Halkitis: $100M needed to cover Ingraham commitments

As of Tuesday, February 26, 2013

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

MICHAEL Halkitis, State Finance Minister, said the government will be seeking authorisation for around $100m to cover the prior commitments of the former Ingraham administration.

Minister of state for finance, Michael Halkitis.

According to Mr Halkitis the debt is purely the result of carry over expenditure tied to $63.14m in unpaid cheques and wire transfers, $23m owed to participants of the 52-week job programme and $10.86m in lump sum payments owed to the teacher’s and public service unions.

The Christie administration will have to foot these millions of dollars in debt, he said, as when they took office in 2012 all of the country’s short term facilities had been totally used.

Mr Halkitis was speaking to the media during a press conference at the House of Assembly which followed Prime Minister Perry Christie’s presentation of the mid-year budget. Mr Christie has said that the government intends to propose a number measures, including custom duty and property tax reforms to arrest a rise in the debt to GDP ratio.

“What happens,” Mr Halkitis said, “is the government would be able to use either its overdraft facilities or other short term financing to satisfy them without coming for more borrowing.

“Unfortunately, in our case we had a situation where the short term facilities had been maxed out. That is inclusive of Central Bank advances and the government’s overdraft which when we came in was at $200 million. All of those were maxed out and so we did not have that avenue available to us.”

However, he was unsure of whether the government would need to use the entire $100 million. He said officials were hoping to increase the country’s revenue streams to cut back on depleting the fund.

“That is the amount we think we would need to satisfy our obligations,” Mr Halkitis said. “It does not mean that we would go out tomorrow and borrow $100 million. The resolution would give us the authority to do so.

“And, of course, as we go to the end of the year we would hope that some of the initiatives that we announced – the reduction of the excise duty on trucks and of the amnesty programme for real property tax – we’ll be able to deliver some more revenue. In that even we will be very happy if we do not have to utilise the entire 100 million authorisation.

“As it stands now that is the amount that we anticipate that we will need and that is the amount that we will be seeking authorisation.

“We anticipate that this will be the final authorisation that we will be seeking.”

The government is expected to reveal more on its plan for the economy when the House of Assembly reconvenes on Monday, March 4, at 10am.

Edu 11 years, 8 months ago

Didn't you guy borrow 550 m the other day to cover ingraham expenses. What happen to that money.. This governement can't seem to keep the former PM names out of their mouths..

http://tribune242.com/users/photos/2013…

jackflash 11 years, 8 months ago

They need to learn how to tighten thier belt!

Cut costs and collect on all that NIB not collected since May 2012.....

Collin 11 years, 8 months ago

This claim is complete and utter nonsense. All the wastage by this government and they have bent far over to try to connect it to the previous administration. However, were are not so foolish to believe this, during last year's budget exercise they much noise about them having at that time find funding for the 52 week programme. Are they seeking to have the Bahamian people believe that the money again after they did in June? Are they saying the programme was closer to $70,000,000 as oppose to the figure they listed of $45,000,000 or there about?

What we would like to see is that they explain to the Bahamian people what is the cost for all of the new people they brought on and the wastage of money for Urban Renewal 2.0; that would be an interesting.

I doubt we will hear anything about it though...my my what a tangle web the PLP and Hon. Halkitas seek to deceive...

TalRussell 11 years, 8 months ago

The PLP government's season for introducing all types new taxes is soon to be upon struggling pay you bills Bahamians. Pretty soon that Value Added Taxes PLP Waste, it'll be in full swing just in time for the hustle and bustle of the Christmas Church Services Season.

I ain't saying it true but some talk on the streets is say'in that the PLP has secret plans to even "stuck little 15% tax must be added stickers on sides all Sunday collection plates," across we Bahamaland, saying that; "Tis the VAT Season on all Church Offerings?

Talk bout Peace and Goodwill among the poor, who voted the PLP back into power. Hold on now. If you anything likes me who supported PM Christie's return to power, it sure as hell is suspect that you have mixed set of motions that first thing the PLP government did was to side with the numbers "bosses." and against the churches. They were's sneaky how they went about trying to get the numbers businesses under a taxation system. Ain't they know the poor the most of them one's playing the numbers?

Now, PM Christie say'in; Tis soon be VAT time to part more ya little paychecks. And, if you go to church, it go'in cost you an additional 15% in VAT.

I ain't figure the PM out. What about you?

http://tribune242.com/users/photos/2013…

tonymontana 11 years, 8 months ago

Lol@ talls. We had a five year resume on this fat lazy man , who you all no was full of wind and could not deliver , the only thing we knew he was good for was providing free meat for the people of Andros when he served as minister of agriculture, the cows that did not die were allowed to run free under his watch , which brings us back to present time ,some will die and others will run free under this mans watch. Perry the compassionate lol . let them eat cake he says

PKMShack 11 years, 8 months ago

@Tal Russell.....Oh don.t try that. You voted for him because he was good for the country in your heart, this is what you get when you vote Party and not Brains. Just say you miss your HAI you so dearly hate. But he did put our Bahamas first compared to these bunch of clowns you help put in there.....