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Caribbean & Central America - March 2011 (ISSN 1741-4458)

POINTERS

*** BARBADOS CONTINUES FISCAL CONSOLIDATION.  On 11 March, the Barbados Senate passed four bills that give effect to the removal of tax-free allowances for travel and entertainment for employees and the increase in VAT from 15% to 17.5%.
The government's goal is to reverse the fiscal deficit to achieve a small surplus by 2015, and to bring the country's debt-GDP ratio below 100% with the goal of getting it down to 60%-70%.  In line with these targets, the government has announced a 7% decline in government expenditure for the 2011/12 fiscal year, along with a 5.7% increase in projected revenue.
Minister of Finance Chris Sinckler has said that he expects a small increase in GDP for 2010 of 0.3%, up from the 4.7% contraction recorded in 2009.

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