The Tribune

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Government yesterday secured nearly $800,000 in funding through a technical agreement with the Inter-American Development Bank (IDB) and the Japanese government which, according to state minister for finance, Zhivargo Laing, will support efforts toward "fiscal rebalancing". "The agreement addresses some issues related to debt management, tax administration and the improvement of revenue collection. The money will be used to support new and existing government programmes designed to strengthen our framework of fiscal accountability," Mr Laing said. The funding consists of $612,000 provided by a Japanese special fund through the IDB ,and $153,000 in-kind funding locally. Mr Laing addeds: "In the wake of the recession, countries which were able to increase their level of public debt did so, in their effort to support their economies, assist those affected by the recession and support their financial systems. The Bahamas was no exception. "The focus of this technical co-operation aims to support our fiscal rebalancing through improving our current system of revenue collection, with emphasis on property tax administration and strengthening of our debt management systems. "Our aim through this technical co-operation is to modernise and reform our systems so that they are consistent with international practices." Mr Laing said the project was a timely one, providing additional resources to support the various initiatives being undertaken by the Government in these areas. At the recent Bahamas Business Outlook conference, Mr Laing acknowledged that the Bahamas needed a "fiscal rebalancing" given its $4.25 billion national debt, and that the Bahamian economy was going to have to grow faster in order to support this.