector, he said, which made donations and got involved in Government schemes, something that might not always be the case. He added that Bermuda and the Government needed to try to rely less on the private sector and become more self sufficient.
He said: “Its just my opinion and things have been working fine so far but I just think we should be careful and look at better utilising our resources.”
