Public servants may likely be given an extra dose of bitter pills as the cash-strapped Keith Mitchell-led government grapples to address a tight fiscal imbalance in Grenada.
An authoritative source within the Ministry of Finance has confirmed to the New Today Newspaper that the ruling New National Party (NNP) government of Prime Minister Mitchell is considering eliminating the monthly increments paid to public servants as part of the three-year Structural Adjustment Program (SAP).
The proposed suspension of the increments is expected to save the government $6M annually.
An increment is a performance salary increase paid to public servants on a monthly basis.
Government’s move to suspend monthly increments comes on the heals of its decision to put a three-year wage freeze on public servants salaries, and at a time when the public sector unions have submitted a nine point plan to counteract the wage freeze.
The Mitchell government has been under fire in recent weeks for huge increases in taxes as opposed to creating thousands of jobs in keeping with its promise made to the electorate to get its landslide 15-0 sweep at the polls last February.