The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

THE government has asked all public institutions to go over their finances with a fine-tooth comb and to highlight where savings could be made.

State Finance Minister Michael Halkitis says budgetary cuts have yet to be imposed on the College of the Bahamas or any other government corporation.

He said when the government does look at budgetary measures, it is proposed that ministries could see a 10 per cent cut this year, and then a 25 per cent reduction the year after.

The midterm budget is expected to be on the agenda on Monday when the House of Assembly reconvenes. 

Mr Halkitis said: “All we did was send a letter to all public institutions just asking them to look at how they can save money. Just look and see how and where you can see some efficiencies. We are trying to urge them to be creative in their money-saving initiatives.

“We are not saying that we are imposing but this is a part of the process. We are not trying to disadvantage anyone.

“But these are the types of things we have to do under the financial circumstances we face at this time.”

The Christie administration has been under the spotlight of international bodies as it struggles to spark growth and boost the Bahamas’ economy.

Wall Street last year told Tribune Business that the Christie administration’s plan to balance its budget by 2016-2017 was “overly optimistic”, as it would require an “unprecedented” positive swing of almost $400 million on the primary side alone.

Officials have said that during the 2012-2013 fiscal year a deficit of $550 million is projected. It was estimated that the national debt could reach $5 billion.

Financial experts believe that serious economic growth must be achieved over the next few years to combat the implications of the existing 30,000 unemployed workers, new high school graduates into the work force.