The Tribune

THE debut full Budget for Prime Minister Philip “Brave” Davis has arrived – and as ever with a Budget there is a lot to digest.

Starting with the best news, it is that the country’s revenue performance is improving. That, of course. comes from a starting point of being at a standstill with global tourism at a halt and lockdowns to stop the spread of COVID, but it is the speed of the recovery that is encouraging.

Tax revenue is up by half, and Mr Davis expects more revenue growth ahead.

There are some questions about the figures – the FNM highlighting what they felt were some inconsistencies from the mid-year Budget just a few months ago, and the $1bn hole that Mr Davis talked about in the government’s finances in terms of liabilities and unfunded obligations seems likely never to be fully explored as he spoke about having paid down arrears and outstanding balances. FNM leader Michael Pintard pointed out an increase in expenditure in this budget, but a lack of revenue enhancing measures or cost cutting, which made him query how the government could hit its financial targets.

So what other talking points were there?

Well, there was talk of a new prison to be paid for with a public-private partnership, and $6m for new Defence Force vessels.

There’s a $200m Family Island Development Trust Fund to improve infrastructure in the outer islands, to be funded by 10 percent of revenue collected in the Family Islands from property tax and road fees. That will be one to watch, and we look forward to more detail on spending and oversight.

Then there are extra wages – with a proposal to increase the minimum wage, and salary increases for teachers, and retention bonuses for both teachers and nurses.

Mr Davis was not oblivious to the rise in the cost of living recently, pointing out these rises would help Bahamians deal with that surge in costs.

There is more money for Bahamian farming, and for infrastructure, plus a move to improve healthcare, although the $10m allocated for catastrophic healthcare in the Budget will likely not go very far.

Then there is an extra 50 percent for the social services budget, and a large exemption for religions organisations, trade unions, civic organisations and burial societies – which will all now be exempt from property tax.

One area the government hasn’t lived up to its targets is in its plans to cut subsidies to state-owned enterprises, such as Bahamasair and the Water & Sewerage Corporation. In fact, it’s going the other way – with the amount of subsidies going up by almost $31m in this Budget.

Overall, though, it seems a positive Budget. Extra money for a number of workers, progress towards a minimum wage increase, and some improved funding for areas that could use it – particularly the Family Islands and social services as they take on feeding those affected by the pandemic previously handled by the National Food Distribution Programme.

There are some questions over whether the government can meet the financial targets it has set – but the positive direction of revenue is to be welcomed, and we must hope that continues.

Is there anything startling in the Budget? No, there are no rabbits being pulled out of hats to amaze us all – but there was never likely to be given the country’s financial position.

More analysis shall come, of course, as we all take a closer look as details are released.