Pintard says it’s “stunning” if critical policy plans were not outlined in FSR but Halkitis tells him “go read the report”
NASSAU, BAHAMAS — Economic Affairs Minister Michael Halkitis last night suggested Opposition Leader Michael Pintard was seeking to “muddy the waters” over suggestions that the government intends to introduce new taxes and initiate layoffs in the public service.
Pintard, in a statement yesterday, said Prime Minister Philip Brave Davis must urgently address the series of recent decisions and public statements being made by the Ministry of Finance “that are sending shockwaves nationally and giving the wrong signals internationally about the government’s commitment to be transparent and prudent in its management of our economy”.
Referencing an article published in a local daily, Pintard said it was alarming to read that the government has committed to new or additional taxes, and that it plans to reduce the number of public servants.
Mr Pintard should not seek to muddy the waters by seeking to interpret and have the public believe something that’s not in the report.
– Economic Affairs Minister Michael Halkitis
But in response to Pintard’s claims, Economic Affairs Minister Michael Halkitis said: “We advise the leader of the opposition to read the report and not go based on a media house’s interpretation.
“The report clearly outlines the government’s strategy.
“Mr Pintard should not seek to muddy the waters by seeking to interpret and have the public believe something that’s not in the report.”
Financial Secretary Simon Wilson recently told a local daily that the rebounding economy will help the government restrain public sector wages to $660.5 million in four years’ time — a sum which is $10 million below the current budget.
Wilson also reportedly indicated that “new tax measures” will be required to achieve the projected 55.7 percent increase in government revenues over the next four years.
Pintard said: “It is reported by the Ministry of Finance that the government will introduce ‘new revenue measures’.
“What is especially worrisome is that the details of these new revenue measures were not expressly stated in the government’s Fiscal Strategy Report 2021 (FSR) that was published just last week.
“If that is the plan, why was it not stated in the report?
“Several critical questions must be answered by the prime minister: What are these new revenue measures?
“Which new taxes will be introduced? How much will the new taxes yield? Why cut the VAT (value-added tax) only to increase taxes later?
“What will be the impact on Bahamian households and businesses?”
He added: “The Ministry of Finance also reported that the cuts in public sector salaries outlined in the FSR will be facilitated by transitioning public servants to the private sector.
“We demand to know how many public servants will be let go from the public service. From which ministry departments and agencies?
“Are these ministries, departments and agencies presently overstaffed? Were the public service unions consulted? Were the respective ministers consulted and did they submit the recommendations of staff cuts forecasted by the Ministry of Finance?”
Pintard said it was “stunning” that these critical policy plans of the government were not outlined in the FSR.
