KING KNOCKS GOVT SPENDING

“Government spending could lose us not only the leg but the arm and leg unless it is reigned in drastically,” King said while giving her contribution on the motion brought under Government business seeking authorisation for the Ministry of Finance to borrow $20 billion or “the equivalent thereof in any foreign currency or currencies” by issue of Treasury Bills to facilitate the conduct of open market operations by Central Bank.

King said, “What we are hearing from the Government side is that they don’t intend to reduce spending. So we can possibly look forward to is a $40 billion budget in the next couple weeks.”

She said, “Who is to say we will not be back here in six months to raise the levels again to mop up some more of the governments mad spending?”

She said something has to be wrong in the economy with the Central Bank continuously increasing the Repo rate over the past year. She said in March last year it was 5.25 and at the end of July 7.75.

King also pointed to the increase in reserve requirements for commercial banks to $1 billion and Central Bank freezing a total of $13 billion of Government money.

Making a “passing comment” about the draft Constitution, King said, “Surely a Constitution has to strengthen the power of the Parliament to control the Executive in its excesses and not make this House more irrelevant.”