Cabinet Hunts for $30 Million in Cost-of-Living Relief

Cabinet is looking for $30 million to ease the cost of living, and some projects could be delayed to pay for it, Minister Francis Fonseca says. The government is considering expanding the Grocery Bag and BOOST programmes, relief on utility bills, rent legislation and a change to the income tax threshold.

The cabinet met late into Tuesday night to review the budget.

Fonseca, who is leading the initiative, said the social programmes are among the measures under consideration. “Some of the measures have to do with social programmes that we have, like the grocery bag programme, expanding that programme. But looking at the BOOST program, how can we expand that in a targeted way to ease the cost of living that Belizeans are facing?”

Fonseca said the Ministry of Finance has been asked to analyse the income tax threshold and propose changes to the law. “So we’ve asked the Ministry of Finance to do a deeper analysis and to make proposals on how we can perhaps amend that legislation and provide greater relief to Belizeans.”

He said the Cabinet has also looked at utility bills, where proposals have been made, and at rent legislation, because the cost of housing is a big issue. The money has to come from somewhere. Fonseca said the financial secretary and his team were tasked with reviewing capital and recurrent spending and making reallocations.

“So certain things would have to be put on hold maybe for the next fiscal year. And so that’s what we did. And we reallocated funds from projects and made this a priority because we understand that people need the help at this time.”

The relief comes as the government gives up revenue through excise tax cuts. Briceño has said the government expects to forgo about $60 million by the end of the financial year and is at about $30 million so far. “If things stay as they are, the projection is that we’re going to lose sixty million dollars.”

Briceño said the cost of living was also a concern among leaders at the Commonwealth meeting in Antigua and Barbuda. He said small, open economies like Belize have it harder.