Government ought to never encounter difficulties in meeting its financial obligations so long as it precisely appreciates the reason for its existence. From ancient times the inhabitants of our planet realised that congregating together provided protection from all threats if they stayed in groups and appointed a leader or leaders, who would pool the group’s financial resources by taxation. This system evolved into the creation of laws.
In addition to security, the responsibility of governing extended to protecting the economy and various forms of public service.
The problems our leaders encounter at present were derived over time when they made the citizens believe that they had a right to eg free education now as far as post graduate level, free health care and receipt of services such as electricity and water at subsidised rates. And no government has been able to manage the related utilities efficiently. The consequence has been an ever escalating public debt which never reduces in dollar terms.
But we citizens have no such right. There is simply excessive and unnecessary domination of the economy by the state. Other countries have privatised services such as electricity, water, transport; some even highways, and mandated that the deliverers be efficient. What follows is no drain on the public purse.
Another issue is there has never been a public finance plan that, in good times, puts aside dollars in funds to cater for commitments such as back pay. Hence whenever revenue falls, we hear the cry “no money.” Of course there is never a need for back pay, wage agreement negotiation is a case of wanton procrastination.
When the piper is eventually paid, we will all understand the meaning of recession.
Johnson Singh
Carapichaima