The Government last week obtained Opposition support to increase from EC$35 million to EC$50 million its overdraft at local commercial banks.
The Opposition, however, told Parliament that their support was solely so that public servant could be paid money they were owed by the Government.
Last December, Parliament authorised the Minister of Finance (Prime Minister Dr. Ralph Gonsalves) to borrow up to EC$35 million from local commercial banks between Jan. 1 and Dec. 31, 2013.
However, Gonsalves told Parliament on Tuesday that the Government needed to increase the debt ceiling because the EC$35 million overdraft was not enough to meet current obligations.
He said this resulted for developments that were not provided for in the 2013 budget.
He spoke of the EC$200 million borrowed for the on-going construction of the Argyle international airport and the Government’s decision to pay public servants the outstanding 1.5 per cent salary increase owed to them since January 2011.
But Opposition Leader Arnhim Eustace raised questions about repayment of the monies.
“The same taxpayers we are going to pay it to, those who the Government owes, those very persons who are receiving that money are the ones who will have to pay it back,” he said.
He accused the Government of running the country on a deficit and borrowing money to try to reduce that deficit.
“If we do not take steps to improve our financial management, our fiscal management, we’re going to get in deeper and deeper trouble,” Eustace said.