The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE DEPUTY Prime Minister yesterday stressed that the Government must continue with its economic growth and fiscal initiatives, conceding: “There is still a lot of work to be done.”

Speaking with reporters ahead of a Cabinet meeting, K P Turnquest acknowledged that the Minnis administration was “encouraged” by the recent International Monetary Fund (IMF) report.

“As you know the IMF does an annual audit before a report, which is a more in-depth study of our economic environment and the policies of the Government, and they give you an assessment of where they think we are,” he said.

“This is a staff report in preparation of that more in-depth report that will come early next year. But we’re certainly encouraged by the early indications. It confirms that we are on the right track as a country with respect to the policies that we’ve initiated thus far.”

Mr Turnquest added: “We are particularly happy that they have endorsed our fiscal responsibility legislation, and what that will allow us to do in terms of making the whole process - budgeting and fiscal management of the country - more inclusive through the fiscal council that we established, and more transparent so that all Bahamians who are interested can have access to data that can have a direct input into how we shape the future of our country from a fiscal point of view.”

The IMF on Monday gave an upbeat assessment of The Bahamas’ economic and fiscal reform progress despite the “many challenges ahead”. Its latest 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.

“We recognise that there is still a lot of work to be done. There’s a lot of education that needs to be done because, unfortunately, sometimes we’re not very good at communicating where we are and why we’re doing what we’re doing and taking the steps that we’re taking, so that’s something that we have to work on so that we bring everybody along with us as we try to turn around our fiscal situation,” said Mr Turnquest.s1

“As we look around the world and what’s happening, and see all the upheaval that’s happening, it’s says to us that we have to get our fiscal house in order and take the opportunity while we have some buffers to do that, so that when hard times come and if there is another recession - which some people predict - that we are prepared.

“That we can withstand it, that we have in place the fiscal structures and the discipline built into our system so that we can withstand and have some headroom, at least in terms of borrowing, or we have to do other extra fiscal measures to weather anything that may come in the future,” the Deputy Prime Minister added.

“So more than anything the report says to us you’re on the right track. We need to continue with the discipline measures that we have in place, and continue to get our expenditures in line and continue the growth initiatives that we put forth and, again, just being very communicative and transparent with the Bahamian people and ensuring that we again do the best we can to maintain and to meet our commitments in respect to the Fiscal Responsibility Act.”