NASSAU, BAHAMAS — East Grand Bahama MP and Opposition Shadow Finance Minister Kwasi Thompson says that the increase in government revenue has not translated into a better life for Bahamians, adding that the revenue increase comes as no surprise.
Thompson said: “It is to be expected and no surprise that the country’s revenue has had a significant increase. The economy was recovering under the last FNM administration and we saw a significant increase in revenues prior to the change in Government.
The increase in revenue is to be expected as the year prior we were in the middle of COVID and still recovering from Hurricane Dorian. Our economy is now open, and our tourism performance has significantly improved.”
Still, Thompson noted that the Opposition is extremely concerned that the increase in revenue has not translated to improved circumstances for Bahamians.
“Bahamians continue to struggle with high prices, high inflation, high energy costs, high food prices, and a high crime rate. Life is not better for most Bahamians. While we see an increase in taxes collected from Bahamians we do not see a corresponding increase in assistance and relief in particular for islands still recovering like Grand Bahama and Abaco.”
The Government exceeded its revised revenue target for the fiscal year 2021/2022 by nearly $270 million, with revenue collections during the period totaling just over $2.6 billion, according to the Ministry of Finance. The Ministry of Finance in its 12 months fiscal snapshot for the fiscal year 2021/2022 noted that despite contractions in global growth, The Bahamian economy maintained a steady pace of recovery, supported by rebounding tourist arrivals.
According to the Ministry of Finance, revenue collections during the fiscal year 2021/2022 totaled $2,608.6 million, an increase of $700.7 million over the prior fiscal year and 111.5 percent of the revised budget target.
Thompson also blasted the government’s increased spend on travel and subsistence, which happened to exceed the budgeted amount by 11.1 percent.
“It was also very concerning that the Government spent $34.8 million less on Small Business assistance. Unfortunately, small businesses continue to struggle as they have not received significant help during the inflation crisis, and many continue to struggle to survive.
“The government should not take a victory lap as most Bahamians are still struggling to survive the inflation crisis,” said Thompson.
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