How much is gov’t set to borrow from Social Security?
Documents from the recent Standing Finance Committee deliberations show that the Social Security Board (SSB) is one of the places the government is eyeing for loan financing to fill gaps in the 2024 budget.
Residents are usually against any attempts to borrow money from the SBB as they believe it is a financial cushion for citizens that shouldn’t be touched. While presenting the 2024 budget in December last year, Premier Dr Natalio Wheatley said his administration will be seeking some $35.15 million from new loans to fund capital projects and acquisitions (infrastructure and services that the government is responsible for).
During the recent budget process, Leader of the Opposition Ronnie Skelton asked the Financial Secretary Jeremiah Frett if negotiations have started for the $35.15 million loan the government needs. Frett confirmed that the process had not started but was scheduled to happen early this year.
Skelton then asked if the loan would be coming from the Caribbean Development Bank, Social Security or one of the local banks. Frett confirmed that it would probably come from a combination of different places including Social Security. However, Frett did not say how much the government will be looking to get from the SSB.
In the meantime, elected leaders complain yearly about funds that were budgeted for capital projects that end up not being used to improve infrastructure in the community. Thus, the D2 Representative Melvin ‘Mitch’ Turnbull asked Frett to outline the amount of monies budgeted in 2023 that have not been utilized and how they will be used for the 2024 budget?
In response, Frett confirmed that the underspend for capital projects usually goes into the consolidated fund and is repurposed in the 2024 budget in different areas under an item titled ‘from consolidated fund’.
D8 Representative Marlon Penn later asked Frett for the dollar amount related to projects or initiatives across all ministries and departments that were budgeted for 2023, that weren’t executed. In response, Frett stated that some of the projects and programmes were still ongoing, and some of them were committed where contracts were signed. But he did not give a dollar figure that represents the total projects and initiatives that weren’t executed in 2023.
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Everybody can start kissing their social security benefits goodbye….
I don’t see myself as wildly in favour of loaning the government my Social Security funds merely to shore up their annual budget.
Are we going to see the roads paved from this? Given the work done so far by the Hon. Mr. Rymer and his predecessor for the past dozen years – highly doubtful.
Are we going to see the elliptical grid transformed or upgraded in any fashion, or using our rich renewable natural resources for power generation – highly unlikely.
Are we going to see improved government services – highly improbable.
Banks won’t lend the money and the SSB shouldn’t either – it’s not in the interest of their members. Government needs to put its financial house in order first, by making the civil service efficient and having its accounts audited. Only when the people see where the money has actually gone can parties decide whether they wish to give more money to Government (or whether they feel it will disappear down the same hole).
Can SSB lend money with existing economic conditions in the market? Can government repay any further obligations? When will government issue further financial statements since 2016? These ppl are all retarded
SSB lending Government money is actually an INVESTMENT! It’s not a grant, it’s a LOAN! SSB’s responsibility is to GROW the contributions to ensure that there will always be enough money for pensioners. The BVI is just a backwards stupid place at times. Has the BVI Government ever defaulted on loans? NO! Has the BVI Government loaned money from BVISSB? SEVERAL TIMES! Has the SSB had any issues in the past being paid back by the Government? NO! The only issue I had was Government taking a grant for $45 mil because a grant is a grant, it’s paid, it’s gone. Nothing is wrong with giving the government a loan, it’s actually a positive for SSB not a negative. When will we mature and grow up from everything being petty and political?
We are doomed. smh
Social Security should stop lending the government money from the people’s old age fund, because they don’t pay back and they does only f**k up the money doing sh* t. No Value that people can see what they do with the money. These mother f**kers need going to jail. Social Security Just Say NO.
Oh sorry I forgot!
Something has to be done so that government cant just constantly be eying and looking to go with social security’s money all the time so.
The comments on these blogs really show how shallow and uneducated people are. SSB should invest your monies in the stock market but not give government loans to build the country while making interest on the monies loaned, which is their job anyway? wow.
We don’t know the rate of return on any such lending/ borrowings and we do not know the government’s ability to repay such a loan at fair value. Does this make sense? We don’t know. That’s a serious problem for the SSB contributors / beneficiaries and the SSB, a body that is supposed to be independent of the government. Seems like an invitation for another COI
Does the SSB prepare and publish audited accounts?
As a statutory body they are supposed to issue audited financials however can you remember the last time you saw audited financials for SSB. The government itself hasn’t published financials since 2016.
Furthermore do we know whether there as sufficient reserves for beneficiary claims for the next 5, 10, 15, 20, 50 yrs or even create more relevant benefits such as unemployment benefits which would have been useful during the pandemic.
SSB is not a lending institution and should not be used as such if government can’t get its act right to convince an actual lending institution to lend it money.
SO IN OTHER WORDS THAT SO CALLED * GRANT * THAT OUR COACH ORCHESTRATED WAS DAYLIGHT EXPLOITATION OF POOR PEOPLE’S MONEY ❓️ YET CNONE OF THE SO CALLED OPPOSITION AINT GOT THE BALLZ TO INQUIRE ABOUT OUR MONEY ,BUT RATHER CHASE THE COI OR CRITICIZE RANKIN OR THE COMMISSIONER WHILE SSB MONEY GOING IN SOME PEOPLE’S POCKET / ISN’T THAT WHERE THE FOOLISH COME INTO PLAY ? SH*T STILL RUNNING IN THE STREETS / POT HOLES GETTING BIGGER AND THATS JUST TWO EXAMPLES OF CORRUPTION , WE GOT CLEAN UP OUR OWN HOUSE FIRST
Noooo ! That’s the taxpayers monies for retirement not your crooked ways
What proof do we have that the existing loans with SS is being serviced by the government. We simply do not know. These are questions the opposition should be asking, but they are complicit in this regards and can also be sited as part of the delinquency.
Hello? SSB? A lot of the older folk who raised and educated the generations in the country are STRUGGLING on their pension which has not increased with inflation over time. Please give them the increase they need to live comfortably and tell the government WHERE EXACTLY IN H**L to go! Peace.