NASSAU, BAHAMAS — Government subsidies saw a marked increase in the 2019/20 fiscal year as a result of Hurricane Dorian and COVID-19 relief measures, with outlays to Bahamasair having “more than doubled”.
The Ministry of Finance released its fourth quarter fiscal snapshot and report on budgetary performance for fiscal year 2019/20 yesterday.
It noted that subsidies—comprising transfers to government-owned and/or controlled units that provide commercial goods and services to the public—expanded by $34.8 million (8.9 percent) to $427.5 million.
“The 11.7 percent excess over the revised budget reflected the additional funding earmarked to assist with Hurricane Dorian and COVID-19 relief initiatives,” the report read.
“Subsidies to public non-financial corporations increased by $52.0 million (14.9 per cent) to $400.1 million, as the government facilitated the hurricane-related relief and restoration activities of several State-Owned Enterprises (SOEs).
“Specifically, outlays to the national airline more than doubled, to $27.4 million from $13.3 million in FY2018/19, primarily representing additional allocations to cover various operational costs, and the cost of repatriation flights from Abaco and Grand Bahama to New Providence.”
It was further noted that transfers to the Water & Sewerage Corporation to assist with repairs to water mains, increased by $15.9 million (51.3 percent) to $46.9 million, and these outlays were also higher for the Public Hospital Authority, by $22.3 million (9.7 percent) at $252.5 million.
Meanwhile, outlays to the National Health Insurance Authority were relatively stable at $24 million.
Subsidies to private non-financial institutions were however reduced to $25 million from the prior years’ $42 million which was elevated by settlement of arrears.
“Boosted by hurricane and COVID-related spending, the category of capital transfers grew five-fold to $155.6 million, to represent 95.9 percent of the revised budget,” the report continued.
“Within this envelope, the government contributed nearly $30 million towards electricity restoration, $11.0 million for water rehabilitation, $21.8 million for hurricane cleanup activities, and a further $8 million for temporary housing.
“An aggregated $46.3 million was provided to the Small Business Development Centre to assist small and medium sized businesses with both hurricane repairs and business continuity loans and grants to support small businesses in the face of COVID-19.”
Loading ...
