[xml][/xml]
The Bahamas Weekly Facebook The Bahamas Weekly Twitter
News : Bahamas Information Services Updates Last Updated: May 7, 2015 - 7:57:38 AM


Bahamas Government to set prudent fiscal measures
By Llonella Gilbert, BIS
Jun 1, 2012 - 1:58:39 PM

Email this article
 Mobile friendly page
Budget_Communication-1.jpg
Prime Minister the Rt. Hon. Perry Gladstone Christie leads Cabinet Ministers and other Members of Parliament, as they head to the Parliament for the Prime Minister’s presentation of the 2012/2013 Budget Communication. (BIS Photo/Patrick Hanna)

NASSAU, The Bahamas -- In light of the very serious deterioration in The Bahamas Government’s fiscal position in 2011/2012, this administration must set the fiscal parameters prudently in 2012/13 to begin the process of getting the Government’s fiscal house in order.

But at the same time, the Government still has to achieve its short-term priority initiatives, Prime Minister the Rt. Hon. Perry Gladstone Christie said while presenting the 2012/2013 Budget Communication in Parliament, Wednesday, May 30.
The Prime Minister said the fundamental challenge for fiscal policy is the very large negative imbalance that has been allowed to develop in respect of the Government’s Recurrent Account.

“The gap between Recurrent Expenditure and Recurrent Revenue, both expressed as a per cent of GDP, has quadrupled in the last five years.

“In 2006/07, the negative spread between the two stood out at 0.8 per cent of GDP,” he said.
This year, the imbalance has grown to 3.2 per cent of GDP.  In the last five years, the ratio of Recurrent Expenditure to GDP has grown from 17.4 per cent to 21.3 per cent, Prime Minister Christie said.

“However, the ratio of Recurrent Revenue to GDP has only risen from 16.6 per cent to 18.1 per cent.
“In essence then, rather than only borrowing to finance productive investments in our nation’s future prosperity, the previous administration was also increasingly borrowing to pay for an increase in everyday expenditures in the form of salaries, rent and utilities that was not matched by an increase in revenues,” the Prime Minister said.


The Government’s key priorities will be to redress the unsustainable imbalance in its Recurrent Account, he explained.

It will do by constraining the growth of Recurrent Expenditure relative to the growth of the economy and by engineering a transformation of Recurrent Revenue to bring it to a more appropriate level relative to the size of the economy, the Prime Minister said.

“Having stated this reality as clearly and as forcefully as I can, let me be clear.  My Government fully acknowledges and accepts that the fiscal deficit must be constrained in the short term and significantly reduced thereafter.

He added, “As such, in the very short period that has been available to us since coming into office and, given the expenditure commitments already on the books for the coming fiscal year, we have done what has been feasible to achieve the objective.”

The Government will implement the fiscal measures necessary to improve the Government’s fiscal position and rein in the growth of Government debt, Prime Minister Christie said.

As a means of reducing the Government’s expenditure in respect of interest charges on the Public Debt, the Government is working toward the implementation of a modern Debt Management Strategy, he said.

A Debt Management Committee has been established comprising representatives of the Ministry of Finance, the Public Treasury and the Central Bank, to develop and put in action a debt strategy that will lead to lower borrowing costs while minimising risks incurred, the Prime Minister noted.

This is being done with the technical assistance of the IMF.

“We will report on progress made in respect of the structural fiscal reforms that we are initiating at the time of the Mid-Year Budget Statement in early 2013,” he said.


Related articles:

Bahamas projected GFS deficit projected to be $550 million

Breakdown of the Bahamas Government Budget 2012/2013 Estimates (PDF)

Government introducing measures to rationalise tariff and excise rates

Government reaffirms commitment to mortgage relief programme

The island of Grand Bahama gets its own Ministry

FNM: 2012/2013 BUDGET RESPONSE: Lame, Blame and in many ways more of the Same Budget

Bahamas Development Bank’s mandate to be refocused

Bookmark and Share




© Copyright 2012 by thebahamasweekly.com

Top of Page

Receive our Top Stories



Preview | Powered by CommandBlast

Bahamas Information Services Updates
Latest Headlines
Mitchell Represents The Bahamas At Guyana's 50th anniversary
Fred Mitchell: Concern about racism in Baha Mar criticism
Carnival Mega Ship Calls at Freeport Harbour
NEMA Conducts Water Rescue Course in Crooked Island
Albert Cox Presents Copy of His Book, 'The Composition of the Universe...' to the Governor General
Bahamian Educators Receive Medals for Exemplary Service
Bahamas PM Delivers the 2016/17 Budget Communication
Collaboration with US State Department ‘Concrete Evidence’ of Bahamas' Commitment to War Against Trafficking in Persons
Oceans 5 officials call on Bahamas Prime Minister
Florida-based tourism employees readied for Bahamas referendum and general elections
COB and BAMSI Sign Memorandum of Understanding
Grand Bahama Regatta receives donation from Ministry of Grand Bahama
Netherlands Ambassador Designate Visits The Bahamas
China's Ambassador Designate Calls On The Bahamas Government
PM Christie Lauds ZNS on its 80th Anniversary
Consumer Affairs Unit Temporarily Relocates to British Colonial Hilton Fort Nassau Centre
Sandra Edgecombe Reading Literacy Programme Officially Launched in Grand Bahama
PM Christie Heralds 'Great Things' Coming Soon for The Bahamas
Funeral Services Held for Veteran Trade Unionist, the Late Nelerene Harding
Mechanic Presents Book on 'How to Extend Your Car Life' to Minister for Grand Bahama
NEMA Conducts Shelter Management Training Course
Dr. Duane Sands Presented Instruments of Appointment as Senator by the Governor General
Bahamas PM responds to "500 Bahamian citizenships to Chinese investors"
COPA Conducts 20 Aircraft Fly in to Abaco, Bahamas
Ambassador Designate of Egypt Presents Letters of Credence to the Governor General‏
Family Island Student of the Year Nominees at Government House
Dorsett acknowledges Tribune retraction re: Bahamas Mortgage Corporation
Mobile boarding pass introduced at LPIA
Hon. Jerome Fitzgerald remarks at The Bahamas Primary School Student of the Year 2016‏
The YES CAMPAIGN responds to Rev. Cedric Moss on the gender equality bills‏
NHI Secretariat to Hold Additional Town Hall Meetings in June
Bahamas Bureau of Women's Affairs focuses on CEDAW
C.C. Sweeting High School Calls on the Governor General
New Study Launched at Rand Memorial Hospital to Improve Patient Care
Mitchell House Statement on a Question of Parliamentary Privilege‏
Fox Hill Resident Receives New Home Thanks to Urban Renewal Commission
NIB issues apology to their customers
Trafficking in Persons Workshop Held in The Bahamas
Breezes Bahamas Cultivates Partnership with Centreville Primary School
Hon. Shane Gibson on the Passing of Theresa Huyler