NASSAU, BAHAMAS — Prime Minister Dr Hubert Minnis yesterday said the government has deferred the release of the Fiscal Strategy Report (FSR) to December to ensure it has the most up-to-date information to inform key policy decisions.
While speaking on the matter in Parliament, Minnis noted that as mandated by the Fiscal Responsibility Act, 2018, the government is obliged to present the FSR to Parliament by the third Wednesday in November. The report outlines the macroeconomic and fiscal outlook which will guide the framework for the next budget.
“Given the fluid nature of the ongoing COVID-19 pandemic and its economic impact, my Cabinet and I have agreed that the prudent thing to do is to defer final deliberations and release the FSR in December,” said Minnis.
He added, “The sharp and ongoing revisions to macroeconomic forecasts produced by various international agencies including the International Monetary Fund (IMF) confirm the difficulties in developing a firm economic forecast.”
Minnis noted that while the reopening of the tourism sector is expected to have some positive impact on the economy, the government is seeking to make use of the most current information to the greatest extent possible to inform critical policy deliberations.
“The government is committed to [the] highest standards of fiscal transparency and accountability and is taking extra diligence in crafting our strategies for revenue and expenditure. Even amidst these unusually volatile times, we will seek to ensure our forecasts are aligned as closely as possible to our overall fiscal sustainability goals,” said Minnis.