EDITOR, The Tribune.
IT is rather funny but serious that today we hear regularly from the FNM that one of their highest priorities is to eliminate deficit budgets, but they do not explain what it will mean to us… wonder why?
In government the FNM has not been the best of the best in reducing deficits. I recall so well after the first term Algernon Allen, the leader of the House, exclaiming “thanks to deficits we are elected again!” The $165m!
The FNM can’t suggest that the electorate voted them in with the massive majority they hold on removing deficits because that is totally wrong - the FNM won because the voters wanted to get rid of the PLP and as Rt Hon Hubert Ingraham said at that crucial stage - “A vote for the DNA will return the PLP!” — his words caused the FNM election.
Removing deficit budgets was never in anyone’s thoughts.
If deficit budgets become something of the past we are going to be faced with an austere future as there is no way the private sector - FDI or local investment will make up the slack and taxes revenues to compensate.
PMH, etc, requires millions - Bahamasair Cabinet refused to increase logically loosing fares on routes by as little as $20.00 – roads need upgrading – just the stretch of Farrington Road to repave, $770,000.00!
BOP needs millions - BP&L needs $150m plus and still the rates will increase (they haven’t dropped that as yet, but folks it’s coming). NIB payments have to increase or the pension side will be insolvent and the list goes on. Government is owed millions, which they can’t collect.
As a consumer how much can you spare for more taxes? None if you are the majority.
This Over-the-hill development plan is totally fools-talk - firstly the residential centre of Nassau is now Carmichael to Seabreeze - the retail centres followed and Mr Prime Minister they ain’t moving back! Don’t get swung with the figures they throw out they will spend over five-years, the bigness of them impresses you. Did an Economist complete a study to show this proposal possible –feasible and might work? Politics!
Surely we have not put all our fragile eggs in Oban?
The Bahamian economy can’t work without deficits - spending, yes, has to be within budgeted limits - no overruns but remember that whopping $100m New Providence Road overrun - who did that?
We can follow Margaret Thatcher’s approach, but you know that will bring layoffs of hundreds who have government jobs and do little any day in the working week, but this is the solution.
Mr Finance Minister it is time you explained the pain that will come with a balanced budget and no deficits.
ABRAHAM MOSS
Nassau,
March 25, 2018.
Comments
Porcupine 6 years ago
Mr Moss, generally what you say is true. However, for a country such as The Bahamas, and since unlike the US and Britain we can't print our own money, the deficit means that we are spending a huge percentage of our tax revenue to pay INTEREST on all of the money we have borrowed. This INTEREST is paid out before our family islanders get decent clinics, before many have running water and on and on. If we had more confidence in our economy, and had a decent banking track record, see loan repayment, our economy could expand due to the nature of fractional reserve banking. While I believe that present day banking is an unfair and unethical enterprise, our own bad habits and ways have helped get us in the situation we are in.
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