Budget communication - how it came about (2023)

12:30pm:Premier Davis highlighted the coronation visit and meeting Mayaguana Grade 12 student Kajah Knowles, who was carrying the Bahamian flag. "This young lady from Mayaguana and I, the former Cat Island youth, stood up to represent our great country."

Closing his budget statement, Premier Davis said, "I firmly believe that the Bahamas can achieve a lot if we put our minds to it. We all need a chance."

12.25：The prime minister has cited higher-than-usual interest rates in his 2022 budget strategy report, which will lead to higher interest payments. The deficit as a percentage of GDP increased by 0.2 percentage points, above the target of 0.7%, but the budget is still expected to remain balanced by 2024/25.

Premier Davis said current revenue was $3.316 billion, current expenditure was $3.085 billion, and the current surplus was $230.7 million. It forecast a current deficit of $164.3 million, a change of $395 million.

Governor Davis said interest expense is expected to be $612.7 million and net income is $481.6 million, compared with $68.4 million in the current period.

Capital expenditures increased by $5.6 million compared to the planned $364.6 million, according to Davis. The total deficit, excluding debt service, is projected at $131.6 million.

12:15 p.m.:The first home buyer payment exemption for owner-occupied homes will be extended to three-family dwellings. Incentives for housing projects will be extended to NGOs up to a construction value of $300,000 per unit.

Prime Minister Davies is now talking up an installment payment scheme the government is investing in that will "provide an alternative route to home ownership by allowing tenants to rent properties with the option to buy later".

Noting that 80 per cent of graduates from the University of the Bahamas are women, Mr Davies said it was "surprising and disappointing" that a growing number of young people were not receiving free education.

According to Governor Davis, 200 additional teachers, support staff and counselors have been hired to fill teacher shortages.

Prime Minister says funding for BAMSI, BTVI and Ministry of Education will be increased.

Funding for the establishment of a creative and performing arts school. The prime minister said it "brings us one step closer to realizing the dream of many".

According to Premier Davis, the budget is earmarked for the CARIFTA swimming and triathlon championships, as well as the World Relay.

The prime minister, who sounded particularly eager, pointed to his longstanding association with swimming and said a 50-meter swimming pool would be built on Grand Bahama Island and a sports facility on Family Island. Funding is also provided for the development of a new national sailing sport.

Prime Minister Davies said funding for private schools and children's homes had been increased, citing "post-pandemic" challenges.

12:05 p.m.:$22 million is expected for solar technology in Mayaguana, Inagua, Crooked Island, Acklins and Long Cay. Prime Minister Davies said a $20 million fund would be used to discuss the promotion of green technology for small and medium enterprises.

Premier Davies said the budget had earmarked funding for the National Youth Guard programme. The size of the funds was not mentioned in the speech, but it was noted that they would support "their personal growth and development" and that we were "investing in the future and security of our nation".

Premier Davis highlighted some of the problems with poor nutrition and housing and announced a national school breakfast programme.

Noting that hunger doesn't just affect students, Chancellor Davies also announced that there will be a special food aid scheme to fund organizations that provide food to those in need.

On health issues, Premier Davis said that a new medical facility will be built on Grand Bahama Island, a new hospital will be built in New Providence, and the infrastructure of clinics on Family Island will be improved. National Health Insurance and prescription drugs are also integrated.

Since recruits have to pay for dependents, there are concerns about military and police health insurance. The prime minister said uniformed branches would continue to be covered, while new members would be entitled to "subsidized family protection".

Premier Davis said it was the first of its kind in the Bahamas, which created a national organ transplant program.

12:00 PM。：Premier Davies said the government would continue to encourage public-private partnerships, noting projects already underway, such as building roads and airports on several islands.

Premier Davis: "In this budget, we're allocating $4.7 million to continue jobs programs in Grand Bahama."

In addition, salaries for the police, defense force, social workers and others have also increased.

Mr Davies discussed food safety and referred to the previously launched golden egg scheme. The government will continue to strengthen food security and maintain agricultural spending, he said. Allocation of funds for the expansion of BAMSI and equipment for farmers and land development.

Premier Davies said we must act quickly to build our state of readiness. "We try to do everything we can to reduce our carbon footprint."

Episode 11.55:The prime minister said there would be no increase in VAT, customs duties, excise duties, tax rates or property taxes. "Instead, we will increase tax revenue by improving tax compliance and enforcement. This is based on simple principles of fairness."

Mr Davies said "most people pay taxes" and asked why we allowed some people not to.

Prime Minister Davies said the previous government "allowed certain groups of people not to pay tax".

Mr Davies said a large taxpayer entity would be created for the 100 or so companies paying $1.7 billion in taxes. He said the technology would be used to detect anomalies in reports. It promised to update the list of yacht registration fees.

Prime Minister Davies said budget allocations to state-owned companies had been cut, while clarifying guidelines for running the companies to ensure they met state budget targets. The goal, he said, is to make sure they are profitable.

Mr Davies will advocate for a defined contribution pension system for government employees.

11,50 Satie:Prime Minister Davies said steps had been taken to reduce crime - and results so far suggested it was not happening "as quickly as any of us would like". Urban renewal extended. Recruit hundreds of new police officers, defense officers and prison officers. Additional funding for saturation patrols.

Governor Davis said funding for the "second chance" program has been increased to reduce recidivism. The budget envisions a broader approach that includes prevention, testing, rehabilitation, funding for community center and courthouse reconstruction, and a new justice complex.

The Prime Minister said funds had been allocated to build women's shelters and legal aid for victims of domestic violence had been increased through social services and the Ministry of Justice's Victim Support Fund.

Premier Davis highlighted one area of ​​national security that could be of concern. Condemns the efforts of some to advance national security issues for their own benefit. "Violent and often racist language ... has no place in our society."

"We should put this story behind us. You know, we are all children of God," Mr Davies said.

PM Davis: "We have to say no to poison, we have to say no to hate."

11:45 a.m.:Prime Minister Davies said it was possible to secure more domestic funding to ensure more stable funding for the country.

Mr. Davis said excessive debt was a major factor in the Bahamas. In October 2022, Moody's downgraded the U.S. Treasury's rating due to rising debt, but upgraded it to "stable," "reflecting Moody's confidence in our strategy," he said.

He noted that debt relief is possible if the country commits to certain environmental measures.

Premier Davies will now introduce the budget's fiscal measures.

Mr Davies said the measures had reduced illegal immigration and safe return operations would continue. Allowances for RBDF naval personnel will be increased, he said. A slum demolition task force will also be established.

11:30 a.m.:PM Davis said debt ratios are falling. He noted that in June 2021, debt-to-GDP was over 100 percent and "it's now 83.5 percent."

Premier Davies said public spending remained on track and was "fully in line" with targets.

Episode 11.25:Spending for the first nine months of the fiscal year rose $145.3 million to $2.3 billion, or 67.8 percent of the projected budget, according to Governor Davis. On the revenue side, spending rose to $2.1 billion, or 69.4 percent of the budget. Staff expenses rose $55.7 million to $594 million, or 71.7% of the budget.

Mr Davis cited positive changes for government workers, including an increase in the minimum wage from $210 to $260, and collective agreements signed with various unions, including a retention bonus scheme for teachers and administrators and a retention bonus for nurses. He pointed out that this was in part to prevent "our friends up north" from stealing our nurses and teachers.

"The deficit is heading in the right direction: 'down'," said Prime Minister Davies.

Prime Minister Davies said the large surplus meant the government's main spending was less than it took in.

11:20 a.m.:According to Chancellor Davies, real GDP growth is expected to hold steady at 4.3% in 2023. "We think it's great."

Total revenue for the first nine months was up $267.2 million, or 14.5 percent, from a year earlier, the premier said. So far, the total revenue after nine months is 73.9% of the budget, he said. He compared it to the 2018-19 period. Before the pandemic, revenue accounted for 63.7% of the projected budget.

Premier Davies pointed to the increase in tax revenue, which he said would account for 72.9 per cent of the proposed budget. Compared with 2018-19, this is 62.6% of the planned budget for the first nine months.

Mr Davies joked: "Anyone call me CFO?"

Special event permits were said to have increased by $8.1 million to $89.1 million. International trade taxes amounted to $498 million.

11:15 a.m.:Premier Davis says the Hawksbill Creek deal on Grand Bahama Island won't work. He said now was the time for decisive action. A separate detailed announcement is likely to be made while the Hawksbill Creek agreement and the situation in Grand Bahama are discussed, he said.

Occupancy rates for hotels and rental properties are rising, Premier Davis said, pointing to a rising holiday rental market.

Premier Davies said the modest 0.1 per cent drop in consumer prices was due to lower food and soft drink prices.

Foreign exchange reserves now stand at $2.7 billion, with Prime Minister Davies citing the increase as a result of economic activity.

11:05 a.m.:After outlining the general outlook for the world economy, particularly for the US and China, Premier Davis returned to the domestic economy in his budget statement. He noted that economic activity in the country is recovering, with real GDP growth of 14.4% and nominal 11.9%. He said "the boom in the Bahamas continues," noting the recovery from the COVID period.

Prime Minister Davies said he believed the government's fiscal policies, including cutting VAT, had "contributed significantly" to growth. He mentioned other elements, including the digitization of state services, especially the granting of concessions and legal reforms.

The total number of tourist arrivals has increased significantly, he said. Household spending is expected to grow by 7% through 2022. New Providence's GDP is projected to grow 17%. Premier has also seen growth on islands such as Rum Cay, Cat Island and San Salvador. Exuma also accounted for 2.1 percent of the country's economic growth after a 33 percent year-on-year increase in GDP due to a surge in tourism, he said. In 2022, Andros achieves an economic growth of 6.2%, with real estate contributing the most. Bimini and Berry Island will grow 59% in 2022. But it's not all good news -- Abaco has weathered the recession and is still not at pre-Dorian levels. Housing and construction slowdown led by Prime Minister Davies.

Grand Bahama accounts for 12 percent of Bahamian GDP, but the economy is down 9 percent year-over-year, despite a slight improvement in tourism, Premier Davis said. The prime minister said statistics showed "the continued economic decline in Grand Bahama."

10.40 Mindfulness:Premier Davis stated that the Budget is designed to enhance national security, economic security and the lives of the people of the Bahamas. The global economy is showing signs of improvement, although they still have a lot of work to do to recover from recent challenges, he said. Average consumer prices in the U.S. have risen 8 percent, while interest rates have risen 10 times, largely due to higher inflation, he added. It illustrates the impact of rising borrowing costs on the Bahamas.