The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

THE government has spent over $177m on various COVID-19 relief initiatives in response to the health crisis, Minister of State for Finance Kwasi Thompson announced yesterday.

Mr Thompson, who is also minister of state for Grand Bahama, made the revelation after tabling the 2020 Fiscal Strategy Report for the first time in the Senate yesterday, where he also pledged the government’s commitment to continue providing social and economic support for those negatively impacted by COVID-19.

Noting that unprecedented times call for unprecedented measures, the minister said from March until October, the Minnis administration had spent over $177m in direct COVID support – a move he said was in keeping with the government’s promise.

Giving a breakdown of the figure’s expenditure, Senator Thompson said $22.8 million out of that number was spent towards public health, sanitation and other related matters, while $17.2m was used to fund essential food support programmes.

Through the food initiative, the minister said some 140,000 families across the country were able to be assisted by the government through its partnership with various NGOs.

The initiative, which was launched in early June, is expected to continue in the first quarter of 2021.

As it relates to unemployment assistance, Senator Thompson said the government spent $45.5m on supporting Bahamians who lost their jobs due to COVID-19’s impact.

He added the move benefited some 7,000 businesses, the majority of which were sole proprietorships.

Nearly 37,000 persons also received unemployment support “to the tune of over $63m through the end of September,” Mr Thompson continued.

Like the government’s food relief initiative, the unemployment benefit programme has also been extended to assist those impacted by COVID until next year.

However, Mr Thompson was clear that additional funds allocated by the government for the extension of those programmes is not a part of the $177m that has already been spent in response to COVID-19.

Describing the support measures as “unprecedented”, he continued: “Forty-four point four million was provided in tax credit/tax deferral as part of the government’s payroll support programme to assist companies in meeting their payroll expenses. To date, more than 60 businesses have availed themselves of this programme, protecting nearly 7,000 jobs.”

He said that $47.3m was allocated in small business continuity loans and grants, supporting approximately 1,000 beneficiaries and nearly 4,500 employees thus far.

“In addition to the $177m of COVID spend, the government committed to extend the food assistance program to end-March 2021; it committed $45m to extend the government’s unemployment assistance programme to the end of December, and more recently the prime minister announced the Cabinet’s commitment to continue the programme through end-January.”

Yesterday, Mr Thompson also sought to address concerns related to the valuation of the Bahamian dollar, noting the value still remains “as strong” as it was prior to COVID.

“Today, I am pleased to advise that as of (Tuesday), December 15, 2020, the foreign reserve levels remain near historic highs of some $2.39bn, or more than 37 weeks of import cover,” he stressed.

“Thus, I am pleased to cast aside any concern regarding the threat of devaluation of the Bahamian dollar. Despite the economic trauma of the last nine or so months, the prudent management by this administration has ensured that the Bahamian dollar remains as strong and as secure today as it was before the onset of this most devastating economic setback.”

Despite the country’s economic fall-out from COVID-19, Senator Thompson said officials are hopeful about the new year, expressing hope that the country will bounce back better than before.

To aid the country’s economic recovery, he said the government will be focusing on five key components in its 2020 fiscal strategy to help facilitate The Bahamas’ “return to a fiscally sustainable path.”

The five components include continuing a dynamic COVID-19 response, strategically recalibrating public finances, building economic resilience beyond COVID, optimising debt management and debt sustainability and having a proactive management of ongoing fiscal risks.

“Implemented together they will ensure that the government has sufficient resources and flexibility to meet the opportunities and challenges of governance for today and into the future; they will also foster a stable and dynamic macroeconomic environment that can stimulate growth,” he said.