The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

THE Government expects its requests to borrow money this year will not exceed last year’s commitments with lending institutions, Minister of Finance Michael Halkitis said yesterday.

While he was not able to project how much money the Government would need to fulfil its obligations, Mr Halkitis said officials at the Ministry of Finance were aiming to free up revenue so that borrowing is not needed for the country’s day-to-day operations.

Bahamians will get a better understanding of the government’s fiscal approach when the final budget is presented to Parliamentarians at the end of May, Mr Halkitis said.

“I think what we want to do,” the minister said, “is definitely borrow less than we did last year. But for the foreseeable future we will be borrowing money.

“You want to be able to bring the amount that you are borrowing down to a level so that you can support it without putting stress on the other parts of the economy.

“The key for any government is to ensure that you are first of all in a position where you are not just borrowing money for day to day operations of the government and not borrowing money to pay salaries and other expenses,” he said.

To reach such levels, Mr Halkitis said government agencies are in the process of submitting proposals to the Ministry of Finance on how they expect to make budgetary cuts.

“We have an idea where we want to go in terms of spending. So we just want to make sure that we can fit all of the agencies within those parameters, ensuring that what they believe are their key initiatives (are secured).

“(We want to ensure that we are) not in a position where we are handicapping any of the various government agencies from performing their role.”

In February, the Government asked departments to scale back their requirements in an effort to see a 25 per cent reduction across the board.

The Government has been urged by international agencies to take a bold stand in reducing the national deficit.