NASSAU, BAHAMAS — Opposition Finance spokesman and East Grand Bahama MP Kwasi Thompson criticized the 2024/2025 budget, asserting that while it does indeed change the status quo, it does so in the wrong direction, challenging the Davis administration to cease its tendency for secrecy and “come clean” with the Bahamian people.
During his budget debate contribution, Thompson stated: “This administration persistently disregards its publicly stated fiscal goals and targets, making a mockery of the country’s fiscal laws. The Public Financial Management Act (PFMA) mandates that the Government must justify any deviations from the general fiscal principles and objectives outlined in the previous fiscal strategy report.”
“The Government explicitly stated in its 2022 Fiscal Strategy Report that the Budget 2024/2025 should yield a $287 million surplus. Yet, without adequate justification or explanation, they presented a budget with a $69 million deficit. The PLP administration, through the PFMA 2023, is legally obligated to provide such justification, but instead, they habitually flout the law, undermining its integrity. This budget undeniably alters the status quo, albeit in the wrong direction. The government’s tendency for secrecy is detrimental to the Bahamian people, especially concerning significant fiscal changes like this.”
Thompson added: “The Government persists in withholding information regarding the deficit, casting doubt on its ability to achieve the current budget deficit target of $131 million. This lack of transparency not only does a disservice to the Bahamian people but also undermines the government’s credibility. By delaying the publication of fiscal information, they are reducing transparency.”
He argued that the Davis administration has abandoned its budget surplus target, with total revenue and VAT collections falling short. Additionally, explanations regarding the utilization of the $500 million IDB-backed loan do not add up.
“The Government altered projections in the midterm budget without explanation, lowering economic growth expectations from 5.5 percent to 1.1 percent. This significant drop reflects a fundamental problem – the disconnect between government promises and the reality faced by Bahamians. The FNM believes that The Bahamas can achieve sustained three-plus percent economic growth, essential for accommodating graduates and improving living standards. Until substantial growth is realized, the country will continue to face challenges.”
Thompson highlighted the pressing issue of debt, noting the government’s struggle to manage payments and secure loans compared to other countries in the region.
