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Please forward this error screen to 67. All porn xxx tubes, pictures and all other trademarks and copyrights are property of their respective owners. Fellow citizens, as we settle into our various routines, wherever and whatever that might be, I trust that we all had a joyous Christmas Season, shared with family, friends and community spirit. As we reflect on the arrival of 2018 and all that it holds for us, let us spare a thought or a prayer for those individuals and families who have been victims of violent crime from one direction or another. Their pain is our pain and even as the New Year has opened with reports of the continued murderous scourge on our land I want to appeal to all citizens to keep hope alive in this war against the heartless family members and career violent criminals. We must continue to support the Police in the national effort which last year saw 1064 firearms of all description and 18,000 rounds of ammunition confiscated, record numbers for the Caribbean, yet we face almost record killings. Additionally, over 12,000 persons were arrested last year. We must, and we will, win this war on crime. New approaches are at work in the SSA and a new energy is beginning to infect the ranks of the Police Service and already we are seeing improvements in response and detections.
Notwithstanding many huge negatives which still exist, we are heading in the right direction. We need to increase speed on all fronts so that we can get to that destination of safety and security which the population deserves. With appropriate leadership and effective actions all around, from the home to the Parliament, from the school yard to the Police Station, we will overcome the violent few who are determined to make hell out of this paradise which we all have inherited as our homeland. As we launch out in 2018, I take this opportunity to come into your homes, or wherever you are, to tell you a bit of what we have been doing , what we have done, and what we will be in the year ahead. Most importantly, I want to tell you why we have done or are doing some of the things which we have set about to do on your behalf. As you are well aware by now, for quite some time, our economy has been facing a decline in the production of oil and gas, two commodities that make the main contribution to our gross national product, government revenues, our exports and foreign exchange earnings. Energy sector revenues were hit by a dramatic collapse in international oil and gas prices and our own low production levels.
30 per barrel in February 2016, which coincidentally was just 5 months after this PNM returned to Government. Given the significant contribution of the energy sector to government tax receipts, total government revenue fell by a similar amount. The resulting fiscal deficit was financed by ad hoc arrangements, including billions of dollars in short-term loans from the domestic banking system, many of which came due in 2016, the first year of the new Government. 2015 reflected a 14 per cent wage increase to public servants, which created an obligation for backpay, which was initially promised to be paid before the end of fiscal 2015. 5 billion was left for the incoming administration to deliver.
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Ladies and gentlemen, this is the background against which the new PNM Administration assumed office in September 2015. At the time, many people sympathized that this was not the election to win, as our new administration could not continue with the largesse of the recent past. After taking stock of the economic situation, our Government immediately embarked on a fiscal consolidation program whose main obstacle was the fiscal deficit, the driver of our public debt situation which had increased at an uncomfortable pace. As the oil price shock became a long term structural industry change, rather than a short-term cyclical phenomenon, it was clear that we had to strengthen our domestic revenue base and reduce our heavy reliance on energy revenues. Our most immediate task, therefore, was to stabilize the economy, and in particular Government spending, which was completely out of control when we came in. 16 billion investment retention at NGC had been used up, the Green Fund had been mortgaged and in addition to this Government contracting and debt to contractors, large and small were at an all-time high. Ladies and Gentlemen, I will be less than honest if I do not concede that the first two years of the fiscal consolidation strategy have been very difficult.
I can also say with satisfaction that we have made important progress in that we have begun to successfully address some of our entrenched vulnerabilities and to make the hard decisions that are indispensable to our long term economic survival. Even so, as we struggled with existing high debt load, this new assignment could not have been done without resorting to new borrowing to prevent the economy from collapsing completely. In these difficult times the Government gets voluminous and divergent advice from a variety of quarters, none of which is without some element of negative side effects. One persistent view from some prominent quarters is that we have not cut expenditure sufficiently and should have made much deeper cuts at the beginning of our tenure. These kinds of advice, useful and informed as they are, usually are never accompanied by any list of the consequences of such actions, as advised. It would have been a much more arid and barren land had we not managed the last two years with a steady hand making the adjustments along the way, with far less available revenue, then our future would have been far less hopeful than it is now.
We also took initial additional steps to reduce expenditure, including a phased reduction in fuel subsidies. We systematically lowered overall Expenditure from 63 billion in 2015 to a budgeted 52 billion in 2018. 10 billion gap to be filled by borrowings and asset sales. On the revenue side we took steps to restore the original purpose and intent of the value added tax which had been severely undermined in 2012 when some 7,000 non-essential items were exempted from VAT, for purely 10 political reasons.