Govt. to Borrow Nearly $700M

NASSAU, BAHAMAS – Prime Minister Philip Davis delivering his first budget communication since taking office last September. Detailing the country’s fiscal standing and mapping out the government’s projections for the fiscal year 2022/2023.

The prime minister also revealing the government is seeking parliamentary approval to borrow nearly $700 million.

Jasmin Brown has the breakdown.

The prime minister spoke for more than two hours Wednesday morning, on a budget he says maps ‘The Way Forward’ for the country’s economic recovery.

The prime minister read two borrowing resolutions in the House of Assembly. The borrowing resolutions total $690.7 million.

Davis says the borrowing is necessary to cover the projected deficit for the upcoming fiscal year and to meet with the cash shortfalls during the execution of the annual 2021/2022 budget.

As it relates to the upcoming fiscal year, the PM says the current budget projects a significant rebound in the Bahamian economy.

As it relates to revenue, PM Davis explains, “Total revenue is projected at $2,804.4 billion, a 19.9 percent increase over the prior fiscal year when the economy was in the early stages of an economic rebound from the COVID- 19 pandemic.”

When it comes to expenditure Davis says, “Total expenditure is forecast at $3,368.4 million, with recurrent expenditure projected at $2,997.2 million, and capital expenditure estimated at $371.1 million.”

As a result, Davis says the fiscal deficit under the current budget is estimated at $564.3 million or 4.3 percent of GDP.