Even long time PLP supporter, Sir Franklyn Wilson suggested to Tribune Business yesterday, that we should not take the Minister of State for Finance seriously with his pronouncements about VAT spending.
He was making a feeble attempt to support the Jr. Minister as a result of a landslide of negative responses to his convention speech claiming the VAT money went toward projects that the Government borrowed money for or has budgeted for them for future spending.
So just what did The Central Bank of The Bahamas say?
Well here’s a couple excerpts.
“Data on the Government’s budgetary operations for the first four months of FY2016/17, showed an increase in the deficit by $67.7 million (75.3%) to $157.5 million, relative to the same period last year. This outcome reflected a $38.4 million (6.4%) contraction in revenue, and a $29.3 million (4.3%) increase in spending.”
"The falloff in revenue was led by a $30.1 million (5.7%) decline in tax receipts to $501.2 million, reflecting broad-based reductions in several revenue categories. Specifically, value added vax (VAT) collections fell by $15.4 million (6.7%) to $214.1 million, as revenues stabilised after a period of significant early payments in the prior fiscal year. In addition, taxes on international trade narrowed by $9.5 million (5.6%) to $162.5 million, led by declines in excise and import taxes by $6.7 million and $4.3 million, respectively; however, export taxes firmed by $1.4 million. Further, a timing-related falloff in gaming taxes, resulted in selective taxes on services contracting by $7.0 million to $3.2 million. Similarly, ‘other’ miscellaneous taxes narrowed by $4.2 million (3.6%) to $110.9 million, as a reduction in other ‘unclassified’ taxes by $8.5 million (41.6%), eclipsed the increases in departure and “other” financial stamp taxes by $1.8 million and $8.7 million, respectively. In a slight offset, business and professional fees advanced by $2.8 million (35.8%) to $10.6 million. Non-tax revenue decreased by $8.3 million (12.3%), owing mainly to a fall in income from “other sources” by $9.0 million (36.3%), overshadowing gains in fines, forfeits and administrative fees by $1.1 million (2.6%) to $41.7 million."
"In terms of expenditure, capital outlays rose by $24.0 million (43.2%) to $79.5 million, as increased spending on road development, along with outlays for costal protection, resulted in capital formation firming by $19.9 million (45.9%) to $63.3 million. In addition, the continued investments in ships for the Defence Force contributed to growth in asset acquisitions by $4.1 million (33.6%), to $16.2 million. Similarly, current spending firmed by $6.2 million (1.0%) to $638.3 million, due mainly to a $19.6 million (6.2%) gain in transfer payments to $333.8 million, amid growth in transfers to both public corporations by $18.9 million (79.3%)—largely for the maintenance of parks and beaches—and non-profit institutions by $5.5 million (22.7%). However, subsidies fell by $10.0 million (8.2%) to $111.7 million, as a $10.9 million (15.9%) increase in health-related outlays in preparation for the introduction of National Health Insurance (NHI), was overshadowed by a sharp reduction in tourism subsidies. In addition, consumption expenditure contracted by $13.4 million (4.2%) to $304.5 million, with the reduction in purchases of goods and services by $20.6 million (21.7%), outstripping the $7.3 million (3.3%) rise in personal emoluments."
Taxpayers in The Bahamas did not place the country in this predicament, Governments did and it’s time The Bahamas government got a handle on fiscal matters. It’s no longer a joking matter.
