PLP leader Philip 'Brave' Davis.
OFFICIAL Opposition Leader Philip Davis yesterday released projections for the upcoming 2018/2019 budget, predicting an increase in VAT, Customs duties and the introduction of new taxes.
Mr Davis said country’s economic reality will clash with the Minnis administration’s key public policy promises, which he deemed fiscally contradictory and highly irresponsible.
“It [the Budget] represents a real opportunity to present a growth agenda which this administration is sorely lacking. In its first year, the administration seem more fixated on making alarmist statements on the issues of fiscal management and accountability, which damaged the reputation of the country rather than improving the lives of Bahamians.”
He continued: “As a result, in the first year in office many of the gains made by the previous administration have evaporated. For example, there has been anaemic revenue growth notwithstanding the opening of Baha Mar. Revenue for the first nnine months is trending on par with actual revenue for the last fiscal year. This is disturbing as the last fiscal year’s revenue yield was decimated by Hurricane Matthew.
“With the phased opening of Baha Mar and the absence of major storms impacting New Providence, revenue yields should have been at least ten percent above the last fiscal year. A five percent increase in recurrent revenue would have allowed the Government to fully execute its capital budget.”
Mr Davis noted expenditure levels have not dropped in comparison with last year notwithstanding”widespread yet very selective terminations of contractual employees”.
While he said the Government has reduced capital expenditure to near historic lows as a percentage of GDP, Mr Davis argued it was essentially a deferment of expenditure and not a true budget saving, adding such a deferment would have a visible and negative impact on maintenance of infrastructure and the commencement of new projects.
He accused the FNM administration of sabotaging the government’s ability to mobilize resources through Public Private Partnerships (P3s) by “walking away” from agreements made by the former administration.
“This means that staff would have to remain in the condemned General Post Office building for an indefinite period; the Road Traffic Department’s emergency residence in the National Stadium has now become permanent; no new police facility for Harbour Island; and great uncertainty on whether the investors which are funding the construction of the new complex in Eight Mile Rock would ever be paid by this Administration,” Mr Davis said.
Promises were identified as: the elimination of VAT on a variety of goods and services at an undetermined cost; the introduction of economic empowerment zones in New Providence; reduce the deficit by over 50 percent in the upcoming fiscal year; provide free tuition at the University of The Bahamas; increase the use public private partnerships; and keep recurrent expenditure growth to less than three percent of the previous year’s level.
Mr Davis said: “It is safe to assume, given the current situation, that the public can expect any or all of the following: an increase in the VAT rate to offset the elimination of VAT on certain goods and services, the introduction of the economic empowerment zones in New Providence and to absorb the increase in the subvention to the University of The Bahamas.
“An increase in selective Customs and excise tariff rates as well as real property tax rates to account for the anaemic revenue growth of the past fiscal year.
“Introduction of new and additional taxes to fund the deferred capital expenditure and assist in the ambitious deficit reduction target of the draft Fiscal Responsibility Act.
“A capital budget which relies heavily on P3s but with significant implementation challenges in mobilizing Bahamian investors due to the Government’s indifference to the current P3 investors.
“No real increase in the recurrent allocation for any of the critical areas such as health, education and national security, so the manpower and skills deficit in national security, health and education would continue to widen.
“A freeze on public service increments or a reduction of public service employment levels. Public sector salary increments automatically upwardly adjust recurrent expenditure by about one percent per annum. Increments along with the increase in interest expenses and principle amortization would likely breach the three percent rule.
“Reduction in subvention to public corporations would certainly mean job losses.
“Reliance on the sale of assets to fund current expenditure.
He added: “For a Government without a real growth agenda, this is a bleak outcome and a recession inducing budget. However, it is unavoidable and although the Budget Communication would include the usual soaring oratory flourishes, behind those words would be a grim picture and it would grow grimmer as we traverse the fiscal path outlined by this Government.”
Comments
John 6 years, 7 months ago
Let’s just hope this is political hogwash and no new taxes will be saddled on the backs of Bahamians. Many who are currently drowning in debt cannot take it. The expected increase in government revenue may actually be a decline
Well_mudda_take_sic 6 years, 7 months ago
Davis conveniently neglects to mention that Minnis and Turnquest will also be budgeting for a huge increase in the salaries and benefits of parliamentarians, if not in the upcoming 2018/19 budget then in the very next set of budget adjustments that follow. Minnis and his cabinet ministers have all too quickly become an 'all for us' bunch of politicians on par with the last Christie-led government.
DDK 6 years, 7 months ago
If the FNM gives Parliamentarians a raise and hikes taxes they can DEFINITELY kiss a second term good-bye. Parliamentarians should show solidarity with the voters by taking salary and benefit CUTS, at least until such time as there is a marked improvement in the Bahamian economy for all those who are prepared to work for a living. Pensions for M.P.'s and P.M.'s should be entirely eliminated. Pensions for ANY civil servants should be on a contribution basis.
Porcupine 6 years, 7 months ago
I agree on the need to eliminate pensions for the MPs and PM.
sheeprunner12 6 years, 7 months ago
Hope Brave can read the National Budget documents when they are converted to accrual format ...... He is so used to hiding bills and not accounting for line items until 2 years later, that this format will sshock him next month.
bogart 6 years, 7 months ago
Very clever to jump over to that stage.......but the next stage is to account for the money and where fraud, curruption, malfeasance, bribe taking, collusion, complicit, overpayments on fraudulent contracts, overpayments for works not done satisfactorily, persons victimized for speaking up against fraud, persons who arein authority knew but said nothing, the old boys network protecting wrongdoers squandering money, persons soliciting advantages for doing the job and redirecting wastages, continuance of systems purchased to do little to support cronies,.....victimizing minority investors....contracts favourite favouritism...directors sitting on boards knowing and doing nothing...and those claiming to not know ...and those not knowing and doing worse perpetuating and protecting other friends in the profession....and a whole lot more where persons in authority wasted the blood and sweat and tears pore sick...jobless.. Bahamian taxpayers struggle to pay and was weasted......BEFORE...ANY CONTINUING,..REPEAT .OF THE SAME.....patient need to be triaged first....we checking out the sickness....cauterizing stopping hemmoraging,,,stopping the poisons....
Well_mudda_take_sic 6 years, 7 months ago
It has been over a year now with millions of taxpayers' dollars spent on forensic audits and other investigations of one kind or another, but not a single crooked politician or senior government official from the corrupt Christie-led government has been convicted and sentenced to prison. This fact alone speaks volumes about the very misguided political steps of Minnis and his rather foolish style of governing. Minnis has squandered valuable time and resources leaving most people to believe he has betrayed his solemn promise that it would be their time.
licks2 6 years, 7 months ago
What a political waste. . .do you ever take time to look over what you be saying? Or you just don't gave one red penny what you say. . .as long as you say something? I thought the same thing when I say ya party deputy spoke in the papers today. . .I gave yinna a new name. . .Dumb. . .Nucklehead. . .Abnormal party. . .grow-up!!
TalRussell 6 years, 7 months ago
Despite red shirts having proven be a major F#ckup at governing - still the problem is the 91,409 voting red 10th May 2017, are not flocking over to join Comrade "Brave".... and i see no signs of a early change voters thinking... seemingly they are preparing to become "party homeless"...... which presents many puzzling questions about what will be the mood voters over remaining 4-years mandate Imperial red shirts government?
John 6 years, 7 months ago
The government has managed to put many plugs in the outflow of revenue due to corruption, mismanagement, nepotism, overbugeting or inflated costs but it must now focus on the revenue side and the ‘untouchables ‘. Those individuals and companies that pay little or no taxes. This may include persons who live in the Western end of New Providence and parts of the North Bahamas
Well_mudda_take_sic 6 years, 7 months ago
Most of us have long ago figured out from all of your whining that your last dying breath will be accompanied by the words: "The wealthy white foreigners living in the gated communities out West are responsible for the very miserable life I have had." Suggest you start whining about something more much meaningful for the remainder of your time here on earth. Or you could spend your remaining precious time singing even more praise for and about the likes of Sebas Bastian and Craig Flowers!
happyfly 6 years, 7 months ago
This government better not add or raise any taxes on the Bahamian people until it can show that they have the balls to do something about the looting of the public purse by filth bags such as Davis. Otherwise, they will get voted out in the next elections, the criminals will get back in and this country can kiss it's ass goodbye.
Sickened 6 years, 7 months ago
I believe everything that comes out of Davis' mouth (at least the parts that he doesn't mumble incoherently - which is not much). I'M JOKING!!!! I don't believe anything he says. In fact... I don't even listen to anything he says.
sheeprunner12 6 years, 7 months ago
Indeed ......... He is a poor (unfit) spokesman for the HM Opposition ..... He would do better to leave any Budget analysis to Cooper...... Brave has too much political baggage and lack of accountability since 2012 for anyone to believe him on anything to do with National Budgets ........ UR2.0 Slush Fund, BAMSI, MOPW, Bahamasair, BPL.
hnhanna 6 years, 7 months ago
LMAO another Fake News
Truism 6 years, 7 months ago
Let's wait for the actual budget presentation and declare that the man, Davis, was in the room while it was being prepared. If I wasn't sad & sickened I'd be LMAO.
realfreethinker 6 years, 7 months ago
Hahahahahaha. I needed a good laugh
OMG 6 years, 7 months ago
What is it about Davies and Fred and all the other ex PLP MP's that they have the laughable gall to talk about extra taxes when they are totally responsible for the terrible financial state of the economy. What worries me is that the FNM will need to do some drastic pruning financially and whilst that is necessary it will open the gates to the uneducated who want instant gratification and will vote PLP in the next election. Like all maladies medical or financial you can only put off treatment for so long and failing that the IMF will dictate PLP or FNM.
sheeprunner12 6 years, 7 months ago
Agreed
sealice 6 years, 7 months ago
these the same increases they were trying to sell to us before they lost their arsses??
stillwaters 6 years, 7 months ago
Every time I see Brave, or Fred Mitchell, or Bradley Roberts, I just wish we could go back to the day you could sling big rocks at people without getting locked up!!!!
Truism 6 years, 6 months ago
Who just got socked with a conch shell?
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