Economist says Faroese budget lacks revenue focus and return incentives

The Faroe Islands’ draft budget focuses too little on government revenue and on encouraging Faroese people abroad to return, economist Rebekka Joensen says, according to KVF.

Joensen made the comments on the broadcaster’s Breddin programme on Thursday. She said too little was being spent on measures such as making it more attractive for Faroese people living abroad to move home.

Finance Minister Aksel V. Johannesen said the Social Democratic Party would have liked to raise more revenue, including through resource fees. But he said the party was bound by agreements with the other two parties in the coalition, which he described as bourgeois.

Johannesen said the commitment not to increase taxes on ordinary people was consistent with Joensen’s point about making the Faroe Islands an appealing choice for young Faroese.