SLP PROPAGANDA FACT CHECKER – LIE DETECTOR
UWP brought you growth in 2006-2011 except in 2009 when
the whole world suffered decline. Growth was impossible.
Growth was projected for 2012 by the IMF. It was on the
basis of this projected growth that VAT could have
generated more VAT for them to fund the expanded levels
of expenditure of their deficit budget.
But VAT windfall won’t come because on the day following
his victory the new PM sent us into economic panic
warning us of hard times to come and suggesting belt-
tightening to us. We obeyed and starting cutting on
consumption. VAT on goods and service came in which
increased the prices for us further causing us to spend less,
border line small businesses folded, but not without
increasing unemployment. Those losing their jobs would
consume less fearing a long period of unemployment.
Further, those remaining in the work force responded with
further spending cuts to save more in the event that they
lose their jobs like their less lucky former colleagues.
With consumption tax/VAT revenues falling as a result of
the contracted consumption levels; government revenues
decreased while expenditures increased over 2011 figures.
With the above, don’t you expect a fiscal crisis? Duh!
If that was not bad enough millions were spent on social
programs like cutting grass which has negligible position
impact on economic growth. After a year of economic
decline in 2012, we were bound to get worse in 2013 as the
2012 decline would have scared households even more
forcing them to further cut on consumption.