|
NEW YORK, USA - DEBT-ridden New York faces 'harsh' economic times, state Governor David Paterson warned on Tuesday in a specially televised address.
An already massive budget deficit of US$5 billion (S$6.83 billion) has been recalculated at US$6.4 billion as New York state - including the financial powerhouses on Wall Street - reels from a nationwide economic slump.
'The fact is we confront harsh economic times,' Mr Paterson said in a brief address aired live on NY1 television. 'The situation will get worse before it gets better.' Mr Paterson said he was summoning state legislators back from summer recess to discuss belt-tightening measures and an end to what he termed reckless borrowing.
'It is time for New York and other governments to cut up our credit cards,' the Democratic state leader said. 'The era of buy now and pay later and later is over.' However, Mr Paterson warned there were no quick fixes in a state most famous for the high-rolling excesses of Manhattan financiers.
The estimated budget shortfall over the next three years is now calculated at US$26.2 billion - a staggering 22 percent more than the estimate just three months ago, he said.
'How could that happen? It's simple. Costs are rising steadily, revenues are dropping dramatically.' For example, 16 banks that in the first half of last year paid 173 million dollars to state coffers had this year paid only five million in the same period, Mr Paterson said.
He promised to 'reprioritize the way we manage New York state finances. For too long we have done less with more ... Government will learn to do more with less.'
| 
