The Tribune

By DANIELLE BARNES

DEMOCRATIC National Alliance Deputy Leader Chris Mortimer criticised the government's 2017-2018 Budget in a press release, saying it "favours the rich but does very little for the small man".

Mr Mortimer said the Free National Movement (FNM) administration retreated from many of its initial campaign promises and commitments, which leaves him and the DNA questioning the plans the new government has for the Bahamian people.

"The FNM has backed away from its pledge to reduce value added tax (VAT) on core items and services," Mr Mortimer noted. "Similarly they have also backed away from their inner-city tax initiative which was supposed to be a hallmark of their government."

Mr Mortimer also questioned the FNM administration's promise of "no new taxes" in the upcoming fiscal year.

"We are left to wonder if Minister Turnquest's declaration of 'no new taxes' was true and sincere. At the rate at which the FNM has backed away from central themes of their 2017 campaign, we are not prepared to believe that the FNM administration will not back away from their promises of 'no new taxes' or little else it has proposed to do."

Mr Mortimer also denounced the FNM's plan to borrow more than $720m -- which covers a period of two fiscal cycles -- saying that it is utterly "unbelievable and unthinkable".

The DNA believes that it is too soon and too much to borrow for the 2017-2018 fiscal year.

"The conventional wisdom is that if you borrow that much in advance on the expectation of expenditure, without even presenting a budget slimming programme to go along with it, you will run the risk of spending that much you forecasted to borrow and we will be back to higher debt for the foreseeable future."

Mr Mortimer said that there are still unanswered questions on the magnitude of this borrowing.

He asked: "Where will the money come from to finance this debt? Will the VAT rate be increased?"

The DNA also projects that the final deficit for the 2016-2017 budget will exceed $500m.

"We hope that the new minister does not transfer the accounting cost of the 2016-2017's debt into the new 2017-2018 fiscal year," Mr Mortimer added.

Mr Mortimer also said the narrative between the FNM and Progressive Liberal Party is ominously similar.

"Both of them have exploded the country's debt.

"This is the budget for the rich and not the small man, or the inner city," he said.

Mr Mortimer concluded that the DNA is prepared to hold the government's feet to the fire and to the promises which they made to the Bahamian people.

Last week, Minister of Finance K Peter Turnquest announced the government's tax relief measures which feature the elimination or reduction of import duties on clothing, accessories and on a number of food, beverage, personal care, car parts and accessories, including those needed by those who are disabled.

However, what was missing from Mr Turnquest's budget communication was the FNM's election campaign promise to eliminate VAT on breadbasket items and other areas.

When questioned about this, the East Grand Bahama MP told reporters that this pledge could not be delivered immediately because of the overspending and unpaid bills left behind by the Christie administration, calling it a "trade off".

"Literally two days ago, we had to say let's be conservative, before we go giving out concessions, let's be sure we have the house covered," Mr Turnquest told reporters last Wednesday.

Mr Turnquest also told the House of Assembly during his budget communication that the current fiscal year is "far bleaker" than anyone could have imagined as the Christie administration left "the cupboard bare".