Country moving away from fiscal cliff, says PM – Eye Witness News
PM attributes end of COVID emergency orders among reasons for improving economic conditions
NASSAU, BAHAMAS – Based on the country’s fiscal performance six months into the current fiscal year, this nation has already begun to pull back from the “fiscal cliff”, Prime Minister Philip Brave said yesterday Davis.
Davis, when presenting his mid-year budget report to Parliament, noted that tax revenue improved in the first half of the fiscal year from $389.8 million to $959.3 million per year. compared to the same period of the previous year.
While this is cause for momentary celebration, it is no reason for us to rest on our laurels.
– Prime Minister Philip Brave Davis
“That works out to 47.5% of the full budget estimate,” Davis said.
“WWhile some of this improvement in revenue collection can be attributed to improved general economic conditions, no doubt the elimination of emergency orders and curfews by this administration has given Bahamian businesses more respite and contributed to this rebound.
“Similarly, VAT (Value Added Tax) revenue increased by 101.4% or $287.2 million to $573.5 million and 61.9% of the budget.”
Davis also noted that non-tax revenue improved by $63.7 million to $167.6 million.
“I wish our creditors, investors, members of the business community and, most importantly, the people of the Bahamian to take note that, based on all accounts at the end of the six months of the current fiscal year , the Bahamas has already begun to pull back from what I have referred to in recent years as a ‘fiscal cliff’,” he said.
“While this is cause for momentary celebration, it is no reason for us to rest on our laurels.
“We must remain committed to carefully monitoring our fiscal position and remain firmly committed to our guiding principles, thereby avoiding the mistakes of the past.”
Davis also noted that in the first six months covered by the report, the Bahamas experienced a net budget deficit of $285.7 million.
This, he noted, represents a 61.1% or $448.6 million reduction in the deficit from $734.3 million in the same period a year earlier.
“Most importantly, halfway through the budget cycle, the deficit stood at just 33.3% of the budget forecast,” he said.
“Furthermore, due to net borrowing activities, central government debt only increased by $395.6 million to $10,322.6 million ($10.3 billion) and fell further. amounted to 96.4% of GDP at the end of December 2021.
“This compares favorably to the previous debt ratio of 100.2% of GDP at the end of June 2021, which was before this administration took office.”