Minister of Economic Affairs Michael Halkitis.
By EARYEL BOWLEG
Tribune Staff Reporter
ebowleg@tribunemedia.net
THE Davis administration will present its budget for the next fiscal year this week, and Economic Affairs Minister Michael Halkitis says the administration is maintaining its commitment to not raising taxes.
The administration pledged not to raise taxes last year as well, but the government still introduced a budget that increased numerous fees.
Mr Halkitis, during an Office of the Prime Minister press briefing last week, said the government will not cut expenses, but will find new sources of revenue and improve revenue administration to get optimal results.
“We felt that over a multi-year period, we will see our deficits go down, and borrowing requirements go down, and our debt-to-GDP ratio go down,” he said. “I can happily say that we have seen the positive results of that so far in the last two budgets that we have presented.”
“I can say, without speaking out of school or pre-empting anything, that we will see that positive trend continue. So you, the Bahamian public, will be able to see the progress that has been made over the last two and a half years in terms of, as we say, getting the fiscal house in order.”
“The next two years and going forward will be a critical period in our country in terms of the economy because there was a very rapid recovery as we came out of COVID. We saw growth rates in the double digits, and the economy grew coming off that low base.”
“Now, as we normalise and move into the medium and longer term, we should see those growth rates get
back to normal, but we are very happy about the forecasts in terms of growth rates around 2 percent, two and a half per cent, which are much better than we have been experiencing over the last 20 years pre COVID and so this is a very, very critical period, we will take the opportunity to inform the public about the improvements, but always mindful that we have to maintain the discipline.”
Mr Halkitis also confirmed that the government is still engaging Rothschild and Co, a company advising the administration on how to refinance the country’s debt. Mr Halkitis said the contract with the company has been extended for “maybe another year or so”.
“Working together, I think the savings has been phenomenal,” he said. “I mean, we’re talking about into the tens of millions of dollars in terms of the improvement on how your your debt is trading.”
The government intends to implement a 15 percent global minimum corporate tax on multinational corporations during the upcoming budget cycle.
Comments
bahamianson 5 months, 4 weeks ago
Thats all you do is increase taxes or add new ones and still cant manage the money you collect. You can do what you wanr when you want to , but do nothing the people request. All this money collected and yoy still need more. When will it be enough? I went to buy wholesale patties and realized that I paid $1.22 cents for one. Two months ago , I paid $1.05 cents for one. Everything keeps increasing and there is no value for money. The population pays for the increase in everything.
Sickened 5 months, 4 weeks ago
One can only laugh with Halkitis, Davis or that Fox hill gall open their mouths. Such a waste of air. Why do they refuse to cut expenses? Oh I know why, that's where their side income and votes comes from.
moncurcool 5 months, 4 weeks ago
Someone please explain this voodoo maths to me please. You not cutting expenses, not raising taxes, but finding new sources or income? What sources of income has our governments ever had other than to raise taxes on the people?
ohdrap4 5 months, 4 weeks ago
Selling patties and sugary drinks in govt offices?
DonAnthony 5 months, 4 weeks ago
It is possible: Bahamas overflight fees were introduced several years ago and generated $43 mill in income last year, the new minimum corporate tax on multinationals w more the $750mill euros in revenue is estimated to generate a new income of $145 mill annually, finally charging vat on private cruise island revenue in the Bahamas etc. we need more of these innovative taxes that almost exclusively target foreigners. That said more than anything we do need to cut expenses, particularly the $500 mill a year used to subsidize loss making govt corporations. Privatize BPL immediately!
Porcupine 5 months, 4 weeks ago
With all due respect, the rise in the overall cost of living in the world is very much a product of privatization. I grew up in the US where all national enterprises managed to keep administrative costs to a minimum, services reasonably priced, while allowing for healthy competition. Once privatized, most every business seeks to maximize profits by ANY means possible. They do not care about providing good service. Period. Most of these means translate into mere financial considerations, with absolutely no regard for the social consequences of their actions. Monopolization, stock buy backs solely to benefit the share holders, cutting back on services and reducing customers ability to file complaints, and on and on. I have heard this call for privatization for far too long as if it is some magic bullet. Clearly, to any honest educated person, it simply hasn't worked. Mr. Don, since BTC has been privatized we have seen a rapid and certifiable decline in advertised services, customer service and almost zero accountability. URCA was supposed to help hold BTC to account. An unmitigated failure. Since BTC has closed our BTC Family Island office, I have been trying to get them to correct my own account which I found that BTC has been double billing, by their own admission. They are quick to call you to tell you to pay your bill from their offices in Jamaica, but refuse to correct their mistake. I refused to pay my bill until they resolved "their" admitted mistake. They shut off my service. I still have received no resolution from BTC, not even a response from URCA. Privatization my arse.
DonAnthony 5 months, 4 weeks ago
And you are happy with the service you receive from govt owned corporations? Are you happy being taxed to subsidize these loss making entities to the tune of $500 mill a year? BPL has $500 mill in legacy debt, is inefficient, and dictated to by a terroristic union precisely because it is govt owned and every Bahamian suffers terribly and has suffered for decades because of it. Privatization is not always a perfect solution, but govt owned is almost never a good one.
Porcupine 5 months, 4 weeks ago
It used to be, when we had some honesty in government, or in this country, better yet. We know exactly why the "government run" enterprises have failed. Our people have stolen everything not bolted down. I feel ya, Don, but the answer ain't privatization. The answer is in cultivating a nation to rise to the higher moral ground. We have not done so. We are a pirate nation, where far, far too many of our people are on the take. Our government was not dropped here from space. They are a fair representation of who we, as a people, are.
moncurcool 5 months, 4 weeks ago
Name me one government enterprise that has given service and is not bankrupt, and always depending on a subsidy from government to operate?
Government enterprises are not the answer. It is political and no accountability. Prune for bad financial operations.
ExposedU2C 5 months, 4 weeks ago
We need many more Bahamian engineers and much fewer Bahamian lawyers, especially the kind of lawyers who have little business sense and decide to become politicians make their nests. The elderly among us remember when BEC and BATELCO were efficiently run, profitable, and customer focused enterprises that were the envy of our region.. Back then these enterprises employed many well educated and trained Bahamians with pride in their work ethic and ability to serve the people.
Unfortunately all of that went out the door when SLOP and the PLP hierarchy decided dumbing down successive generations of Bahamians was their only way to preserve political power. Upon obtaining majority rule, SLOP and the PLP hierarchy wasted no time in starving our public education system of the funds and foreign teachers it needed to ensure new Bahamian engineers and other skilled Bahamian workers would eventually exist to replace those who retired.
Today we sorely lack well educated and trained Bahamians in many diverse technical fields because so few are willing to accept the type of government interference that goes on at SOEs by clueless lawyers who decided to become politicians to feather their own nests. The fraternity of corrupt politicians is also responsible for the harmful brain drain our country has been experiencing for decades.
Too many young Bahamians get an excellent education abroad in the STEM subjects and then decide to live abroad because they simply do not want their careers in their chosen fields interfered with or ended abruptly by corrupt politicians who are clueless about what's best for our nation and seem hell-bent in destroying it for their own personal gain and political survival at any cost.
Until we get the crooks out of politics, they and their cronies, both foreign and local, will feast on the PPP model of feeding our SOEs to the local and foreign business vultures who will pry every copper they can from the pockets of Bahamians. Affordable electricity, potable water, communication, etc. are vital to our people, our country's overall productivity, and our national security interests. These types of products and services should not be in the hands of profit hungry people in the private sector who will defeat whatever regulations are put in place to protect the Bahamian public.
moncurcool 5 months, 4 weeks ago
Again, all taxes that you mentioned.
And even when you increase taxes as you say on foreigners, they look to go where they can get the best cost. So now we start to tax ourselves out of the market for their services.
bahamianson 5 months, 4 weeks ago
They added that license for anyone rowing a hotdog stand and other vehicles doing the same.that generatrd new tax revenue for them. They keep looking for more money to take from us.
Porcupine 5 months, 4 weeks ago
"The administration pledged not to raise taxes last year as well, but the government still introduced a budget that increased numerous fees." So, would the Tribune be out of place to call these people liars? Why not? So, why do you continue to interview and publish words from proven liars? Get with it Tribune. This criminal administration is made up of liars. This is not me saying this. This is your own paper saying this. No shame Tribune?
sheeprunner12 5 months, 4 weeks ago
Porcupine ............ I don't know where you reside in the 242.
However, I can feel your pain.
For an Out Islander (because Nassau doesn't treat us as Family), services by BTC, Cable, banks & the other SOEs are declining by the year. Just consider Bahamasair cost of tickets increase in the past 3 years.
Quality of life is declining while the cost of living is increasing ........... Taxes, fees, add-ons etc. are making life very difficult to enjoy for the average Bahamian income earner (less than 50K pa).
Porcupine 5 months, 4 weeks ago
Without question, this is the case. The only way forward, in my opinion, is to continue to rally around these important issues and stick with it, encouraging a wider debate among our people. Those of us who speak up and speak out are targeted by our government. This is unfortunate. For our own government is eliminating the possibilities for positive, non violent change. At some point, as history clearly shows, when the people have nothing to lose.......................... Bahamians will be no different. The political class has become the criminal class. I guess we're not that special, after all. Thanks for speaking up.
ThisIsOurs 5 months, 4 weeks ago
99% of Bahamians committed to a healthy lifestyle. This should work well for us.
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