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PM GIVES UPBEAT ASSESSMENT OF THE ECONOMY

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COMMONWEALTH OF THE BAHAMAS 2014/2015 MID-YEAR BUDGET STATEMENT ON THE SIX MONTHS ENDING 31st DECEMBER 2014

Presented to The Honourable House of Assembly by The Rt. Hon. Perry G. Christie, M.P. Minister of Finance On Wednesday, 11th February, 2015

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Introduction

Mr. Speaker: I stand before you today with enormous confidence in our nation’s economic future! Things are looking good! We are on the move! Here in New Providence, over there on Paradise Island, up in Grand Bahama, and all across our archipelago, from Mayaguana in the south to Bimini in the north, the engines of the national economic machine are being primed to propel us forward to a new era of economic prosperity.

I am absolutely and unshakably convinced of that! While other nations in the region are for the most part experiencing gloom and predicting doom we, here in The Bahamas, in this beloved land of ours, have weathered the storm. We made the tough decisions when we had to, tightened our belts when we had to, and took our medicine when we had to. And we have come through this time of testing just fine! The worst of it, I am convinced, is now behind us. The sunlight has broken through the clouds. Bright days lie before us now. We are standing tall, our heads held high, our hearts brimming over with faith in our country and optimism about our future

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. It is against that backdrop of high promise and great expectations, Mr. Speaker, that I have the honour to present to this Honourable House today, and to the Bahamian people, the third Mid-Year Budget Statement of my Administration, as mandated by the Financial Administration and Audit Act of the Commonwealth of The Bahamas. This statement and accompanying documents set forth provisional expenditure and revenue estimates for the six-month period ending December 31, 2014.

 As we approach the end of year 2 of our fiscal consolidation plan. I am pleased to report that my Government has met its initial commitments to reduce the deficit and increase revenue as a percentage of GDP. We have also succeeded in reining in the growth of public expenditure. My Government has, at the same time, made impressive strides in the implementation of our multi-faceted programme of revenue reform, spearheaded, of course, by the historic but remarkably smooth introduction of the Value Added Tax – or VAT – on January 1st of this year. I wonder what the naysayers in the land, and especially in the party opposite, are going to say now! Who among them will now have the courage to admit that their prophecies were wrong. Who among them, I ask? But then we well remember, do we not, how it was the same party opposite that predicted ruin for the country when National Insurance was introduced by a Progressive Liberal Party Government more than 40 years ago. They said we could not afford it and that it 3 would bring our nation to its knees. They were wrong then, of course, just as they’re wrong now. VAT is going to be a major success story for the people of The Bahamas. Believe me when I say that. I am absolutely convinced of it!

 

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