By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
MINISTER of State for Investments Khaalis Rolle defended the government’s fiscal policies yesterday after it was revealed in the Central Bank of the Bahamas’ Quarterly Economic Report that the national debt increased by $581.4m, or ten per cent, up to June of this year.
In light of the increase some have questioned whether value-added tax (VAT) is fulfilling its purpose of helping to reduce the national deficit and debt.
Addressing the matter yesterday, Mr Rolle said: “We’re still going through the fiscal consolidation process. There were projections provided in 2012 that it would take a couple of years for us to narrow the deficit to zero, a balanced budget. Until the budget is balanced we are still going to have a deficit shortfall and that deficit shortfall would contribute to the national debt by increasing it.
“It was projected that we would not have a balanced budget until I think 2016 or 2017 so until that happens, where do you think we will get the shortfall from to run the government?”
Last week Free National Movement Deputy Leader Peter Turnquest said the deterioration of the country’s debt-to-GDP ratio is a “daunting reality.”
“This is especially so when we consider that the national debt has continued to escalate even after the introduction of VAT and suggested reductions in overall expenditures,” Mr Turnquest said.
“(The 10 per cent rise) suggests a debt-to-GDP ratio of almost 75 per cent, well into the danger zone suggested by the IMF and on its present course is unsustainable. When one considers that VAT for the same period is said to have amounted to $182 million, removing this new revenue from the equation means this government has actually increased the deficit by $763 million in just one year. No wonder the PLP chairman and the government are so defensive, personal and belligerent over its VAT policy and secretive over the accounting of exactly where these tax dollars are being spent,” the East Grand Bahama MP said. “In the lead up to the implementation of VAT, the government made much of its promise to utilise a portion of this new revenue to eventually eliminate the national debt. To date we have seen the exact opposite as the government finds new and more creative ways to spend these tax dollars on frivolous escapades and questionable programmes. The Central Bank’s numbers suggest that while the annual deficit is contracting due to VAT, the overall national debt load continues to increase leaving everyone to question, where exactly this new VAT revenue is going?”
Comments
asiseeit 9 years, 2 months ago
Stop using the peoples money to buy votes you assholes!
ThisIsOurs 9 years, 2 months ago
How much money has been spent in 2015 to send "consultants" to carnivals around the world, Brazil, Toronto, Trinidad etc?. The travel budget across all ministries needs to be cut immediately. All travel orders should be rescinded, reevaluate the necessity of every single trip. While we remain in this hole, no money should be spent to send anyone to get drunk and party. After all, after 20 years, the "consultants" must have a pretty good idea how carnivals around the world operate.
sealice 9 years, 2 months ago
If you cut Fweddy's travel budget he won't have nothing to do but chase hayshuns?
The_Oracle 9 years, 2 months ago
Fiscal incompetence from personal to National. Government is into everything it should be, and ignores the things it should be doing. When all is said and done, they are destroying the value of our money, our country. And they could care less.
Chucky 9 years, 2 months ago
This is not an example of incompetence, this is proof of mass amount of stealing taking place within government and it's cronies.....
Believe me, these government crooks love to hide behind being called incompetent, they'd gladly play stupid fools to get away with all they be stealing.....
Economist 9 years, 2 months ago
Be honest and show us where the money is spent. Clearly show us with details ...like audits etc.
Give us Freedom of Information and we might be able to see that you are really telling the truth.
Until then we will all listen to you with a considerable amount of skepticism.
At the moment I get no comfort from your comments. In fact it sounds like more "mumbo jumbo".
TheMadHatter 9 years, 2 months ago
I challenge Dr. Minnis to come out and say that if elected they will pass a new Freedom of Information Act (that has teeth) and sign it into law (enact it with regulations and the PMs signature) so that it is actual operable law WITHIN 30 DAYS of assuming office or else he will ring the bell for a new election.
Note there is a current law passed in the House by the FNM that Ingraham never actually signed into effect. So we don't want that game again.
Does Minnis have the guts and loyalty to his country to promise this?
TheMadHatter
TalRussell 9 years, 2 months ago
Comrade Economist you give Tribune readers great humour with your call for "Give us Freedom of Information and we might be able to see that you are really telling the truth." Might I humour you back cuz as far as I know the PLP cabinet have not even appointed a Chairman or whatever title handle they carry - to head the Financial Disclosure Committee. Now, that is some real "mumbo jumbo" when you duck having members Honourable House, Senate and Senior Public Officials to fie their annual FDS on time as provided for under the threat of imprisonment,
You do know I is talking offenders from both sides the isles. Some them are classified as repeat offenders .
The moral of the law is to abide by the laws for government officials which are done already printed on the pages in the existing books - so why waste time pretending you are introducing new laws.
You don't need no FOI to find out who are the FDS offenders and whose on the list of the well known repeat offenders. How come no jail time has ever been served?
SP 9 years, 2 months ago
What accomplishments have MINISTER of State for Investments Khaalis Rolle achieved?
I swear, this guy has nothing of substance to justify his position over the past 3 years. What the hell were we paying him for?
TheMadHatter 9 years, 2 months ago
He is there to get all the documents he needs for the fast ferry - without having to wait like the rest of us for approvals.
BahamaPundit 9 years, 2 months ago
Bahamian independence was one of the worst business decisions in the history of the world. Who would trust these dancing, smirking fools with $5, let alone $6 billion. The Queen must chuckle to herself on a daily basis: what a bunch of idiots those majority rule Bahamians turned out to be!
TruePeople 9 years, 2 months ago
an she still head of state
BahamaPundit 9 years, 2 months ago
After the Bahamas is bankrupt and labeled a failed state by the IMF, I would not be at all surprised if it is discovered that Swiss bank accounts of our political officials contain 3 to 4 billion dollars of the peoples' money just sitting there.
Well_mudda_take_sic 9 years, 2 months ago
And let's not forget all of that money wasted on the trips made by Allyson Maynard-Gibson and Baltron "Bag Man" Bethel to Beijing China with their entourage, flying first class and staying in a lavishly expensive five star hotel.....
TruePeople 9 years, 2 months ago
to accomplish............ we guh eat Chinese tonight! ..... and thats pretty much it
MonkeeDoo 9 years, 2 months ago
BahamaPundit: We are not far from being designated a failed state. I would have thought that with all of the Agreements that we have signed with all of these countries that SOMEONE should be able to find out what the Christies, Gibsons, Martins have stashed in any country. If NOT then that is a failed good for nothing system.
TruePeople 9 years, 2 months ago
I dunno how our murder rate is higher than that of Afghanistan....
Economist 9 years, 2 months ago
Tal, you are right on!
Economist 9 years, 2 months ago
MonkeeDoo, we can find out. The only problem is that the state (The Bahamas) has to ask for the information. Guess who will not be asking.......emmmm....I wonder why???....
Well_mudda_take_sic 9 years, 2 months ago
The NSA knows where every copper has been stashed by these corrupt loony tunes, no matter where the accounts are or the name or vehicle they have used to open the account(s). Even if they arranged for their ill-gotten loot to be buried in the mountains of Tibet, the NSA knows exactly where and who dug the hole in the ground! It's only a matter of time now before these crooks face judgment day.....and it ain't gonna be a pretty situation given the age of many of them.....can't wait to see their faces behind bars in Her Majesty's Hell Hole.....whatever they have given to their family members, and whatever assets they may have purchased with monies stolen from the Bahamian people will rightfully be taken back for the benefit of the Bahamian people. Remember, Remelda Marcos was not even allowed to keep her collection of 5,000 pairs of expensive shoes!
Chucky 9 years, 2 months ago
When you exceed your total national budget by over 50%, and think this is reasonable.......
Just imagine if you made 50 grand a year, but your personal expenses were 75 grand, so you borrow 25 grand to get by on. How many years can you make this scenario work.
Interesting how these ruling A**holes claim to be religious / god fearing etc etc, yet they are really out and out criminals, liars , etc etc
TruePeople 9 years, 2 months ago
it can work indefinitely so long as you use the peoples money and not your own. or alternatively, sell your soul to the devil in IMF and maybe one day we'll be slaves again in order to pay off the national debt.
Haiti's being indebted to France for Colonialism is one of the main reasons why that country is so effed up. The first independent Black Republic in the world and the first independent nation in the Caribbean FARRR before any of the rest of us, and that colonial mentality still has us looking down on them like dogs.
Free yourself from mental slavery, only we can liberate ourselves
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