Hon. Perry G. Christie, M.P. Prime Minister and Minister of Finance on Wednesday, 27th May 2015 budget communication 2015/16: Building a Stronger Bahamas.

(By Elcott Coleby) The highlights of the two and one half hours budget communication delivered by Bahamas Prime Minister and Minister of finance the Rt. Hon. Perry G. Christie on Wednesday, 27^th May 2015 are as follow:

• The GFS (Government Financial Statistics) deficit was reduced by $342 million or two thirds over the past three years from a high of $539 million during the 2012/2013 fiscal year. The Prime Minister stated that the Government will borrow only $182 million in the 2015/2016 fiscal year compared to some $670 million during the 2012/2013 fiscal year.

• The Government’s projected GFS fiscal deficit for the current period was estimated at $198 million, down $88 million from the initial forecast of $286 million at the beginning of the current fiscal year. This is 31% lower than initially forecasted and the lowest in seven years.
  

• Value Added Tax (VAT) receipts totaled $110 million for the first three months of 2015, reducing the GFS deficit to 2.3% of GDP, down from the forecasted percentage of 2.8%. Total receipts are expected to reach $150 million by the end of the current fiscal year which ends on 30^th June 2015.

• Excise tax on vehicles slashed from 85% to 65% and a ban was placed on the importation of vehicles that are ten years and older.

• Stamp duty on real estate transactions slashed to an across-the-board and uniform rate of 2.5%.

• Real property tax on commercial properties valued at less than $500,000 slashed by 25 basis points – from 1% to 0.75%.

• Pensioners living in a home valued under $1 million will enjoy a 50% discount on their real property tax.

• Excise tax exemptions on building materials for construction in economically depressed areas in New Providence.

• No excise tax on medical equipment, audio/visual equipment and alarms.

• National Health Insurance will be implemented in January 2016 at no additional cost to Bahamians. The budget provides $60 million to target improved quality and efficiency in the administration and delivery of existing health care services.

• $20 Million allocated for youth jobs training through the Urban Renewal 2.0 Project.

• The Bahamas Mortgage Corporation (BMC) to raise $100 million via a bond issue to finance the construction of 1,000 homes. This is a public private sector partnership in housing development.

• Government to allocate “seed funding” to promote its $200 million public private partnership (PPP) in infrastructure development.

• Government to construct a $20 million multi-service facility on Gladstone Road for adults with disabilities.

• Public Hospital Authority to raise $35 million dollars to improve health infrastructure ahead of the implementation of National Health Insurance (NHI).

• The College of The Bahamas remains on target to transition to the University of The Bahamas by December 2015.

• Country’s first National Development Plan (NDP) to be unveiled in the 2015/2016 fiscal year.

• Government to lease the former Bahamas Academy on Wulff Road for at risk students with low scholastic performances to give them the focused attention needed to address their specific needs. This includes a tracking system that will identify many of the root causes of their behavioral problems. This policy is part educational, social and is a pre-emptive strike against criminality according to Prime Minister Christie.