Thompson: Pre-election report lends transparency to new administration
NASSAU, BAHAMAS — An incoming administration will not meet millions in unpaid and undisclosed arrears like the Minnis administration did in 2017, State Minister for Finance Kwasi Thompson said yesterday.
Commenting on the Pre-Election Economic & Fiscal Update, Thompson said that despite Hurricane Dorian and the COVID-19 pandemic, the Minnis administration has now paid off some $700 million of the last administration’s undeclared bills and commitments.
He asserted that the Minnis administration has totally modernized and transformed the framework for fiscal management, with the pre-election report putting the country in a better position to understand its fiscal position going into an election season and immediately thereafter.
“This is not about party politics but simply good governance,” said Thompson.
“The latest publication, the Pre-Election Economic & Fiscal Update, summarizes the performance of the last fiscal year, where government revenues were $110 million (or 10 percent) higher than budgeted due to a rebounding economy in the second half of the fiscal year.
“The provisional budget deficit of $1.348 billion budgeted deficit target of $1.327 billion that was approved by Parliament — missing the projected target by just 1.2 percent. This performance was achieved despite the substantially increased spending allocations to extend the unemployment and food assistance programs, and to secure funding for the expansion to the Princess Margaret Hospital.”
He added: “Also importantly, unlike in 2017 where an incoming government had to face over $400 million in immediate unmet payables and another $360 million in unreported arrears, the government elected by the people of The Bahamas on September 16 will have a transparent report on the arrears and payables of the government.
“The report shows that whoever is elected will not, like before, have to face the prospect of some $800 million in unknown liabilities.
“We are proud of the management of the fiscal affairs during the worst natural disaster and the worst pandemic we have ever seen — at the same time providing the most social, economic and employment relief in any government’s one term.”
Thompson noted that the government has $64.3 million left on the undisclosed arrears it inherited from the previous administration, down from the $362 million first reported in 2018.
“In spite of Dorian and COVID, we have now paid off $700 million of the last administration’s undeclared bills and commitments,” Thompson said.
“Further, outstanding payables total some $109 million — the equivalent to just under a half-month’s total expenditure based on average total monthly spending from last fiscal year. These open invoices are being addressed within the normal cash flow of the treasury, which since January has been bolstered by monthly revenue coming in ahead of budgetary projections.”
