The Tribune

EDITOR, The Tribune.

I read with frustration the awkward responses of the state minister for finance Michael Halkitis when asked to account for his “where the VAT money gone” speech at the Progressive Liberal Party’s recent convention.

Even though Mr Halkitis tried to make the point that VAT is deposited into the consolidated fund and is used (along with other government revenue) to help pay for goods and services that the government requires and to help fund various projects, at the end of the interview it was obvious that he was playing politics when he listed in that fiery speech how the VAT money had been used.

I suppose no one should be surprised that a politician wouldn’t miss an opportunity to play up to a crowd of supporters at a party’s convention. This is not new or particular to the PLP.

What I do find surprising though is that on an issue as sensitive as the country’s finances, especially VAT, Mr Halkitis didn’t see the folly of playing politics on such a serious matter. What an insult to the Bahamian public.

What hasn’t helped Mr Halkitis’s case is the fact that the government declared that the proceeds of VAT would be used to pay down the national debt and reduce the fiscal deficit. That has clearly not been the case – just take a look at the most recent Central Bank report.

If it’s the case that all tax revenue must go into the consolidated fund and it’s hard to determine exactly how VAT revenue is being spent, why would the PLP make such an explicit promise to the public? Framing it in that way suggests that it is possible to track its use. Doesn’t this just sow unnecessary confusion?

It also doesn’t help that, despite the “success” of VAT, the nation has been downgraded to “junk” status by Standard and Poor’s because of its fiscal condition, and that in turn has sparked serious fears about the stability of our currency.

Instead of playing semantics, the government must do a better job of accounting for how all revenue, not only VAT, is being spent, and explain why, after a very successful VAT implementation and collecting more than $1 billion (more than expected), the state of the country’s finances remains a critical concern.

Perhaps the VAT report promised by Prime Minister Perry Christie this week will shed some much-needed light on the matter. We will see.

It is also not helpful when the only response that the opposition has is to criticise, rather than explain how they would be more accountable.

In the absence of transparency, the public (and media) will be left to draw their own conclusions – accurately or otherwise. And based on recent events, and what is readily available for public consumption, is it any wonder that the government’s fiscal responsibility is being questioned.

Every Bahamian has felt the impact of this sluggish economy (some more acutely than others), and every Bahamian deserves and has the right to know how their tax dollars are being spent. It has nothing to do with party politics. It’s called accountability.

EWC

Nassau,

February 3, 2017