The Tribune

12.30pm: Prime Minister Davis highlights coronation visit and meeting Kajah Knowles, a grade 12 student from Mayaguana, who carried the Bahamas flag. "This young lady from Mayaguana, and me, this once-young boy from Cat Island, stepping forward to represent our great country."

Prime Minister Davis concludes his Budget communication by saying "I firmly believe that Bahamians can achieve greatly, whenever we put our minds to it. What each of us needs is just an opportunity".

12.25pm: PM cites higher than usual interest fees since 2022 Fiscal Strategy Report, leading to higher interest payment spending. Deficit as % of GDP up 0.2%, higher than the 0.7% target set - but still anticipates balanced budget by 2024/25.

Prime Minister Davis says recurrent revenue projected at $3.316bn, recurrent expenditure at $3.085bn, recurrent surplus at $230.7m. Projects recurrent deficit of $164.3m, a $395m change.

Interest expense is projected at $612.7m, and surplus on balance forecast at $481.6m compared to $68.4m from current period, says Prime Minister Davis.

Mr Davis says capital expenditure up $5.6m, projected at $364.6m. Overall deficit excluding debt repayment projected to be $131.6m.

12.15pm: First home exemption benefits for owner-occupied residences to be extended up to triplexes. Concessions for housing projects to be expanded to non-government entities up to maximum construction value of $300,000 per unit.

Prime Minister Davis is talking now about a rent-to-buy scheme the government is investing in, offering "an alternative path towards acquiring a home by allowing tenants to rent a property with the option to buy it later".

Mr Davis notes the 80% graduates from University of The Bahamas being women, and says it is "noteworthy and disappointing" that more young men are not taking advantage of free education on offer.

200 extra teachers, aides and counsellors recruited, says Prime Minister Davis, to address shortage in teachers.

The PM says funding will be increased for BAMSI, BTVI and Ministry of Education.

Funds allocated to create a school for the creative and performing arts. PM says this "takes us a step closer to fulfilling the dreams of many".

Budget allocated to host CARIFTA swimming and triathlon championships, plus the World Relays, Prime Minister Davis says.

PM, sounding particularly eager, notes his long association with swimming and says there will be a 50m pool built in Grand Bahama, as well as a Family Island sports facility. Funds also set aside to develop sailing, the new national sport.

Prime Minister Davis says there is increased allocation for independent schools and children's homes, citing challenges "in the aftermath of the pandemic".

12.05pm: $22m set aside in Budget for solar technologies in Mayaguana, Inagua, Crooked Island, Acklins and Long Cay. $20m facility in negotiation to encourage green technology in small and medium businesses, says Prime Minister Davis.

Prime Minister Davis says funds in this Budget for the National Youth Guard Programme. Size of funding not mentioned in the speech, but notes it will support "their personal growth and development" and that we are "investing n the future and security of our nation".

Noting problems for some with food and poor housing, Prime Minister Davis announces a National School Breakfast Programme.

Noting hunger does not only affect students, Prime Minister Davis also says there will be a Special Food Assistance Programme to fund organisations feeding those in need.

On health issues, Prime Minister Davis says there will be a new health facility in Grand Bahama, a new hospital in New Providence, and improvements in infrastructure for Family Island clinics. Also a consolidation of National Health Insurance and Prescription Drug Plan.

There has been some concern over health insurance for uniformed services with new recruits having to pay for family members. PM says uniformed branches will continue to have insurance coverage while new members will be eligible for "subsidised dependent coverage".

A first for The Bahamas, says Prime Minister Davis, with the creation of a national organ transplant programme.

12.00pm: Govt to continue to leverage public private partnerships, says Prime Minister Davis, and notes projects already underway such as road and airport developments on a number of islands.

Prime Minister Davis: "In this Budget, we have allocated $4.7m to continue an employment programme in Grand Bahama."

Also notes salary increases for police, Defence Force, social workers and others.

Mr Davis talks of food security, noting the previously launched Golden Yolk egg programme. Says govt will continue to increase food security and maintain expenditure in agriculture. Funds set aside for expansion of BAMSI plus equipment for farmers and land development.

Prime Minister Davis says we need to move at pace to prepare our state of readiness. "We are committed to doing what we can to reduce our carbon footprint."

11.55am: Prime Minister says no increase in VAT, no increase in Custom duties, excise duty, tax rates or real property tax rates. "We will instead increase revenue collection by improving tax compliance and enforcement. This is based on a simple principle of fairness."

Mr Davis says "most people pay their taxes" and asks why do we allow some not to do so.

Prime Minister Davis says previous administration allowed "a select group of people not to pay their taxes".

Mr Davis says there a large taxpayer unit will be established for the 100 or so businesses that account for $1.7bn in taxes. Says technology will be used to identify anomalies in reporting. Promises an updated fee schedule for registration of pleasure crafts.

Prime Minister Davis says the Budget allocation has been decreased for state-owned enterprises along with clear guidelines for the conduct of those businesses to ensure they conform with national fiscal objectives. He says it is the goal to ensure they become profitable.

Mr Davis will aim for contributory pension scheme for public sector employees.

11.50am: Prime Minister Davis says initiatives launched to reduce crime - says results so far while promising not coming as quickly "as any of us would like". Urban Renewal expanded. Hundreds of new police, Defence Force and corrections officers hired. Extra funds for saturation patrols.

Prime Minister Davis says funding increased for Second Chance Programme to reduce recidivism. Says an even more comprehensive approach in this budget, including prevention, detection, rehabilitation, funds for renovation of community centres and courts plus new judicial complex.

PM says funding allocated to build women's shelter, plus increasing legal aid support for victims of domestic violence, both within social services framework and a victim care fund in the Office of the Judiciary.

Prime Minister Davis highlights area of national security that may grow into a cause for concern. Deplores efforts by some to push issues surrounding national security for their own benefit. "Violent and often racist language... have no place in our society."

Mr Davis says: "This is the kind of history we should have put behind us. You know, we are all God's children."

Prime Minister Davis: "We must reject poison, and we must reject hatred."

11.45am: Prime Minister Davis says there is potential towards more domestic financing to provide more stable resourcing for the country.

Mr Davis says the overhang of debt has been a significant factor in The Bahamas. He said in October 2022 Moody's downgraded the nation because of the rise in debt, but that was revised upwards to stable, "reflecting Moody's confidence in our strategies".

He raises the possibility of debt forgiveness if the country commits to certain environmental measures.

Prime Minister Davis to now outline the fiscal policy measures of the Budget.

Mr Davis says measures have ensured a reduction in illegal immigration, says Operation Secure Restore will continue. Says there will be enhanced allowances for seagoing RBDF personnel. There will also be a shanty town taskforce for demolition.

11.30am: Prime Minister Davis says debt to GDP ratio has been trending downwards. He notes the debt to GDP ratio in June 2021 was over 100, and "we now have it at 83.5%".

Prime Minister Davis says public spending has remained on track and is "well within" the budgeted amount.

11.25am: Prime Minister Davis says expenditure up $145.3m to $2.3bn in first nine months of fiscal year, 67.8% of Budget target. In revenue, spending increased to $2.1bn, 69.4% of Budget forecast. Spending on employees increased by $55.7m, to $594m, 71.7% of Budget targeted.

Mr Davis cites positive changes for public sector workers, including increase in minimum wage from $210 to $260 as well as industrial agreements signed with various unions, including retention bonus scheme for teachers and administrators, and nurses retention bonus. He notes this is in part to prevent "our friends to the north" from poaching our nurses and teachers.

Prime Minister Davis says "Deficit is heading in the right direction: “Down."

Prime Minister Davis says sizeable surplus signifies that primary govt spending is less than revenue collection.

11.20am: Real GDP growth in 2023 projected to settle in the range of 4.3%, says Prime Minister Davis. "We think that's great."

PM says total revenue for first nine months saw increase of $267.2m or 14.5% compared to previous year. To date, total revenue stands at 73.9% of Budget forecast after nine months, he says. He compares it to 2018-19 before pandemic, where revenue was 63.7% of Budget forecast.

Prime Minister Davis notes an increase in tax revenue, saying it accounts for 72.9% of the Budget forecast. Compared to 2018-19, it was 62.6% of Budget forecast for first nine months.

Mr Davis jokes "Someone called me the chief tax collector?"

He says licences for special business activity increased by $8.1m to $89.1m. Taxes on international trade up to $498m.

11.15am: Prime Minister Davis says the Hawksbill Creek Agreement in Grand Bahama does not work. He says time has come for decisive action. He says there will be a separate detailed announcement which may be during course of debate with regard to Hawksbill Creek Agreement and situation in Grand Bahama.

Occupancy rates for hotels and rentals up, showing upward trend in vacation rental market, says Prime Minister Davis.

Prime Minister Davis says slight dip of 0.1% in consumer prices driven by a drop in food and non-alcoholic beverages prices.

External reserves now total $2.7bn and Prime Minister Davis cites growth down to economic activity.

11.05am: Having set out a general outlook of the global economy, especially the US and China, Prime Minister Davis now returned to the domestic economy in his Budget communication. He notes a rebound in country's economic activity, with real GDP growth of 14.4%, and 11.9% in nominal terms. He says the "boom in The Bahamas has continued", noting the recovery from the COVID period.

Prime Minister Davis says he is convinced govt fiscal policy including reduction in VAT "contributed significantly to the economic growth". He cites other elements including digitalisation of govt services especially granting of concessions and legislative reforms.

Total visitor arrivals increased significantly, he said. Household expenditure up 7% in 2022. New Providence GDP up 17%. The PM also notes growth in islands such as Rum Cay, Cat Island and San Salvador. He says Exuma also boasted 2.1% to country's economic growth, after a 33% GDP growth over previous year thanks to tourism increase. Andros had economic growth of 6.2% in 2022, with real estate being the primary contributor. Bimini and Berry Islands saw growth of 59% in 2022. Not all good news, however - Abaco suffered a drop in its economy, not yet reaching the levels seen before Hurricane Dorian. Slowdown in real estate and construction sectors cited by Prime Minister Davis.

Grand Bahama contributes 12% of overall GDP of Bahamas, but economy declined 9% compared to previous year, says Prime Minister Davis, despite slight increase in tourism sector. "Prolonged decline in Grand Bahamian economy" shown by statistics, says PM.

10.40am: Prime Minister Davis says the Budget aims to strengthen national security, economic security and the lives of people of The Bahamas. He says the global economy is showing signs of improvement although there is still much work to be done to recover from recent challenges. He adds that average consumer prices rose in the US by eight percent, while policy rate of interest has been raised ten times, driven primarily by rising inflation. He highlights the effects on The Bahamas in terms of higher borrowing costs.