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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 Recent reports from The Inter-American Development Bank, in their Caribbean Region Quarterly Bulletin, state clearly that the fiscal consolidation plan of the current administration is all but a failure.
In a DNA release published on April 20th, 2016, with regard to the then released Standard and Poor’s analysis on the Bahamian economy, we outlined clearly how we felt about the government’s fiscal consolidation effort and we quote: “… the (DNA) questions about this fiscal consolidation and how can it be holding firm as suggested, when spending is still way out of control, the deficit, while touted to be reduced, may experience a sudden burst in borrowings by the end of the fiscal year and also when it is patently obvious that there is little to no growth to extract taxes from?”
This is not rocket science, but simple logic followed by basic math. We also went into detail to articulate our issues with the variance of the figures in that same release, particularly when the IDB in their report, suggest a 6% GDP swing is needed to arrest the problem of the growing debt.
The DNA also wishes to caution this administration on giving incomplete or inconsistent data to the public via pronouncements that are out of season, only for those pronounced over-estimations to be washed out in the final account. Particularly in regard to the consistent over-estimation of revenue versus the underestimation of expenditures, as it is the country and the people that get hurt. This is something the IDB also suggests and it is something the DNA has gone on record with regard to cautioning the government on repeatedly if not ad nauseam.
The main concern for the DNA right now is getting The Bahamas and the Bahamian people moving again. We are stuck in a cycle of depression fuelled by bad ideas, because the same people are forcing the same old ideas on growing our country down our gullets. It is not working! Bahamians are losing value and the DNA cannot sit idly by and pretend we do not feel the burden of poor decision making with respect to our economy.
In addition, we want to go on record and caution participants in the economic arena to watch for inflationary pressures which may make any growth efforts problematic, especially if these inflationary pressures are buttressed with higher than normal energy prices and also inflationary pressures that can be misconstrued as growth indicators but not necessarily real growth.
It is clear that this administration is lost on the drivers of this economy, they are not keen on how their decisions from the Baha-Mar Resort handling to the lack of true oversight of our VAT regime, factors into the problems we have today as a people.
It is clear that others, including the IDB and the DNA, have recognized their shell game and willing to speak on it. Further, the DNA as a new government will act on these matters as a priority.
A DNA government will accelerate plans to assess our country’s vulnerabilities to external and internal shocks to supply and prices, and find a new appreciation for the VAT/Tax-Matrix we have in The Bahamas, with a view to cutting taxes where needed to spur growth, while keeping an acceptable level of revenue generating rents to keep our books in the black.
A DNA government has gone on record with assaulting the wasteful spending in government. We have also gone on record in stating that the way to do this is bringing in the latest project management software and economic impact analysis tools and templates that would cause us to identify more quickly the wasteful projects versus the projects that are pro-growth and positively correlated with growth efforts.
Lastly, but most recently, the DNA will move towards establishing a public management corporation, with a view to putting government corporations; quasi government corporations; and private interests the government has invested stakes in into this corporation, with a view to sweeping as much of the recurring expenditures off of the main governments balance sheets while simultaneously giving these interests and entities the focus and attention needed to attain alpha at all times.
We believe we in the DNA can turn this ship around and make Bahamian lives better. But you must trust us and come with us!
Youri Kemp
DNA Candidate for Garden Hills
DNA Spokesperson for the Economy and Finance
© Copyright 2016 by thebahamasweekly.com
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