VIDEO: PM Rebuts Bowen’s Debt Claims, Calls Analysis Outdated

PM Rebuts Bowen’s Debt Claims, Calls Analysis Outdated

Prime Minister Gaston Browne has pushed back against criticism from Opposition MP Sherfield Bowen over government debt and borrowing, saying Bowen’s analysis is based on outdated accounting principles and misrepresents the country’s fiscal position.

Speaking on the Browne and Browne show on Pointe FM, Browne rejected claims that recent borrowing points to a growing deficit, arguing that Bowen was incorrectly treating debt repayment as an expense. The prime minister said such an approach reflects obsolete accounting knowledge and fails to distinguish between spending, interest payments and debt amortisation .

Browne explained that the government has been recording primary surpluses, meaning revenues exceed expenses before interest payments are taken into account. After servicing interest costs, he said the country has still posted an overall surplus, which is then used to reduce outstanding debt .

According to the prime minister, Bowen’s argument wrongly lumps debt amortisation together with current expenditure, creating the impression of a deficit where none exists. He said amortisation relates to reducing the existing debt stock and should not be treated as a recurring expense in budget calculations .

Browne also addressed concerns about plans to borrow more than EC$1 billion, saying the strategy is primarily aimed at refinancing high-interest debt rather than funding new spending. He said the government is seeking lower-cost financing from international institutions, including the Development Bank of Latin America and the Caribbean (CAF) and the OPEC Fund, to reduce overall interest payments .

By replacing expensive loans with cheaper financing, Browne said the government expects to lower annual interest costs and strengthen the country’s long-term fiscal position. He accused the opposition of either misunderstanding or deliberately mischaracterising the borrowing strategy to alarm the public .

The prime minister said the administration remains focused on maintaining fiscal discipline while managing debt in a way that supports economic stability and growth.

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