“This chicken will come home to roost in due course”
NASSAU, BAHAMAS — The nine-month fiscal snapshot released by the Minnis administration underscores the “dire set of circumstances” this nation is currently facing, according to Shadow Finance Minister Chester Cooper, who accused the administration of being lost and without a plan.
The Progressive Liberal Party (PLP) deputy leader and Exumas and Ragged Island MP said the report demonstrates that this nation is trending toward another missed revenue target and a deeper deficit if spending continues on its current course.
According to the Ministry of Finance, the country’s fiscal deficit in the nine months ending March of this year ballooned nearly 250 percent compared to the same period of the prior fiscal year, widening from $251.3 million to a massive $878.2 million.
Cooper said: “The entire thing tells a tale of poor planning and a government bankrupt of good ideas. Borrowing is already substantially higher at the nine-month mark than is budgeted for the entire fiscal year.
“This administration has borrowed another $2.4 billion gross this period. The government has made no contributions to the sinking fund to repay much of that debt. Further, there is a resultant alarming increase in interest expense as a result of the misguided borrowing policies of the government.
“We are in effect borrowing to pay the light bill with significant sums in foreign currency as this administration boasts of its reserve levels. Amidst the back-patting, we should simply call it what it is.
“National debt itself has grown by $1.3 billion, with the government debt nearing $10 billion. Debt amortization payments have grown tremendously, while debt repayments are still outstanding.
“Vendors and contractors report significant arrears. Public sector employees continue to complain about sums due to them, whilst this administration boasts of a $60 million reduction in this category.
“We urge the government not to play games in this regard, as this money would also likely be injected back into the economy once paid.”
Cooper also criticized the Minnis administration’s real property tax forgiveness plan, asserting it was borne as an act of clear desperation and has yielded “paltry” results compared to the actual amount outstanding.
“They boast that this initiative increased property tax revenue by $11 million over a comparable period,” said Cooper. “This analysis is disingenuous given that the third quarter of the fiscal year accounts for the bulk of the property tax collected on an annual basis.
“The true impact of this initiative can best be measured by its cost. The government should publish how much of the government’s money has been given up in this effort.
“This again is a testament to the fact that the Revenue Enhancement Unit should have never been disbanded.”
He further noted: “The other issue is the revenue shortfall. The fiscal situation needs to be addressed urgently as it is unlikely that the government would achieve its modest target for this fiscal year.
“The planned implementation of a tax of gaming winnings has done nothing due to predictable poor implementation and legal challenges. Meantime, the government is once again starving capital works by several hundred million dollars in what is suspected to be a ploy to make the deficit look better, though there really is no prettying up that picture.
“This is temporary and artificial given the myriad of contracts, politicking and ribbon cuttings across the country as we head into another election season. This chicken will come home to roost in due course.”
