Govt urged to stimulate economy

THE government needs to stimulate the economy for it to grow and pay taxes, Director Institute of National Affairs Paul Barker says.
Responding to the government’s announcement of the supplementary budget to address issues highlighted in the Mid-Year Economic Fiscal Outlook report, Barker told The National that the government had to be careful not to frighten the private sector away.
“The tax rates are high, especially when you consider that the government fails to provide the associated public goods such as sound law and order and reasonable all-weather roads and other infrastructure,” Barker said.
“Businesses are left to pay for costly security, back-up power etc and all these push up the costs of doing business and discourage new investment or reinvestment.” Deputy prime minister and Treasurer Charles Abel said there was agreement in consultations with departments and the private sector needed to sharpen the focus on increasing revenue and managing expenses.