The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Opposition’s leader yesterday argued that the latest International Monetary Fund’s (IMF) report fails to capture “the social pain being inflicted” by the Government’s austerity measures.

Philip Davis said the Fund’s assessment “does not accurately reflect” what is happening in The Bahamas, adding that the economy’s success has “absolutely nothing to do” with the Minnis administration’s fiscal measures and economic policy actions.

“The IMF report does not accurately reflect what is actually happening in this country and the social pain being inflicted. Their focus is purely on the national balance sheet, the fiscal deficit and not the social deficit which continues to widen,” Mr Davis said:

“The success of this economy has absolutely nothing to do with anything the FNM did. It boils down to two things; no hurricanes and the positive impact of Baha Mar to our economy.”

The IMF on Monday produced an upbeat assessment of The Bahamas’ economic and fiscal reform progress despite the “many challenges ahead”. The statement, following its December 3-7 visit, gave the Government credit for delivering on its promises - especially in the fiscal arena.

Besides underpinning its fiscal consolidation efforts with the Fiscal Responsibility Act, which promises enhanced scrutiny and oversight of the Government’s financial affairs, the IMF also acknowledged the deficit’s reduction from $660.4m in 2016-2017 to $414.9m last year.

But Mr Davis said it was “extraordinary” that, despite the Minnis administration priding itself on fiscal discipline, empirical data suggested The Bahamas’ finances are being “poorly managed or mismanaged”.

He pointed to the a recent admission by financial secretary, Marlon Johnson, that the 2017-2018 fiscal deficit overshot the deputy prime minister’s year-end forecast by $105m due to a late spending “ramp up”.

Mr Davis yesterday charged that the Minnis administration had done nothing but take credit for work done by the former Christie administration.

“It is highly ironic that, while in opposition, the FNM vehemently opposed the Baha Mar project and the proposal by the PLP to impose a hurricane levy to avoid fiscal disruptions from unforeseen natural disasters,” he said.

“The FNM has now gone to Parliament to take funds from dormant bank accounts and to borrow an additional sum from the IDB to defray the cost of post-hurricane repairs. All of their howling, the hypocrisy and flip flopping is consistently being exposed by their conduct.”

The IMF has praised the Government’s decision to establish a national disaster relief fund, something it has recommended in recent Article IV reports on The Bahamas, with suggestions that this nation build reserves to a level equal to between two to four percent of gross domestic product (GDP).