Prime Minister Dr. Hubert Minnis said the government will once again address the imbalance between spending and revenue by giving “immediate and urgent priority” to a fundamental and durable restructuring of public finances Tuesday.
This, he said, will strengthen and secure the country’s international standing and the future prosperity of the nation.
“Doing so is critical to securing the Government’s ability to implement its reform, modernization, and growth agenda in a responsible and fiscally sustainable way during the course of our five-year mandate,” Dr. Minnis asserted in his wrap of the mid-year budget communication.
“My Government believes that such legislation can usefully serve to constrain the ability of governments to engage in excessive spending above and beyond the levels approved by Parliament, and also serve as a legal check on the ability of a government to run-up unwarranted annual deficits above and beyond budgetary projections.”
According to Dr. Minnis, the government will strive to finalize the Fiscal Responsibility Legislation for tabling in Parliament during the next budget communication. He said such endeavours will also redress the imbalance.
“I would only wish to emphasize at this time, my Government’s firm resolve to implement such a law as a practical constraint on governments, that will facilitate and secure, the move towards the elimination of the GFS deficit, and the return of the burden of government debt to lower, more sustainable and appropriate levels,” he said.
“I believe that a law of this type, will serve to improve the Government’s budgeting process by instilling a greater sense of realism and urgency into the exercise.”
Dr. Minnis also said the level of government spending on programmes and services “that is out of line with the revenues that are available” was at the crux of the country’s current fiscal problem.
“This gives rise to the unsustainable fiscal position that we inherited,” he said. “Its resolution requires determined action in the near term and going forward to bring spending and revenues back into balance.”