The Tribune

By CELESTE NIXON

Tribune Staff Reporter

cnixon@tribunemedia.net

AS A result of the "dire" fiscal position left in place by the policies of the former FNM administration, Prime Minister Perry Christie predicted the deficit for the coming fiscal year to soar upwards of $500 million.

During his presentation of the 2012-2013 budget in the first meeting of the House of Assembly since the opening of Parliament last week, Mr Christie said the former government's financial and economic policies have left the government in a "dire" fiscal position with the deficit and debt levels much worse than anticipated.

Mr Christie said the Government Finance Statistics (GFS) for 2011-2012 is projected at $504 million with the deficit to be $550 million by the end of the 2012-2013 fiscal year.

He said: "In our very short time in office, however it has become clear to us that the previous Administration has, through its actions and fiscal policies, severely constrained our room to manoeuvre.

"We have been left with sizable, ongoing capital expenditure commitments and a legacy of contracts entered into in the final days of the former administration."

According to Mr Christie key components of the Charter of Governance will be immediately implemented as part of the government's programme of change, including Urban Renewal 2.0 and the implementation of house repairs and community improvements both of which will create employment opportunities.

$15 million will be allocated in the budget to facilitate these early programmes, he added.

Mr Christie said: "I want to reiterate the Government's firm resolve to redress, as we move forward, the fundamental structural imbalance that has been allowed to develop in the nation's finances over the past five years.

"We will implement the important structural reforms that I have set out above and thereby recreate the fiscal policy room needed to adequately implement our policy and programme agenda for the benefit of all Bahamians."

Development and implementation of legislation, policies and programme initiatives are included in the budget to combat crime, among them are amendments to the Police Act, creation of a National Intelligence Agency, development of a National Firearms Control Strategy, reintroduction of the Witness Protection Programme and Swift Justice Initiative, amendments to the Rehabilitation of Offenders Act, school based policing and tourism-based policing.

Speaking at a press conference following the suspension of the House of Assembly, Minister of State for Finance Michael Halkitis highlighted the initial objectives of the government in restoring fiscal stability to the country, these include the creation of a ministry of financial services and a ministry from Grand Bahama, acquisition of state of the art mammogram machines, implementation of the flight information region in consultation with the United States, as a revenue raising measure, reduction of Stamp Duty from 12 per cent to 10 per cent, Real Property Tax will be capped at $50,000, a reduction in Hotel Occupancy for existing hotels in Grand Bahama for a period of five years and a reduction in Hotel Occupancy tax for future hotels in Grand Bahama for a period of 10 years.

Mr Halkitis noted that there are no new taxes introduced at this time and a duty exemption for building materials and heavy equipment imported into Exuma will be restored.