Until the global economy recovers, the small island economies in the region grow; there will be tremendous pressure to raise tax revenue to finance the human resources needs and other operational costs of our countries.
However, although the PAYGO budget rule, for example, appeared to help keep legislation from increasing federal deficits for a number of years, PAYGO did not provide a mechanism to deal with the long-term budget imbalances already in place. Thus, it is worth considering whether future budget rules should go beyond the scope of PAYGO and require more fundamental adjustments to spending and taxes.