Opposition leader asks: Where’s the Fiscal Strategy Report?
NASSAU, BAHAMAS — Opposition Leader Michael Pintard yesterday accused the Davis administration of being in breach of key elements of the law regarding fiscal accountability and transparency.
Pintard, in a statement last evening, noted that while the Davis-led administration has made a commitment in its blueprint and in the Speech from the Throne that it would ensure greater accountability and transparency in public affairs, this has turned out to be “nothing more than empty rhetoric”.
“Ever since coming to government, they have continually reminded the public about their call for full accounting of COVID spending under the FNM (Free National Movement),” said Pintard.
“In much the same way we agree the information should have been provided, we similarly demand that they lead by example.
“In April 2021, the then FNM government — with the full support of the PLP (Progressive Liberal Party) in opposition — approved several key pieces of legislation that were created to modernize our debt management, public financial management and procurement frameworks.”
He added: “These landmark pieces of legislation made express provisions to radically enhance transparency and accountability, consistent with what the FNM had promised the Bahamian people.
“The Public Financial Management Act and the Public Debt Management Act came into effect on July 1, 2021.
“The Public Procurement Act came into effect on September 1, 2021.
“You would also recall that in 2018, the then FNM government enacted the Fiscal Responsibility Act, which also called for greater accountability and transparency in public finances and economic affairs.
“Unfortunately for the Bahamian people, today, the present Davis administration is in breach of many of the core accountability and transparency elements of these laws.”
Pintard argued that the Davis administration did not meet the November deadline for the production of the annual Fiscal Strategy Report as required by law.
“The administration instead indicated that they would instead provide the 2021 report immediately after the debate on the Supplementary Budget Bill,” said Pintard.
It is now weeks past the debate on the Supplementary Budget and we are into a new year. Still, we have no Fiscal Strategy Report.
– Opposition Leader Michael Pintard
“It is now weeks past the debate on the Supplementary Budget and we are into a new year. Still, we have no Fiscal Strategy Report.
“This Davis administration was late on its first-quarter fiscal report. They are late on the critical Fiscal Strategy Report and have provided no reason for this extended tardiness.”
He argued that the Davis administration’s failure to produce its medium-term fiscal strategy is “especially concerning” given the potential impact of the recent tax policy changes on the government deficits and debt.
“The government’s own published analysis — prepared by the University of the Bahamas — said on page two that the recent tax change would lead to a ‘worsening of the current account, the fiscal deficit and the debt-to-GDP ratio’,” said Pintard.
“With this prospect of a deteriorating fiscal situation, it is even more critical that the government releases its 2021 Fiscal Strategy Report immediately and share with the Bahamian people how it intends to move the country back toward balanced budgets and a sustainable debt trajectory.”
Pintard also noted that the Davis administration is late with the publication of the Annual Debt Management Strategy.
“Sections 11 and 12 of the Debt Management Act, 2021, require the strategy to be laid at the same November time frame as the Fiscal Strategy report,” he said.
“The House of Assembly is to debate the strategy by the end of January. We have seen no sign of this report.”
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