[Bahmas] Prime Minister presents 2013/14 Budget Communication
From Bahamas islandsinfo
Prime Minister the Rt. Hon. Perry G. Christie arrives to present the 2013/14 Budget Communication in the House of Assembly, Wednesday, May 29, 2013. (BIS Photo/Peter Ramsay)NASSAU, Bahamas — Prime Minister the Rt. Hon. Perry G. Christie said the performance of Recurrent Revenues in 2012/13 was not as robust as had been expected at the time of the last Budget because of weaker than projected growth of nominal GDP.
“That weakness has persisted and we now expect Recurrent Revenues this year to come in at $1,380 million, down by 11 per cent or $170 million from the $1,550 million Budget projection, ” the Prime Minister said as he presented the 2013/14 Budget Communication in the House of Assembly, Wednesday, May 29, 2013.
He said on the basis of that weakness, the Government implemented a number of near-term internal adjustments to ensure it meets the Budget GFS Deficit target of 6.5 per cent of GDP in 2012/13.
“Through those measures, we would have succeeded in containing Recurrent Expenditure in 2012/13 to an estimated level of $1,659 million, down by $162 million from last year’s Budget projection.
“Capital Expenditure should end up in the region of $350 million, down by $50 million from the Budget estimate.
“With these adjustments, the GFS Deficit this fiscal year should approximate 6.1 per cent of GDP, slightly below the Budget forecast of 6.5 per cent.”
Fiscal Policy 2013/14 and Beyond
Prime Minister Christie said in the 2013/14 fiscal year, Recurrent Expenditure is being held to a level of $1,737 million, just below the level set out in the Mid-Year Statement.
“Likewise, Capital Expenditure next year will be contained to a level of $295 million, not significantly changed from the $300 million projected in February.”
He said in this context, the Government expects investment in public infrastructure to be bolstered in the period ahead by public- private part.
The Prime Minister added that the Government will engage in roadwork projects across the Family Islands in the coming year including, in particular, Abaco, Andros, Acklins as well as others.
He also noted that Recurrent Revenues in 2013/14 will be enhanced by the ongoing, projected modest growth of nominal GDP.
“They will also be bolstered by the various revenue adjustment and enhancement measures that I have announced in this Communication.
“On the basis of the measures that I have outlined, Recurrent Revenues in 2013/14 are now projected at $1,503 million, still leaving a gap from the forecast of $1,580 million that I set out in February.”
Prime Minister Christie said as it stands, the GFS Deficit next year will reach $443 million or 5.1 per cent of GDP, as compared to the estimated outcome of 6.1 per cent of GDP this year.
“The central components of the medium-term plan, in respect of Recurrent and Capital Expenditure and Recurrent Revenue, will continue to engage beyond 2013/14.
“As I stated in the Mid-Year Budget Statement, we will continue to exert discipline on Recurrent and Capital Expenditure such that the levels of both continue to decline as a proportion of GDP.
He said “As for Recurrent Revenue, the tax reform package that we announced in the February White Paper, as well as the ongoing structural enhancements to revenue administration that I reviewed earlier, will contribute to a significant improvement in the revenue yield of our tax system to a level more in line with norms in the region.”
The Prime Minister said as a consequence and barring unforeseen developments, the Government expects to be able to adhere to the fiscal objectives of our medium-term plan, namely:
Both the Deficit on Recurrent Account and the GFS Deficit will be eradicated by 2015/16;
The Primary Deficit will be eliminated by 2014/15 and that is critical to reversing the upward trend in the debt to GDP ratio;
Government Debt will return to a level in the area of 50 per cent of GDP by 2016/17, as opposed to a level approaching 70 per cent in the absence of our decisive action plan to redress the public finances.
RBPF recruitment/manpower numbers to increase by 2014
The Royal Bahamas Police Force will “more than triple” the size of its recruitment and training classes to 100 police recruits during the next fiscal year compared to the 30 currently in place, Prime Minister, the Rt. Hon. Perry G. Christie said Wednesday.
Mr. Christie said the increase in the recruitment and training figures is part of his Administration’s goal of increasing the manpower of the Royal Bahamas Police Force by 450 members by the year 2014.
Presenting his Administration’s 2013/2014 Budget in the House of Assembly, Mr. Christie said the government “would have allocated $8 million” to the Royal Bahamas Police Force over the course of the 2012/13 and 2013/14 fiscal years as part of his Administration’s “unflinching commitment to do whatever is necessary to reduce crime, the fear of crime and guarantee law and order in our society.”
“Between 2012/13 and 2013/14, we will have allocated in excess of $8 million to the Police Force to allow it to increase its manpower complement by over 450 officers,” Mr. Christie told Parliament.
“More specifically, in the next fiscal year, the Force will more than triple the size of its recruitment and training class to 100 officers from the usual complement of 30.”
Mr. Christie said more than $2 million of his Administration’s 2013/2014 Budget has been allocated for the purchase of new police vehicles in the coming fiscal year. This, he said, will allow for the continued “round-the-clock presence of the Police on our streets.”
Mr. Christie said while crime “generally is trending downward, we have more work to do.” Mr. Christie said.“One of the key pillars of our agenda for change relates to our commitment to stimulate sustained economic growth in the years ahead,” Mr. Christie said.
“It goes without saying that, as a prerequisite, we must have a safe and secure environment for both our citizens and visitors. I want to reiterate at this time my Government’s unflinching commitment to do whatever is necessary to reduce crime, the fear of crime and guarantee law and order in our society.”
Prime Minister Christie said his Administration will continue to address the “urgent matter of a fully integrated approach” to fighting crime that will involve prevention, detection, prosecution and rehabilitation, through Project Safe Bahamas.
“The agencies involved include the Police, Urban Renewal, Social Services, Education, Housing, Health and the Office of the Attorney-General, to ensure that we attack the fundamental, underlying causes of crime and violence and to promote law and order,” Mr. Christie said.
“Many measures are being implemented by the Police, the Defence Force and the Office of the Attorney General,” Mr. Christie said.
The Prime Minister said additional focus will be given to the expansion of the CCTV Programme. Cameras have already been installed in the downtown and Over-the-Hill areas.
For more on this story go to:
