Give gov't employees extra $50K to invest, encourage early retirement - Vanterpool
Fourth District Representative Mark Vanterpool has said he believes one way to reduce the national recurrent expenditure is by encouraging early retirement among government employees.
Recurrent expenditure effectively involves ongoing government spending that does not result in the creation or acquisition of fixed assets. It includes the payment of salaries, among other things.
Based on estimates, the total recurrent budget for the upcoming 2020 fiscal year is $293.45 million.
“It’s time for us to get down to reducing or at least stall the increase in the recurrent expenditure in this country. We have to put proper initiatives to encourage civil servants to perhaps retire earlier and give them some incentive to go out and invest in their own business,” Vanterpool said during the budget debate on Friday.
“Give them a retirement package that is not just retirement alone but give them an extra $50,000 to go and invest. Encourage them to retire early. That’s $5 million a year for maybe 100 persons. Rather than putting it on the recurrent expenditure, we can have our own people invest in their own businesses.”
The Opposition legislator said the territory’s leaders must find ways to reduce the recurrent budget because “one day we won’t be able to pay those salaries at the rate they are going and we don’t know what is happening with financial services”.
Premier and Minister of Finance Andrew Fahie said revenue from financial services dropped by $30 million this year due to the challenges that the industry is currently facing.