The Tribune

By NATARIO McKENZIE
Tribune Business Reporter

nmckenzie@tribunemedia.net

A well-known businessman yesterday urged the Government to implement the necessary “checks and balances” to prevent a further deterioration, adding that Value-Added Tax (VAT) and fiscal responsibility must go “hand in hand”.

Dionisio D’Aguilar, the SuperWash president, told Tribune Business: “To a certain degree the Government is being consumed with getting ready for VAT. They have to realise that the people and the business community is going to hold them to task about what they are going to do about fiscal responsibility.

“The politicians have to realise that VAT goes hand in hand with fiscal responsibility. Our politicians don’t want anyone telling them how to spend the people’s money. Many of them think they have a divine right to decide how they spend our money, and that has not served us well in the past.”

Mr D’Aguilar added: “I beg them, in the interest of the country, to put checks and balances in place to prevent us from getting in a worse position than we already are. We have to start spending our money judiciously, but if the people don’t care and don’t say anything, our politicians will continue to borrow us into bankruptcy. The proof is in the pudding. We are running deficits like never before.”

The Central Bank’s report on monthly economic developments for November noted that the Government’s fiscal deficit “deteriorated” by 56 per cent during the first quarter of its 2014-2015 financial year, growing by $54.1 million to hit $151 million.

The increasing ‘red ink’ for the three months to end-September, revealed in the Central Bank of the Bahamas report on monthly economic developments for November, was largely blamed on a $65.3 million year-over-year increase in public spending.

“The people are crying for, and need them, to act responsibly and put in some fiscal constraints on how they spend money. There is no constraint in place to stop them doing what they are doing. That’s why we need fiscal responsibility. We need a fiscal responsibility act,” said Mr D’Aguilar.