A Look Back At The Biggest Budget Announcements Since 2022

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NASSAU, BAHAMAS – Over the years, the Davis-led government revealed increased taxes, big dollar borrowing resolutions, and initiatives to ease the rising cost of living for residents and in his first Budget Communication in May 2022, Prime Minister Philip Davis sought parliamentary approval to borrow nearly $700 million.

The borrowing resolutions total $369.7 million and Davis says the borrowing is necessary to cover the projected deficit for the upcoming fiscal year and to meet with the cash shortfalls with the execution of the annual budget.

At the time, Davis said the budget projected a significant rebound in the Bahamian economy and Davis projected a 19.9% increase in revenue for that year.

This communication was significant for the new day government as it came on the heels of the COVID-19 pandemic which crippled economies and The Bahamas was not exempted.

The 2022 communication also brought new initiatives like the rise in the minimum wage.

Philip Davis – Prime Minister

“We also believe that the rate of minimum wage needs to increase because of the general erosion of spending power of ordinary Bahamians.”

Fast forward to May 31st, 2023 and the prime minister again sought parliamentary approval to borrow.

This time a significantly less sum of $45.2 million.

Philip Davis – Prime Minister

“Proceeds of said borrowing being used for the purposes of deferring expenditure in the 2023/2024 estimates of revenue and expenditure.”

Still, parliamentarians heard that revenue was up due to a significant increase in tax collections.

He also stressed no new taxes but committed to clamping down on revenue collection with tax collections and in the most recent budget communication, Davis shared news of increased revenue, the elimination of import duties, and a $70 million shortfall that had to be covered by a loan of $70 million.

Philip Davis – Prime Minister

“Here’s a look at how that $70 million dollars will be spent. $33million to verify the current fiscal year and another $37million for the upcoming fiscal year. Also set aside in the new budget $344 million in capital development.”

The communication dubbed changing the status quo saw a wide range in duty exemptions for fisherman.

Additional items were also added to the exemption list and with their fourth communication just days away, all eyes will be on the prime minister to see how this new budget will roll out and its impact.