Sumner: Devil in the Details with Budget

NASSAU, BAHAMAS – Former Bahamas Chamber Of Commerce And Employers Confederation CEO Edison Sumner says the budget presented on Wednesday is progressive, but the devil is in the details as it relates to government’s spending.

Jared Higgs tells us more.

Sumner says items in the budget supporting homeownership, such as a value-added tax (VAT) refund of up to $40,000 for any VAT paid for construction services or materials purchased, are progressive, however, he’s interested in how government will pay all the bills.

Sumner says debt isn’t in and of itself a bad thing, but the question is, does the government have the capacity to service the debt properly?

The country’s debt service ratio, while slightly improved, still hovers around 100 percent which is too high he says.

Revenue is projected at approximately $2.8 billion, which represents a jump in 19.9 percent compared to the previous fiscal year. Sumner says how those funds are collected is key, noting government’s revenue enhancing plans.

On top of being interested in seeing what recommendations are made for the country’s minimum wage, Sumner says he’s keen on plans announced for the Family Islands.