EDITORIAL: Doing the best we can with what we have

As of Thursday, May 28, 2020

THOSE who were expecting an exciting Budget yesterday will have come away disappointed.

To be fair to Finance Minister Peter Turnquest, he has been presented with the hardest of courses to chart amid the economic storm brought on by COVID-19.

Deficit figures have skyrocketed - $1.3bn for the upcoming fiscal year, and $813.4m for the following period. Debt figures go up with that too, forecast to be around 85 percent of GDP by the end of the 2021/22 period.

That’s horrifying, but unsurprising given the number of people out of work, the collapse in government revenue and the uncertain outlook ahead. Not to mention the economic damage already caused by the literal damage from Hurricane Dorian.

So it’s a softly, softly approach from Mr Turnquest for now. No job cuts in government – because the economy needs all the workers it can get right now. No new or increased taxes – because up to half the workforce is unemployed so what money would be coming out of those pockets to help lift the economy?

Indeed, there are even some tax reductions and extra spending in areas such as social services, which is going to need to support a lot more Bahamians than previously.

The belt will be tightened in other areas – with international travel cancelled for the government for the next year, and no more red plate vehicles for ministers. The old saying there ain’t no such thing as a free lunch holds true at Parliament too – with no more breakfast and lunch being served there.

Duty changes to encourage construction are useful too – that will get building work under way, and put wages in the hands of construction workers.

Part of the difficulty of course is that the Budget comes at the precise moment when we are still bailing out water. How long we will be in this position is still very hard to say – with only a tentative opening date of July 1 set, and our biggest tourist market, the US, still suffering from huge numbers of cases and the highest death total in the world.

There are some clever ideas – such as the $200 vanity licence plates to boost revenue from those with extra money in their pockets. That kind of thinking could be used in a larger way as the picture starts to become clearer of what the country will be like in the aftermath of COVID-19.

For example, there is talk of a reduction in the number of work permits – but would a policy of courting people to come to live in The Bahamas work better? There are vast swathes of land alongside canals in Grand Bahama ready and waiting for residents – can we coax investors to come and make The Bahamas their own, and help to grow our economy with it?

Ingenuity will be needed going forward – and even the Prime Minister, Dr Hubert Minnis, has acknowledged that, talking of creating a new approach for our economy. This Budget is trying to keep the economy steady at a time of the greatest upheaval – and if it was being presented six months from now rather than before the borders reopen, it might be very different. For now, it’s doing the best we can with what we’ve got. That ingenuity, though, let’s allow more of those ideas to bloom when opportunity allows.

The_Oracle 3 years, 11 months ago

Ha ! Doing the best we can with whatever we can borrow! I also question best, setting the bar pretty damn low......

Economist 3 years, 11 months ago

We will never get any investors until we change our immigration policy and make immigration an efficient department that can actually trun around a FDI investors "residents and work permit" applications in 30 to 45 days insted of "whenever we feel like getting around to these damned foreigners applications".

Customs needs to be made a more courtious well trained and efficient department to facilitate, insted of frustrate, business.

Mr. Kinsale made a good point the other day about investment which we should follow.

Giordano 3 years, 11 months ago

It is good but not enough. We need leaders with better vision and higher quality of leadership. Public safety is a long standing,stationary problem in The Bahamas. Even with the curfew we still have house breaking,murders, stealing ,car's breaking, drunkers sipping liquor in public corners and gathering in groups,sometimes more than ten people, also Police Patrol Cars shining by their ABSENT. Only possible to see a Police Patrol Car by nearby cabinet's members home.This They really hold public services as their private stuffs only for themselves neglecting the general public.

Emergency services like 919 is really a disaster. They take too long to answer ,and sending a unit to address matters of emergencies, it's a nightmare. Meanwhile law abiding citizens are being victimized and their human dignity is really shrinked by the government who was elected to solve problems, and not to aggravate and created new ones. The current status quo is very shameful. All the government knows, it's to borrow money without any kind of truthful transparency,liabilities,dignity & respect as well as decency to restore better quality of life for all. People should deny legitimacy to this so irresponsible Bahamian Government. Where are the FORTY MILLIONS FOR THE GREEN BARRIER ? That money was barrowd from the BID to plant "Mangroove trees, and they can't even show "A single tree planted",with the excuse to protect us from hurricane and flooding or tsunami. They are a bunch of cr***.