Nearly 80 percent of inherited arrears eliminated, says finance minister

Nearly 80 percent of inherited arrears eliminated, says finance minister
Prime Minister and Minister of Finance Dr Hubert Minnis presents the mid-year budget statement in Parliament, Wednesday, February 24, 2021. (BIS PHOTO/ULRIC WOODSIDE)

NASSAU, BAHAMAS — The Minnis administration has eliminated nearly 80 percent of the $360 million in arrears it inherited when it assumed office in 2017, according to Prime Minister Dr Hubert Minnis.

During his mid-year budget statement for the six months ending December 2020, Minnis noted: “The government continued its commitment to reduce the $360 million in arrears it inherited in 2017 and, as of December 2020, approximately $282.7 million in arrears have been settled since the start of the programme.”

The Minnis administration has argued the value-added tax (VAT) rate hike from 7.5 to 12 percent it introduced after taking office was necessary to pay off the $360 million in past-due government arrears with no budgetary allocation.

Minnis noted that his administration will continue its aggressive response to COVID-19, provide social support to the most vulnerable, digitize government business services, continue to focus on the ease of doing business and promote a digital economy — with support for the Central Bank’s Sand Dollar — as well as implement elements of the Economic Recovery Committee’s recommendations.