Categorized | National News

DNA: Country On Dangerous Fiscal Path

The Democratic National Alliance (DNA) lambasted the government over the country’s finances charging it was spot on with the projections of this administration’s “wasteful” spending during this 2016/2017 budget year. 

DNA Financial spokesman and candidate for Garden Hills Youri Kemp said the country is on a dangerous path to more pain and suffering for Bahamian taxpayers.

Mr. Kemp saying they had made note on the “extra” $250 million to $300 million that was under-represented in the budget communication by the minster for finance back in May.

“The deficit-trend and debt-watch to which we referred was highlighted in a Central Bank report in late December, with the data on the government budgetary operations for the first three months of FY2016/17 showed a $23.0 million (37 percent) worsening in the deficit, which made the total deficit at that time some $86 million,” he said.

Mr. Kemp said in February of this year, the same Central Bank reported that the deficit was now some 76 percent worse off at about $158 million, or $72 million extra worsening from last projected.

“Today, by the end of February, 2017 the Central Bank as reported in the local dailies is now reporting that the fiscal deficit is up to over $314 million and trending upwards,” he said.

“What we in the DNA also noted back in December, 2016 was that by the next budget communication our fiscal deficit may be upwards to $500 million and more if drastic changes are not made to the way this administration is wasting our money.”

Mr. Kemp added that citizens must be cautious that Moody’s did leave the window open for a downgrade sometime in the near future, which would certainly mean that it would be a junk bond rating.

Worst of all, he said, this most recent fiscal deficit alarm is not inclusive of debt incurred by the public corporations, which may make the overall debt even higher if public corporation debt becomes unsustainable and public corporation debt is forced onto the government’s ledger.

Written by Jones Bahamas

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