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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 Last week PM Perry Christie unveiled his administration’s 2015/2016 budget. In his hours long communication, Mr. Christie spoke ad-nauseam about his government’s intention of creating a stronger Bahamas even unveiling a multimillion dollar ad campaign designed to push that concept. With the Christie administration seemingly committed to the systematic dismantling of the middle class though, the question is: A Stronger Bahamas for whom?
While the government’s budget contains some glimmers of hope which include most notably the reduction in the country’s deficit, the PM’s budget, like the ones before it depends heavily on the resurgence of the US economy and falls short of facilitating the kind of economic transformation needed to push the country forward. Instead the PM’s communication seemed like yet another attempt to placate special interest groups at the expense of the middle class.
Against a backdrop of increased government taxes, high unemployment and stagnant economic growth, this budget communication was an opportunity for the PM to detail his government’s specific fiscal plans to encourage real economic transformation by addressing shortfalls in key areas such as ease of doing business, and even illegal migration. Instead, the PM’s budget was filled with few details and empty gestures as part of a bid to distract the public from its poor record on issues of national importance.
While boasting about his administration’s “successes” on the tax collection front Mr. Christie’s budget communication touted exceptional VAT collection figures which, considering the ongoing reforms to the Customs department – to which VAT Collections are closely tied – are simply too clean especially at this still early stage of the process. There was no mention of how monies collected from VAT was applied. The economic success story as told by the PM also conveniently ignores what has become the pink elephant in the room: BAHAMAR. For months, the multi-million dollar property has figured prominently into the PLP’s growth plans for the economy, most unfortunately after several delays and seemingly unending negotiations between the developer and the lead contractor, the resort remains closed; a reality which will likely force a downward revision of the country’s growth prospects. Those growth prospects as outlined by the Prime Minister also differ significantly from the predictions made by the central bank which predicted more moderate growth in the short term.
Among other key omissions, plans for the redevelopment of the Bahamas Development Bank and a report from Resolve regarding its acquisition of that 100 million dollars worth of bad debt from the Bank of the Bahamas.
More importantly though, the government’s fiscal budget further failed to take advantage of some of the immediate avenues available to an administration serious about improving the overall quality of life for Bahamians, among them: a reduction in the prime rate from the central bank which would immediately impact the lives of scores of middle class homeowners.
Another issue of note is the government’s decision to ban the importation of wrecked vehicles and cars over ten years old. Introduced under the guise of environmental protection, this new policy is indicative of the lack of forethought which this administration has become known for and will undoubtedly do more harm than good. Over the years the importation of second hand vehicles has blossomed into a full scale industry which has spawned used car dealerships and which has become a viable option for individual entrepreneurs. This policy change will immediately decrease the level of business for those persons while further disenfranchising middle and lower income Bahamian families who may be unable to qualify for financing from local lending institutions to purchase a vehicle. Coupled with a lack of effective public transportation, and no mention of a strategic plan to address the issues which currently plague the public transportation system, the government has dealt a serious blow to Bahamians who were once able to purchase inexpensive vehicles to get from point A to point B. A responsible government may have considered the more measured approach of having all imported vehicles meet a certain internationally recognized standard for shipping rather than a blanket ban. Doing so would allow for a closely regulated environment which still allows Bahamians to benefit.
Perhaps one of the most important items mentioned in the budget is the government’s push to introduce the University of the Bahamas. The long term impact of these plans – once executed properly – on the Bahamian economy in the long run will be far reaching. Again however the government’s budgetary plans for education fall short of the needs of the country. Improvements to the country’s education system must occur long before students reach college. In that regard the government has again dropped the ball. Education reform must begin within the kindergarten system working its way up to high school in an effort to equip children with the necessary tools to enter the University of The Bahamas and leave with the skill sets needed to be productive citizens in the economy and society at large.
To be continued…
© Copyright 2015 by thebahamasweekly.com
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