Thompson accuses Davis admin of adopting many economic policies from Minnis admin
NASSAU, BAHAMAS — The opposition has demanded that the 2021 Fiscal Strategy Report be tabled in Parliament and debated, while claiming that the report fails to address a number of key issues.
Shadow Finance Minister Kwasi Thompson, in a statement, noted that Section 10 of the Fiscal Responsibility Act (2018) requires that the report must be laid in the House of Assembly then published in the public domain and debated within the month of January.
“The government does not have any discretion on this,” said Thompson.
“Once again, we demand that the Davis administration obey the law. We demand that the report be provided to Parliament immediately and that the debate on the report takes place as required.”
The Ministry of Finance said in a statement last week accompanying the release of the Fiscal Strategy Report and the Medium-Term Debt Management Strategy that the Davis administration believes “tying the formal presentation of these documents to a Parliamentary debate is unnecessary” and will move to make “the legislative change to discontinue this requirement”.
We in the FNM are comforted to know that the PLP has changed its tune and has acknowledged and committed to the continuance of so many sound FNM-led policies and strategies.
– Shadow Finance Minister Kwasi Thompson
Thompson asserted that the government’s fiscal strategy leaves more questions than answers and does not address a number of key issues.
“We are pleased to see the PLP (Progressive Liberal Party) government has recognized the value of continuing many of the FNM (Free National Movement) economic policy initiatives,” said Thompson.
“Despite the rhetoric from the PLP, they have kept the majority of the FNM fiscal policies and strategies from the previous 2020 Fiscal Strategy report, in some cases word for word.
“The FSR 2021 prepared by the Davis administration affirms the FNM policy on small business development, with the same exact funding commitment of $50 million per year.
“The FSR 2021 also affirms the FNM policy of promoting both domestic and foreign investment, as it was the FNM that committed to creating Invest Bahamas, now renamed Bahamas Invest.”
He added: “The FNM made tremendous progress in digitization, and this has also been affirmed in the FSR 2021.
“Tourism development, energy reform and expanding financial sector reform through one of the FNM’s signature legislation (Digital Assets and Registered Exchanges DARE Act) have all been affirmed in the FSR 2021 and will be relied on by the Davis administration as economic drivers.
“We in the FNM are comforted to know that the PLP has changed its tune and has acknowledged and committed to the continuance of so many sound FNM-led policies and strategies.”
According to Thompson, the FSR 2021 provides new projections that diverge materially from the previous FSR 2020 prepared under the FNM.
“Yet, critically, it does not provide the evidence to justify the change in these projections, some of which are very extreme,” he said.
“The FSR provides for [an] almost 60 percent increase in the amount of government revenue in four years. What is the basis for such projections, considering that you have decreased the amount of VAT (value-added tax) and have not mentioned any new taxes?
“How are we to rely on these numbers when the FSR 2021 states that they have not completed the studies or strategy that we were expecting to accompany and justify the projections?
“How does the government account for a decreased VAT rate yet it projects to collect more VAT? Stamp tax almost doubles and gaming taxes almost tripled? Will there be an increase to these taxes that is not being disclosed?”
