NASSAU, BAHAMAS — While the net deficit between July 2021 and June 2022 decreased by $262.3 million, the Central Government’s net debt increased by $414.3 million.
The status of the country’s finances is contained within the Fiscal Summary Report for June 2022, a monthly publication by the Ministry of Finance.
Noting increases in revenue during the month of June 2022 over the previous month of May, a statement from the Ministry attributed the majority of the increase to “revenue collection from international trade and transaction taxes” to the tune of $13.1 million.
When compared to June 2021’s figures, however, June 2022 revenues were said to have decreased by 27.5 percent, or $84 million.
The statement explained that there were decreased collections of “$61.1 million in excise tax owing to timing delays related to tax payment, $13.7 million in VAT largely related to VAT on property, $9.7 million in the sale of goods and services, and $19.4 million in other non-tax revenues.”
While it is important to bear in mind that these are historical numbers and that the outcomes must be viewed against subsequent developments, I believe that overall the numbers sends an optimistic signal.
– Hubert Edwards
Despite this, Chairman of the Organization for Responsible Governance’s (ORG) Economic Development Committee Hubert Edwards believes the report is an “optimistic signal” of the country’s financial standing.
“One positive to take away is that the change showed relative stability in the proportion of domestic to foreign debt with 40% of the new borrowing being local,” said Edwards.
“Securing greater proportions of borrowing through domestic sources continues to represent a significant opportunity for government in the managing of the current debt portfolio.”
Edwards also noted that the Fourth Quarter Report (2021/22), which he said should have also been published in June, will provide the public with greater context and cross-checking of information when it arrives.
The full June 2022 Fiscal Summary Report is available for public viewing at www.bahamasbudget.gov.bs.
