Browne Warns UPP Proposals Could Trigger Economic Instability
Gaston Browne has warned that campaign proposals by the opposition United Progressive Party could place severe strain on the country’s finances, arguing that the measures lack any clear plan to generate revenue and could lead to economic instability.
Speaking on Pointe FM’s Browne and Browne Show, Browne said the opposition has outlined a series of tax cuts and spending commitments that, when combined, could total as much as $250 million, without identifying how those measures would be funded.
“Now the UPP has not indicated any initiative in which they will raise a single dollar in revenue,” Browne said. “So if you don’t have any compensatory revenue, how can you justify even giving away a cent?”
He pointed to proposals such as a reduction in vehicle taxes and significant salary increases for public servants, arguing that these commitments would widen the existing fiscal deficit.
“If you’re now going to give away $50 million in vehicle taxes and then increase public servant pay by over $100 million… you’re looking at about a quarter of a billion dollars in giveaways,” Browne said.
According to the prime minister, such measures would force the government to borrow more money, increasing national debt and potentially affecting its ability to meet payroll obligations.
“What do you think is going to happen? You’re going to have a larger deficit… it means that your debt will balloon,” he said, adding that public sector workers could ultimately face retrenchment if revenues fall short.
Browne described the opposition’s proposals as unrealistic, warning that voters should be cautious about promises that are not backed by sustainable financing.
“This is a mirage. You’re chasing something that is not real,” he said.
He also drew comparisons to the tenure of a previous UPP administration, claiming that job losses occurred during that period and suggesting that similar outcomes could follow if current proposals are implemented.
“We have seen this movie before,” Browne said, adding that approximately 10,000 jobs were lost during that earlier period.
In contrast, Browne said his administration is pursuing a phased approach to improving wages, including a shift from a minimum wage to what he described as a “livable wage.”
He said the government aims to raise the minimum monthly earnings of public servants to about $2,200, with some workers expected to earn closer to $2,500 following adjustments and reclassifications.
“We believe that that type of adjustment is doable,” Browne said, noting that the Ministry of Finance is currently in discussions with unions on the extent of the increases.
However, he cautioned that wage increases must be carefully managed, explaining that raising the minimum salary requires corresponding adjustments across all pay scales to maintain parity, significantly increasing the overall cost.
“Any increase in the minimum wage affects all public servants… and the consequence of that will be well in excess of $100 million,” he said.
Browne said that without new sources of revenue, such increases would be unaffordable and could destabilize the economy, urging voters to weigh the financial implications of competing policy proposals ahead of the general election.