One of those dissident politicians from last year, Hon. Mark Espat, area representative of the Albert Division who holds reign over the Ministry of National Development, Investment and Culture, met on Wednesday, March 15, with worker and private sector reps in his capacity as the chairman of the newly resurrected National Economic Council (NEC).

The Prime Minister, Hon. Said Musa, has sat as the Council?s chairman and its last meeting, we understand, was held in December 2004, when there was ?friendly fire? between Government and union and private sector reps (?social partners?), according to the ruling party?s newspaper, The Belize Times. The meetings stopped and the NEC went into dormancy for over a year, while the so-called ?social partners? remained at odds over public finances.

In a presentation made to the council members Wednesday, Financial Secretary, Dr. Carla Barnett, and Central Bank Governor, Sydney Campbell, reviewed Government?s financial position and previewed the new budget.

A release issued by the Government of Belize today claimed that GDP grew 3.1% in 2005. It also reported that Government?s overall fiscal deficit is 3.9%, well above the deficit in the approved budget, which was 2.8%.

The release noted that the 2004-2005 deficit was 8%, and not the 4.2% Musa reported last January. Similarly, a deficit of 2.14% reported for 2003-2004 in the previous year?s budget turned out also to be 8%, according to later reports.

While GOB reports 3.9% for the projected deficit for the current financial year, which ends March 31, 2006, that figure may well change in later reports.

Another noteworthy bit of information is how much GOB plans to collect in tax revenues. The projections indicate that tax revenues, overall, are due to increase $40 million over the next budget year, roughly equal to increased collections in the category of the goods and services tax or GST, slated to take effect on July 1.

Taxes from the sale of goods and services would increase $21.3 million this year, but $40 million next year, GOB?s report claims.

We understand that when this was questioned, in light of GOB?s claims that the GST would be revenue neutral, GOB officials said that the large increase is due to ?reclassification of the excise tax.?

Government is projecting total receipts, including revenues and grants, of $598 million for the new budget year and a deficit, again, of under 3% GDP. This time, the deficit figure has been tagged below 3%, which is an international benchmark for a suitable deficit.

How is GOB performing on its current budget? The reports made this week suggest that there is a $20 million shortfall, overall, in tax revenues and furthermore, spending appears to have been in line with original projections rather than the adjustments we were told were made in May and July, after successive ?realignments? of the budget.

Some NEC members have expressed concerns that the budget does not reflect the bulk of debt servicing that falls under amortization, including huge payments on bonds. Amortization is now treated as a ?below the line item? and not factored into the overall deficit.

Apart from the reading of the budget, we understand that two other matters to be dealt with in today?s House session are GOB?s purchase of Novelo terminals for $8 million and a $12 million OPEC loan for the Southside Poverty Alleviation Project.