bahamas government budget 2020

“On the financial account, foreign direct investment (FDI) inflows are expected to halve. The largest component is the $180m allocated to the tax credit and deferral initiative targeted at supporting payroll expenses for medium-sized and large firms. Governor General Dame Marguerite Pindling Government House Government Hill P.O. Where did the US get 16 trillion dollars to hand to banks and corporations? However, this is still $130m short of the six-year average estimated by the IMF, which suggests that achieving a 50 percent debt-to-GDP ratio within a decade will be virtually impossible - especially for a country that faces an annual risk of being struck by major hurricanes - without fundamental fiscal reforms. We are looking at the multilateral entities, the IDB and Caribbean Development Bank (CDB) facilities as well, to see how much we will make use of the facilities they have because we’re trying to get the best rates possible on borrowing and extended terms.”. The IMF report added that the Government’s fiscal stimulus measures to protect the health system, private sector, jobs and most vulnerable in society, were worth $437m - equivalent to 3.7 percent of Bahamian GDP - and spread over the current and upcoming fiscal years. Marlon Johnson, the Ministry of Finance’s acting financial secretary, confirmed to Tribune Business yesterday that the World Bank guarantees, which would ensure private sector lenders to The Bahamas are repaid, was among the $1.327bn deficit financing options being explored. Although lower international oil prices and reduced imports will help the trade balance, these effects are more than offset by the sudden stop in tourist arrivals. A good portion of government's latest proposed borrowing of US$1.3 billion will be used by our dumb corrupt politicians to exchange their own Bahamian dollars for US dollars at about a par exchange rate before government announces a major devaluation of the Bahamian dollar. The result is an external financing need of about US$1bn. This issues is much, much more than James Smith - as I am sure you know. “The COVID-19 crisis will delay reaching these targets further, but the authorities are steadfast to bring the fiscal deficit to 0.5 percent of GDP by 2026-2027 and the debt ratio to 50 percent of GDP by 2030-2031. Unfortunately the Bahamas will have turned from a fiscal paradise to a fiscal hell in only one decade. James Smith as past governor of the CB and past minister of state for finance was the worst of the lot of them. And, it is about time that we implement a corporate tax. “This exceeds the approved budget target of $137 … Bahamas military spending/defense budget for was $0.00B , a NAN% decline from . Contents of this site are © Copyright 2021 Ellington. The VAT could have been 7.5% and then after 2 years raised to 15%. “The Bahamas faces a pronounced balance-of-payments shock,” the IMF said. Actually we had a much smaller budget deficit before VAT. By Ashley Penn-Nixon. The Minnis administration increased VAT from 7.5 percent to 12 percent last year, reasoning that the increase was necessary to lowering the country’s climbing debt. “The Government activated the escape clause of the Fiscal Responsibility Act after Hurricane Dorian hit the country. They will resume various measures when the pandemic fades, including the reviews of state-owned enterprise (SOE) governance, investment incentives, and the pension system, enhancements to public financial management (PFM) to increase expenditure control and efficiency, and revenue administration reforms.”. exchange their Bahamian dollars for US dollars at about a par exchange rate. Bahamians achieved self-government in 1964 and full independence within the Commonwealth of Nations on July 10, 1973, retaining Queen Elizabeth II as monarch. DPM: Opposition 'working hard' to attract downgrade, Debt ratio forecasts are 'overly optimistic', Working age 'plateau' to hit growth, credit rating, Govt urged to explore 'social' bonds to fund disaster relief, NEW OBITUARIES NOW UNDER ARCHIVES/TRIBUNE PDF EDITION. The IMF is the equivalent of the bank manager calling you into the head office and explaining that if you don't get your finances in order they are going to foreclose on the mortgage. With 16 major islands, The Bahamas is an unmatched destination, a heart-pounding adventure across 100,000 square miles of the world’s clearest ocean. Mark my words. If you start asking these questions, you end up down the rabbit hole. Of course you and others like you, e.g. Box N8301 Nassau, N.P. And this is just the beginning. The Parliament as presently constituted was established by Chapter 5 of the Constitution of The Bahamas, which came into effect upon the country's independence from the United Kingdom . The economic stability of the country was pushed to the forefront following the 2020/2021 budget communication as the Deputy Prime Minister and Minister of Finance K. Peter Turnquest outlined the way forward following the COVID-19 shortfall. As such, total revenue for the budget year 2020/2021 is anticipated to be $1.7 billion which is down 15.7% compared to the previous fiscal year. Urging the government to immediately shift “to rebuilding buffers and strengthening resilience” once the COVID-19 crisis has passed, the IMF said: “Decisive and significant fiscal measures are needed to bring public debt on a clear downward path and achieve the fiscal targets under the Fiscal Responsibility Act. All countries could print their own money, as does the US. Last revision date: February 25, 2020 Last revision date: February 28, 2020 It is not good for hair-brained politicians that think they are smarter than they really are.... but in the long run it is good for the country. However, the real problem in this Bahamas is the LACK of information. Increased VAT was inevitable - nothing we can do about that. The Government chose to shift from a strategy of fiscal consolidation to invest in “Resilient Bahamas: A Plan for Restoration" at a significant but necessary financial cost. Budget Speech 2021 ; Antigua and Barbuda Budget 2020. Gross international reserves have been boosted by hurricane insurance payouts of about 8 percent of GDP in 2019 and 2020. It also reviews the activities of the Public Sector Entities and the Selected Projects performance. Deputy Prime Minister and Minister of Finance Peter Turnquest said given the revenue loss and expenditure increases the government expects to incur, the fiscal deficit for FY2019/20 is now expected to increase by approximately $677.5 million, to 5.3 per cent of the gross domestic product (GDP). “With the removal of domestic containment measures, post-hurricane reconstruction activity is expected to regain momentum. The government must run an unheard-of $500m fiscal surplus beginning in the 2024-2025 budget year to hit a key debt reduction target by the end of … By the way why does IMF have the money to borrow? The associated guaranteed commercial bank loans would have maturities exceeding five years. Some part of the borrowed money has been spent on infrastructure development, mostly during the tears that the FNM were in control. It is specious to think that as a country we can exist without one. A virus infecting 0.1% of population but all economy going to hell? Then the unions will demand more and the Government will say yes, leading us back to square one. My wish is that it does all come crashing down, as it well should. We are about to see a substantial increase in taxes. “A gradual recovery should take hold in 2021, assuming that the pandemic fades and global containment efforts can be gradually unwound. The report also noted that this nation faces “a pronounced balance of payments shock”, with foreign direct investment (FDI) inflows projected to fall by more than $290m or 50 percent year-over-year to $265m in 2020-2021. FY 2020 Congressional Budget Justification – Department of State, Foreign Operations, and Related Programs [2 MB] The authorities plan a long-term external bond issuance in fiscal year 2020-2021. “They are also seeking two guarantees from the World Bank’s Multilateral Investment Guarantee Agency (MIGA) for COVID-19 healthcare expenses and capital spending. Tourist arrivals are expected to recover strongly in 2021 but reaching pre-crisis levels will take time,” the IMF said. The IMF report estimated that its $252m loan, together with $180m and $50m provided by the IDB and CDB, respectively, and $88m obtained from foreign lenders under the World Bank guarantees would cover some $570m - or nearly 60 percent - of The Bahamas’ balance of payments financing needs. ... performance of Central Government’s Budget in the immediate past FY as well as the aims/objectives of the new Central Government Budget. Why would we expect otherwise from such ardent supporters of Minnis who serve as his trolling voice on websites like this one? There are two accounts, the recurrent and capital accounts. Bahamas Tel: (242) 322-1875 Fax: (242) 322-4659 No one likes Doom and Gloom, but reality is such now that the Financial Grim Reeper has spoken and it is now too late to turn back the hands of time and make amends for failing to properly manage this Country post Independence ... if only someone had listened and had the courage to make the tough decisions that successful Businessmen are required to make virtually every day, we could have held our heads high and marched on Bahamaland ... alas our Independence has come to an end in less than 50 years ... so, so sad .. and worse most Bahamians do not even appreciate what has happened, but regrettably they soon enough will. The IMF estimated that The Bahamas’ services exports, representing the key tourism industry, will decline by $2.78bn or 24.5 percent of GDP this year. Bumbling Bill Allen wasn't all that great either, so stop with the political nonsense. Owing to the island’s excessive reliance on tourism, the economy will struggle to recover completely in the 2021-22 forecast period. The lack of education and total lack of concern will catch up with us. The best kept secret of The Bahamas is the country’s sheer size and diversity. The government must run an unheard-of $500m fiscal surplus beginning in the 2024-2025 budget year to hit a key debt reduction target by the end of this decade, the International Monetary Fund (IMF) has revealed. “The authorities remain committed to fiscal consolidation over the medium term as specified under the Fiscal Responsibility Act,” the IMF said nevertheless. 10Y. In the meantime, we have some tough and unpleasant financial medicine to swallow. You cannot keep borrowing and borrowing and stealing and mismanaging and borrowing some more. It guarantees lenders will be repaid. “We haven’t finalised the specifics of how we will make use of that facility,” he added. Turnquest delivered a sobering projection for the 2020/2021 fiscal year in the House of Assembly Wednesday while revealing a number of firsts for The Bahamas, … As usual, it will be our children who pay the price. And the more incompetent the government is, the more borrowing that occurs. 20% VAT, doubling of NIB contributions, and 10% Corporate tax. No report on what actually happened. “It’s being explored to optimise the kind of rates we’re able to get out there in the marketplace. Now if they had just started that VAT at 15% like they originally intended they'd have a surplus, well probably not. “The current account balance is expected to deteriorate to a deficit of 17 percent in 2020, from a surplus of 0.7 percent in 2019. Okay, fine. Home / Budget Statement • Publication / Budget Statement 2020 Budget Statement 2020 By sfadmin October 7, 2019 Category: Budget Statement , Publication Tags: Budget Statement Endlessly borrowing as much as it can to fund an inefficient overpaid civil service and SOE's. It's just one nice sounding promise after another - year after year - with no follow-up. This represents a fall-off from $4.151bn to $1.371bn year-over-year, which will be partially compensated for by a $2.422bn or 21.3 percent contraction in total import volumes. Antigua and Barbuda Budget 2021. In the long-term, the Bahamas Government Budget is projected to trend around -5.50 percent of GDP in 2021 and -4.50 percent of GDP in 2022, according to our econometric models. Basically if you give a politician $1 he will spend $2, if you give him $2 he will spend $4 or more! Bahamas Government 2019/2020 Budget ContributionHon. Budget Speech 2020 ; 2020 Antigua Estimates - Recurrent & Development; 2020 Barbuda Estimates - Recurrent & Development ... Antigua and Barbuda Budget 2016. You are here: Home. It is not fun. This allows the authorities to postpone the achievement of their fiscal consolidation targets (a fiscal deficit of 0.5 percent of GDP by fiscal year 2020-2021 and a public debt-to-GDP ratio of 50 percent by fiscal year 2024-2025) by four years. All rights reserved. “Despite the recent S&P downgrade by one notch to ‘BB’, The Bahamas is expected to continue to have access to international bond markets albeit at significantly higher rates than before. For almost 50 years now the Bahamas has lived in a fiscal fool's paradise. June 29, 2020 By @BahamasFSB Budget, Government, Industry News, Latest 2020/2021 Budget Contribution – Ministry of Financial Services, Trade & Industry and Immigration @BahamasFSB 2020-06-29T11:42:59-04:00 A few reports here and there (of course) - like we were going to spend 20 million on police but ended up having to spend 25 million. Mid-Year Budget Performance 2020 - 2021; Combined First Six Months Fiscal Snapshot & Report on Budgetary Performance 2020 - 2021; Fiscal Strategy Report 2020 Seeing as we never have a Government willing to make the hard decisions by trimming their expenses, we know that after the election taxes will go up (regardless of who wins). All other Bahamians will be left with their seriously devalued Bahamian dollars and even more national debt to pay - US$1.3 billion more. It is all a Ponzi scheme. Inflation is expected to increase to 2.5 percent in 2021, along with the economic recovery, and converge towards 2 percent in the long run.”, Here it comes, folks. Balancing the books is growing up and displaying an independent maturity and responsibility that enables you to once again make your own rules and borrow again. The majority of Bahamians don't live in The Bahamas. Even fewer will be able to live here soon enough. Discussions are ongoing with the Inter-American Development Bank (IDB) for new credit facilities amounting to $320m in fiscal year 2020-2021 for policy loans and investment loans, with maturities exceeding 20 years.”. Bahamas military spending/defense budget for was $0.00B , a NAN% decline from . Like most Caribbean islands, the Bahamas has begun a phased reopening of its economy and tourism, but there have been accompanying spikes in infections. Mid-Year Budget Performance 2020 - 2021; Combined First Six Months Fiscal Snapshot & Report on Budgetary Performance 2020 - 2021; Fiscal Strategy Report 2020 “It is expected that financial support from the Fund and other international financial institutions (IFIs), notably the Inter-American Development Bank (IDB) and the Caribbean Development Bank (CDB), will be able to bridge about 60 percent of this financing gap, helping contain the still-significant drawdown of international reserves. LOL. Follow the money. The 8.95 percent interest coupon attached to The Bahamas’ $600m offering, which the government said was effectively oversubscribed by 83.3 percent based on the $1.1bn worth of … For the Treasury Department, personal emoluments have been allocated $45.15 million for 2019/2020, up $1.98 million from the $43.17 allocated for 2018/2019. “Staff calculations suggest that to achieve the Fiscal Responsibility Act debt target by 2030-2031, an average primary surplus of four percent would be needed starting in fiscal year 2024-2025, with significantly faster consolidation than in the current baseline already beginning in fiscal year 2022-2023. “The exact speed of this adjustment should be calibrated to the economic outlook, subject to scrutiny by the Fiscal Council and parliament approval.” The closest that the government has come to achieving the required four percent of GDP surplus came in the 2018-2019 fiscal year, when it managed to notch a positive $342.5m balance on the primary account. higher taxes was probably the purpose of covid19. Part 1 of 2Bahamas Government 2019/2020 Budget ContributionMichael Pintard, MP Marco CityThursday - June 13, 2019 - Afternoon Session. In a statement released on January 26, 2021, on its Article IV Consultation with The Bahamas, the IMF reported that real GDP was projected to contract by 16.2 percent in 2020, followed by a modest rebound of two percent in 2021, and to converge back to its pre-pandemic level only by 2024. Compass Correspondent. The fund, in a report accompanying its decision to approve a $250m loan to The Bahamas, revealed that the government will only achieve its goal of a 50 percent debt-to-GDP ratio by the 2030-2031 fiscal year if it achieves an annual budget surplus equivalent to four percent of economic output gross domestic product (GDP). These developments should lead to a rebound in real GDP growth of about 8 percent in 2021, but the recovery will be gradual with the economy reaching its pre-pandemic level only by end-2023. Prime Minister Minnis: More work to be done to ensure more women serve in the Cabinet Emergency Powers (Covid-19 Pandemic)(Risk Management)(No.4)(Amendment)(No.6) Order 2021. This page has economic forecasts for Bahamas including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the Bahamas economy. Our foolish politicians took the bait of an easy bailout loan whilst flushing our economy down the drain by locking down - and now the fine print is coming to light. The Bahamas Investor – Fall & Winter 2019/20 Press release Etienne Dupuch Jr Publications is pleased to announce the release of the Fall & Winter 2019 issue of The Bahamas Investor magazine. And, while backing the government’s policy response to the health and economic fall-out produced by the pandemic, the fund added that The Bahamas now faces “significantly higher” interest rates on its future borrowings as the Minnis administration moves to finance the projected $1.327bn fiscal deficit for the upcoming 2020-2021 budget year. NASSAU, BAHAMAS – No increase in Value Added Tax (VAT) is expected as government presents its 2019/2020 budget in Parliament today, Minister of Finance Peter Turnquest confirmed yesterday. All we get to see are Budgets. Some with money don't think they are. $1.8 Billion … Illuminati crap. The IMF also warned that The Bahamas faces a three-year wait for its economy to return to pre-COVID-19 output levels, estimating that this would not occur until “end-2023” - more than three-and-a-half years away and a full 12 months further out than projections previously given by John Rolle, the Central Bank’s governor. K. Peter Turnquest, MP, DPM, Minister of FinanceMay 29, 2019. President Donald Trump released a would-be record $4.829 trillion federal budget proposal for fiscal year (FY) 2021 on Feb. 5, 2020. Friday, January 31, 2020. Precisely! Again, we haven’t finalised the nature of the credit facilities. Antigua and Barbuda's Government Information and Services . Bahamas military spending/defense budget for was $0.00B, a NAN% decline from . The public never gets to the the Actual spending figures for the prior year stood in columns next to that last year's "budgeted" figures. We are all enslaved. Borrowing too much to pay off too many loans. These corrupt politicians will also help their family members and favoured cronies to do likewise, i.e. The Ministry of Education Scholarship and Educational Loan Division was established in its current form in 2003 to encourage and support Bahamian students in their pursuit of college, university, vocational and graduate school education through financial aid advising and the granting of scholarships. The result is an expected deficit of $1.3 billion which has been cited as being “the largest deficit to be incurred by any Government in the history of The Bahamas”. Money is created as debt.   The U.S. government estimates it will receive $3.863 trillion in revenue, creating a $966 billion deficit for Oct. 1, 2020, through Sept. 30, 2021. COVID-19 Emergency Orders and Powers, 2020; February 10, 2021 Scam Alert: Bahamas Customs Auction; February 1, 2021 Cruising Permit Module Launch 2021; January 27, 2021 Licensed Couriers/ Freight Forwarders 2021 © 2021 Bahamas Financial Services Board All Rights Reserved. Reserves are expected to decline to about $1.3bn in 2020 and to remain at similar levels thereafter.”. The debate has been put off for some time after the government completes debate on the 2020/2021 mid-year budget. Government Budget in Bahamas is expected to reach -6.50 percent of GDP by the end of 2020, according to Trading Economics global macro models and analysts expectations. 2019 - 2020 Budget. Hedge funds and Soros want to suck up your money. Congress is rocketing to pass a massive $2.3 trillion spending package by Dec. 21 at 11:59 p.m. that includes pandemic relief and federal spending, with $696 billion for the Pentagon. Thank Ministers of Finance in past administrations; you were all totally inept or worse. As a result, the IMF forecast that The Bahamas faces a $1.012bn balance of payments financing gap that will have to be filled with help from multilateral lending institutions. topdude, stillwaters, etc., support a much higher VAT. ... Bahamas - Economic Forecasts - 2020-2022 Outlook. Government House is the official residence of the Governor General of the Bahamas, located in Nassau.It was built in the colonial days and was the residence of the Governor of the Bahamas.It later continued in the role of official residence and office of the Governor General following political independence from the United Kingdom in 1973.. The Bahamas sits in the West Atlantic Ocean, 100 kilometres south-east of Florida in the United States and 80 kilometres north-east of Cuba. | Terms of Use / Legal Disclaimer, 2020/2021 Budget Contribution – Ministry of Financial Services, Trade & Industry and Immigration, Registrar General Department Notice Re: The Non-Profit Organizations Act, BAHAMAS REMOVED FROM FRENCH TAX BLACKLIST, BFSB PLATINUM SPONSOR OF 2021 WORLD CAPTIVE FORUM EVENT AND THE INSURANCE COMMISSION TO MAKE PRESENTATION, Bahamas Makes Significant Strides In Fight Against Financial Crime: Update On The Bahamas’ National Identified Risk Framework, Ministry of Finance: Notice on Compliance with Section 7 of the Commercial Entities (Substance Requirements) Act, 2018 (“CESRA”). When you're looking at a 6 to 8 billion dollar budget, and all of that money gets spent and people don't know where it goes - and have no way of finding out where it goes - then those who spend it don't have any worries. Referring to the Government’s deficit financing plans, the IMF added: “The increased fiscal needs will be financed by a combination of domestic and external debt issuance, as well as financial support from the Fund and other IFIs (international financial institutions). This would mean the government has to generate an average $472.65m primary surplus, the amount by which its revenue income must exceed all fixed cost spending bar interest payments, for a six-year period over the coming decade as the extent of the combined blow dealt by COVID-19 and Hurricane Dorian is fully revealed. You really can not believe this BS. Friday, January 31, 2020. VAT to 20% like in the UK, 35% Death duties, and possibly income tax. I say just kick that can down the road but being the Bahamas are islands they roads aren't all that long. Around 30 of the islands are inhabited. Why does IMF never borrow from someone else? Prime Minister Minnis: Retooled Bahamas Development Bank will better meet the needs of small businesses Press Room. Why do governments need to borrow money? The smart money long ago fled the country. The Bahamas is an archipelago of nearly 700 coral islands. But that is nothing. The government has budgeted $24.83 million for personal emoluments for the Bahamas Department of Correctional Services — an increase of $2.46 million. The rope has now run out and we have to start paying back all that overspending. Probably not. The remainder, or $442m of the total $1.012bn need, would come from the drawdown on existing foreign currency reserves. Does not matter, stop with the "this person was bad". “Yes, we are looking at the MIGA facility as a way to secure private financing on favourable terms.