By Gerrino J. Saunders

Journal Staff Writer 

The Government of The Bahamas is building new paths to success in fiscal matters.  Leading off debate on the mid-year budget on Wednesday, Prime Minister Hon. Philip Davis said, “the most important way to build new paths to security and success is to invest in our people – and you can expect to see us build on existing initiatives with new and innovative policies to do just that. We have shown that compassion and strategic investments in our people and our country can co-exist with fiscal responsibility.”

The Prime Minister is not backing down from his message of hope and a brighter future for Bahamians even in the face of days of relentless criticism by the Official Opposition and its supporters.

Since the mid-year budget communication last week, the Opposition has hammered the government over its travel budget and accused the Davis administration of reckless spending and misleading the public on the true state of the economy.

Mr. Davis, who is also Minister of Finance dismissed the criticisms explaining that while there is still much work to be done, the economy has been resilient, and the fiscal plan contains numerous initiatives that will help to empower Bahamians and bring relief to the masses.

Prime Minister Davis began his contribution by reminding the nation and the Opposition of the many projects and programs that are underway before sharing that the government is moving ever closer towards achieving a balanced budget. 

He said, “There’s so much more to do – even with thousands back to work, and unemployment the lowest it’s been since 2008, and the largest GDP last year in our nation’s history. The high cost of living and barriers to progress mean too many Bahamians aren’t thriving yet.”

Continuing, Mr. Davis said, “In September 2021, we met record-high budgetary deficits in the hundreds of millions – now we have delivered the lowest recorded deficits in years as we move closer to a balanced budget. We have knocked a billion dollars off our deficit – while at the same time providing more funding for local governments, launching a National Youth Guard, putting free Wi-Fi in our parks, expanding Urban Renewal outreach, and deploying new ambulances.”

The Prime Minister was also happy to announce that the school breakfast program is now in 91 schools across the country and is helping families make ends meet along with the reduction in value added tax on food items from 10 percent to 5 percent beginning April 1st.

He also noted that the budget invests significantly in fighting crime, and they are beginning to see positive results as shown in the Englerston community where the Clear Hold Build anti-crime initiative was launched and is now moving into the Carmichael and Nassau Village communities. 

Mr. Davis also took time to explain the reasons for the sharp rise in the recurrent budget expenditure of $192.3 million in the first half of the fiscal year with inflation causing an increased cost for some expenditures and the need to invest in security systems, essential services, maintenance, rental, compensating government workers and local water supplies.

The Prime Minister thought it important to address the Opposition’s assertions on the deficit they claimed to be $500 million.  Mr. Davis accused the Opposition of being misleading. 

He said, “They claimed a deficit figure of nearly $500 million, combining both the current deficit and arrears. However, this statement is misleading.

“Adding the deficit figure with the arrears figure is not an accurate representation. This is the case especially considering that the Government’s arrears reported in the mid-year Communication were total arrears as of December 31st 2024, and would largely be settled within this fiscal period,” said Mr. Davis.

The Prime Minister said since his administration took office, the Government has not exceeded its budget.  “The suggestion we will do so this fiscal year is without evidence.  We fully intend to meet our deficit target for this fiscal year,” he said.

Following the Prime Minister’s address FNM shadow Minister for Finance Kwasi Thompson asked the Prime Minister to explain the budget deficit numbers for 2023-2024, but got no response from the government side. 

During his contribution the Prime Minister also addressed what some critics have described as the government’s exorbitant travel budget that has been a bone of contention since the numbers were revealed last week.

He said, “There has been considerable discussion about the costs of travel. Let me be clear: the benefits gained by travel have far, far exceeded the costs. The successful promotion of our country, the strategic partnerships and investments, the advocacy and coalition-building – these have already justified the costs of travel, many times over, not to mention the benefits which will continue to accrue.” 

He listed record-breaking visitor numbers, new airlift, the removal of our country from the blacklist, record investments in the pipeline – including $1.5 billion in Grand Bahama, and the $200 million agreement recently forged with Afreximbank for infrastructure which the government believes will be an important catalyst for economic growth and jobs.

Mr. Davis said playing a bigger role on the world stage has meant The Bahamas is hosting more important events and leaders.  In addition to raising the nation’s profile and reputation, there are other direct economic benefits.

He also thought it was important for Bahamians to know that many of those who travel are young Bahamian experts, serving the country and gaining invaluable experience as future leaders and policymakers something he says is “surely indispensable” to the country. 

Speaking to the Opposition Mr. Davis said, “I encourage the members opposite to consider that their attacks on this issue may reflect how they view their political standing, rather than any thoughtful consideration of the matter. 

“They spent millions on travel, you know.  They may want to reflect on their administration’s failure to bring in any significant investment during their term and possibly connect some dots.  Consider it a learning opportunity because this is actually quite serious.

“Many of the policies which will be imperative to our country in the years to come – from concessionary financing to crime-fighting to border protection to climate adaptation – and on and on – all will require international cooperation.  It’s an easy issue to demagogue – but it reflects poorly on their maturity in serious times,” Prime Minister Davis said.