ST GEORGE'S - The new Grenada government may not be able to pay public servants or meet its other monthly expenses.
That possibility was made clear by Finance Minister Nazim Burke who charged that the island's finances are "in absolute mess".
He has blamed it on the previous administration of Dr. Keith Mitchell, charging that it left an empty Treasury for the new Tillman Thomas government which took over after the July 8 elections.
"It's going to be a struggle even to meet the monthly salaries at this moment. That is how bad it is," Burke said, although insisting that he did not want to create panic. He added that the government would have to rely on overdraft facilities in order to meet its obligations.
Burke's comments came on the heels of a meeting with a team from the Washington-based International Monetary Fund (IMF), during which he expressed grave concern with the country's fiscal situation.
In particular, he mentioned the excessive expenditure on poorly targeted social programmes and employment contracts awarded just before the elections.
The Finance Minister said that the government is still taking stock of the situation and will make relevant decisions based on the findings.
Minister Burke told the IMF team of the government's commitment for stronger economic management and the successful completion of the Poverty Reduction and Growth Facility (PRGF) programme with the Fund.
A comprehensive review mission by the IMF is scheduled for mid September.
