National

Davis Administration To Borrow $70 Million To Bridge Fiscal Gap

NASSAU, BAHAMAS – Prime Minister Philip Davis’ budget contribution today attempted to tell two stories: increased revenue and debt reduction in the current fiscal period.

Published

6 months ago

May 29, 2024

Berthony McDermott

NASSAU, BAHAMAS – Prime Minister Philip Davis’ budget contribution today attempted to tell two stories: increased revenue and debt reduction in the current fiscal period, while foreshadowing major capital works, many more duty concessions, and a $70 million shortfall which has to be covered by a loan.

Here’s a look at how that $70 million will be spent: $33 million to cover the current fiscal year, and another $37 million for the upcoming budget year.

Also set aside in the new budget is $344 million in capital development and $125 million in a guaranteed loan for Exuma and North Eleuthera airport improvements.

The Prime Minister also boasted a deficit cut of $1 billion in three years.

Fishermen will be able to import an extensive list of equipment with new duty concessions, ranging from push poles to ultraviolet lamps. A few of the items added to this year’s duty-free list include fire extinguishers, drones, laundry detergents in the form of paper sheets, medicinal sea moss, and digital camera parts.

There was also positive and promising news today about revenue performance.

Yet, government expenditure is up by $76.9 million, accounting for increased employee compensation as well as interest payments on public debt. However, there were some important spending reductions.