The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

MICHAEL Halkitis, State Finance Minister, yesterday criticised former Prime Minister Hubert Ingraham over his criticism that the government’s deficit projection was too high.

The Minister was responding to Mr Ingraham’s comments on Tuesday when he said that the PLP’s $700 million deficit projection was inflated. He said the government should not have increased expenditure, but should have cut back on spending.

Mr Halkitis told parliamentarians that Mr Ingraham was advising the government to do something that he had not practised during the FNM’s 2007 to 2012 term in office.

According to Minister Halkitis, while in office, the FNM consistently forecast yearly revenues but fell far below them.

In fact, he said the FNM continued to increase spending when the country was not earning what officials had estimated.

“You see the former Minister of Finance,” Mr Halkitis said, “ is saying that the economy is not growing so revenue is not forming, so you should have cut expenditure. But let’s see if he took his own advice.

“In 2008 to 2009 they forecast that they would collect $1.574 billion. Actually they collected $1.331 billion, you collected $242 million less than forecast. Now with the recession you would collect less money than you would have expected. 

“Did you take your own advise? That following year, did you say I’ve got to cut spending because my revenue is not performing? No. Because in 2009-2010 you raised your spending to $1.729 billion.

The Minister further justified why the PLP was facing additional borrowing on top of an earlier deficit projection of $550 million.

“Why should it be a surprise, or revelation for anybody that in 2012 there are bills that were left over that we have to pay, that we will pay that are commitments of the government of the Bahamas?” he asked.

“When we come to the point of doing the mid-term statement, I intend to table every single bill, when it was incurred and when it was paid. Because it seems no matter how many times you seek to set the record straight and move on, there are those who seek to rewrite history.”

He vowed that the government would do all it could to reverse the country’s difficult financial situation.

And although he said the signs of their efforts will not be seen in the first budget year, Mr Halkitis told parliamentarians that the Bahamian people should notice an upturn over a period of time.