NASSAU, BAHAMAS — Economic Affairs Minister and Senator Michael Halkitis yesterday accused the Minnis administration of accumulating several billion dollars in “non-productive debt” over the past two years.
Halkitis slammed the former administration for not developing new infrastructure that would enhance the growth prospects of the country while making his contribution to the debate on the mid-year budget in the Senate yesterday.
“During the past two years, the former administration accumulated several billion dollars in non-productive debt; no new schools; no new prison and no new infrastructure whatsoever that would enhance the growth prospects of the country,” he said.
According to Halkitis, high levels of “indiscriminate borrowing,” resulted in an increase in interest payments of $56 million.
He continued: “While the entire amount of interest cannot be avoided, it certainly could have been reduced had the Government acted more prudently in securing debt on behalf of the Bahamian people.”
“As this administration promised the Bahamian public when we came to office, we are committed to reforming the country’s fiscal health. This is one of our top priorities and the Bahamian public can already begin to see the signs of recovery in only a few months. In contrast to the extraordinary deficits in the past few years, with little tangible results to show, during the first six months The Bahamas experienced a net fiscal deficit of only $285.7 million.
“This represents a 61.1 percent or $448.6 million reduction in the deficit as compared to $734.3 million during the same period in the previous year.”
Halkitis noted that while the Opposition would argue that the current administration is simply taking credit for their efforts when last in office, “the results do not lie”.
“The budget we met in place when first coming to office estimated a net deficit of $951.8 million,” he said.
“Thanks to efforts to enhance revenue collections and reduce non-essential expenditure, our supplementary budget reduced this deficit estimate to $858.6 million. As we stand at the half-year mark, the net deficit is estimated at $287.7 million and currently trending to an even lower deficit than estimated. I call this progress. I call this fiscal responsibility. I call this good governance.”
Halkitis added: “While in opposition, we contended that the curfews and lockdowns did little to prevent COVID-19 spread and only stifled our economic rebound. In November 2021, the Government eliminated the then existing Emergency Orders, which imposed limitations on the movement of persons and curfews restricting the hours of business operations.
“Based on preliminary data from the Treasury, shortly after eliminating Emergency Orders, Government tax receipts in December 2021 immediately rebounded to $202.1 million, far beyond pre-pandemic levels of $167.8 million in December 2019.”
He also noted that similarly, in January 2022, government revenue firmed to $232.1 million, in line with the $234.9 million posted in January 2020 before the onset of the pandemic.
“Imagine the suffering that could have been alleviated, the pain that could have been quenched and the cries that could have been answered if the Government at the time had only listened and ended these cruel Emergency Orders sooner,” he said.
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