NASSAU, BAHAMAS — While describing the 2022/2023 budget as “generally progressive”, a former Bahamas Chamber of Commerce and Employers Confederation (BCCEC) CEO noted that “the devil is in the details” as to how the government will fund its projected $3.3 billion in total expenditure.
“I thought that the budget as presented by the Prime Minister was progressive in many ways,” said Edison Sumner, principal of Sumner Strategic Partners.
“There were some good things in the budget. Generally I think it was a good budget and a progressive one. The devil is in the details as to how they are for instance going to fund that $3.3 billion in expenditure. I think that will raise some eyebrows. We will have to see how they handle that and close the gap on the deficit but on the merits of what was presented it was a progressive budget.”
Total revenue is projected at $2,804.4 billion, a 19.9 percent increase over the prior fiscal year while total expenditure is forecast at $3,368.4 million, with recurrent expenditure projected at $2,997.2 million, and capital expenditure estimated at $371.1 million.
Sumner said: “I think the budget hit the nail on the head in terms of support for the most vulnerable members of society and in terms of what is being offered for first-time homeowners for example.”
During his communication to Parliament on the 2022/2023 budget, Prime Minister Philip Davis said: “For Bahamians who dream of homeownership, this dream can soon become a reality. Currently, concessions are available for persons who purchase a home for the first time. We are expanding these concessions so that people who purchase a home, or purchase land and construct their first home, or purchase a house and renovate it to be their first home, will receive the same level of concession.”
“For those who are constructing or renovating their first home, we also are refunding up to $40,000 in cash for any VAT paid for construction services or materials purchased, once the occupancy certificate is provided within eighteen months of the commencement of construction.
Davis added: “We are also increasing the level of exemption for first home buyers from $250,000 to $300,000 and reducing VAT on property transfers below $1 million for individuals.”
Sumner also lauded the government’s efforts toward the establishment of a Family Island Development Trust Fund.
Davis said the government has allocated 10 percent of overall revenue collected in the Family Islands from property tax and road traffic fees, to the creation of a Family Island Development Trust Fund in the amount of $200 million.
“This fund will facilitate the Government in making immediate and significant investment in Family Island infrastructure. This fund would be a sub-fund of the National Infrastructure Fund,” said Davis.
Sumner said: “As an advocate for family island development, I think that is a good move. I think this could help to ensure that the infrastructure in the family islands are developed and maintained, which has long been an issue.”
“The Prime Minister also spoke about salary adjustments in the public sector and providing retention bonuses for nurses for example. We will have to see what those bonuses look like but on the face of it it’s a good gesture,” said Sumner.
He also noted that while the Prime Minister indicated that his government’s agenda was being “funded without any general increase in taxes or rates”, there were a number of increases and adjustments to existing taxes.
