Kwasi Thompson refutes claim, pointing to current fiscal period
NASSAU, BAHAMAS — “Thank God for the September 16, 2021 election,” Prime Minister Philip Brave Davis said as he leveled accusations against the former administration that it failed to achieve its fiscal projections even once in its four and a half years of governance.
On a point of order, East Grand Bahama MP Kwasi Thompson refuted the claim, pointing to the revenue yield exceeding projections in the current fiscal period.
Davis said Thompson could only point to the current fiscal year — nine months of which were governed by his administration, though the opposition made the case that its fiscal policies led to the increased revenue.
“The choices made in government matter,” Davis said during the budget debate.
“Indeed, as we constructed this budget, you’re very much living with the consequences of decisions made by our predecessors.
“To provide a little context for where we find ourselves as a country, consider the following: in 2017, a shock, 60 percent increase in VAT to 12 percent slowing down our economy as we warned that it would do; lockdowns and extended nonsensical curfews during COVID hurt Bahamians businesses of all sizes.
“The ill-advised purchase of the Grand Lucayan cost Bahamian taxpayers more than $150 million.
“The failed response to Hurricane Dorian slowed recovery in Grand Bahama and Abaco. Opportunities to borrow at lower interest rates were missed making our debt more expensive. Poor spending decisions like $20 million on sidewalks didn’t invest in our future.
“And under the previous government, there were unprecedented levels of borrowing: about $2 billion a year without a single credit; airport, major road, hospital or housing development to show for it. Not one. Not one house.
Davis continued: “Their revenue projections never panned out, not once.”
In response, the East Grand MP said this was misleading.
Making the case that the Minnis administration’s policies led to a better fiscal position, Thompson said: “The revenue projections for this very same past year actually exceeded the revenue projections, so for the prime minister to say that we’ve never met a projection, this past year, the revenue projections have exceeded.”
Members of the opposition banged on the table in apparent applause.
Later in the afternoon, Thompson accused the government of being fiscally irresponsible, increasing the nation’s debt despite its improved fiscal position.
He said revenue projections under the current government are a fallacy, referencing Moody’s assessment that the government’s projections were “overly optimistic”.
In response to Thompson, Davis said: “The member speaks only about this year.”
“He doesn’t speak about the other years. So, thank God for September 16, 2021, so he can now stand and brag that the projections were not just met, but exceeded.”
Davis said he hoped for the opposition’s sake that it understands that the electorate is in “no mood for excuses or revisionist history”.
