Bran blasts government over increased debt

Friday, May 30, 2014

By KYLE WALKINE

Tribune Staff Reporter

kwalkine@tribunemedia.net

DEMOCRATIC National Alliance (DNA) Leader Branville McCartney yesterday blasted the government for increasing the country’s debt from $4bn to $5.1bn since taking office two years ago.

According to Mr McCartney, the higher the country’s debt-to-GDP ratio, which now stands at 60 per cent, the less likely it is that the country will be able to repay its debt.

“Simply put, the government owes far more than it takes in,” Mr McCartney said in a press statement released yesterday.

“Such a reality is unsustainable and will make it even more difficult for the country to borrow in the future thus leaving the Bahamas open to further economic downgrades by the likes of the International Monetary Fund (IMF), Standard and Poors and countless other ratings agencies.”

On Wednesday, just after Prime Minister Perry Christie wrapped up his budget communication, State Minister of Finance Michael Halkitis announced the government’s plan to borrow $343m the 2014/2015 fiscal year. This figure represents a decrease from the $465m borrowed during the 2013/2014 fiscal year, he said.

However, during his speech, Mr Christie said his administration is committed to ridding the country of the “fiscal albatross” that hangs around its neck.

“By breaking the vicious cycle of deficits and debt buildup on a permanent and sustainable basis, we will reap a sizable fiscal dividend that will be available to adequately finance our aggressive economic and social policy going forward,” the prime minister said.

As part of an effort to boost revenue, Mr Christie said the government will strengthen the collection of existing taxes.

Mr McCartney applauded the government for taking the advice of the business community and the DNA regarding the collection of outstanding taxes.

“We are only saddened that conversation surrounding the new regime had to denigrate into petty bickering before finally opting to listen to the voice of the people,” the DNA leader added.

He also hit out at the government over its continued interest in foreign direct investment saying that for years successive governments have continued to rely on foreign investors to save the economy.

“While the limited economic benefit which such developments provide cannot be ignored, particularly in light of our current tourism driven economy, the time has come to diversify,” he said.

“The DNA asserts that if tourism is to remain the government’s focus, then greater ownership opportunities must be provided for Bahamians within that sector.”

According to Mr

McCartney, the government’s job creation efforts have, for years, only fed Bahamians with the “table scraps of major developments” but never provided them with a chance at economic freedom.

Mr McCartney said the prime minister’s budget was filled with the same “political rhetoric and promises” that Bahamians have become accustomed to hearing from their nation’s leader.

On Wednesday, the official opposition dismissed the government budget communication as a “dismal failure” that contained nothing but “false hope” and the “same old promises”.

During his budget address, Mr Christie spoke of the government’s plans to boost the country’s revenue, which include the regulation of the web shop industry and the implementation of Value Added Tax (VAT) on January 1 at a rate of 7.5 per cent.

“The mix of measures will allow us to move progressively to: eliminate the untenable structural imbalance between recurrent expenditure and revenue by the 2015/2016 fiscal year; sharply reduce the GFS deficit by 2016/2017 and arrest the growth in the government debt burden and move in onto a steady downward path to more sustainable levels,” Mr Christie said.

The economy’s growth in 2013 came in at 0.7 per cent, down from the 2.7 per cent that was projected by the IMF and which was factored into the previous budget communication, Mr Christie said.

Mr Christie said this “weaker than expected performance“ was due to softness in the tourism industry. He said it is estimated that tourist expenditure declined by some three per cent in 2013, as the number of stopover visitors fell by four per cent, from 1.42 million to 1.36 million.

Mr Christie said the country’s “tepid” growth in the 2013/2014 fiscal year impacted recurrent revenue.

The government expects recurrent revenue to come in at $1.465bn, which is 2.5 per cent less than was budgeted. Recurrent expenditure is expected to come in at $1.720 billion. The country’s GFS deficit is expected to be $462m, or 5.4 per cent of the GDP, in the 2013/2014 fiscal year.

Comments

TalRussell says...

I guess Bran feels it's OK to praise the government for strengthening the collection of existing taxes while bypassing the serious privacy concerns over the government's hiring of a private collection outfit to collect back taxes? But then again, least we forget the much controversial hiring of Bran's "private" law firm by Abaco's very own once-upon-a-time red shirt Edison to pursue with the collection of outstanding monies owing to his own red government.

Posted 30 May 2014, 1:14 p.m. Suggest removal

Honestman says...

Too many pronouncements Bran. Build yourself a party with seasoned and respected individuals who can break the mold of Bahamian politics and create some momentum towards being a credible force at the next election. THE DNA needs to be more than Branville McCartney.

Posted 30 May 2014, 1:55 p.m. Suggest removal

birdiestrachan says...

Mr. McCartney knows full well that much of what the Government has borrowed goes to pay for bills left by the FNM Government. Those bills must be paid and projects that the FNM has left in place must be completed . Honesty is the best policy all the time.

Posted 30 May 2014, 2:09 p.m. Suggest removal

Cobalt says...

Wait a minute.... when the FNM came to power they had to pay bills left behind by the PLP government aswell. Furthermore, it's time to stop playing the blame game. The petty politics of passing the blame back and forth is only stifling our country. The truth is, all of us have failed. The FNM has failed; the PLP has failed; and we the citizens have failed. It's time to stop pointing the finger and let's all contrive solutions to our problem! We need to be problem solvers; not problem dwellers.

Posted 30 May 2014, 2:38 p.m. Suggest removal

Well said Cobalt!

Posted 30 May 2014, 2:57 p.m. Suggest removal

Comrade Bran's blinded ambition reminds me so much of what was contained in a secret US Embassy cable about Tommy T and later reveled to the media.

"Turnquest's belief that he can sit in on (he own appointed) "focus group" probing his own leadership image without biasing the results reflects the relative navet with which Bahamian politicians approach survey research."

Bran 'tis time to get politically real and try to stop believing your own damn press releases, cause no one else are buying into you.

Posted 30 May 2014, 2:12 p.m. Suggest removal

sheeprunner12 says...

Bran .................. is a voice crying in the wilderness............ he will soon be beheaded

Posted 30 May 2014, 2:47 p.m. Suggest removal

Yup. All of us are still waiting for Brandville to establish his DNA party as a legitimate contender for the governance of the Bahamas. We're still waiting for the DNA to host a convention, reveal its candidates, and issue a manifesto to the public. Until then, he's exactly that.... "A voice crying in the wilderness."

Posted 30 May 2014, 3:48 p.m. Suggest removal

Comrades I dare not reveal my insider Green source but you are about to hear for the very first time the decided upon official theme song of the DNA, which i am told is scheduled for a July 10, 2014 release by Bran. Please appreciate that due to budgetary limits to hire an actual Bahammalander songwriter, the Green Shirts were told by Bran to simply paste over the word "Ireland" wherever it appears in the lyrics of the song and replace it with the word "Green's. I swear I didn't make this up. it's the truth. Have admit he does look touch Irish?

WOLFE TONES--WEARING OF THE GREEN

....//http://www.youtube.com/watch?v=WsoeoEFwnUI

Posted 30 May 2014, 3:41 p.m. Suggest removal

SP says...

Surly Prime Minister Christie must realize by now that facts are easily verifiable nowadays by simple internet search's.

Asinine insult to our intelligence that Christie thinks he just say any number of bullshyt excuses and we are supposed to believe him!

It is disingenuous of Christie to blame “weaker than expected performance was due to softness in the tourism industry".

Truth is, "softness in the tourism industry" is the result of 4 decades of PLP & FNM stupidity and total failure to invest, upgrade and diversify our tourism product, causing a major shift as vacationers seek alternative "FUN" tourism destinations.

That shift went to the Dominican Republic which is now the #1 tourism destination of choice in the region!

Why?.....Because the Dominican government diligently continue to seek ways of improving and diversifying their tourism product and they do all possible to ensure there is an ever increasing variety of activities for vacationers.

http://www.caribbeannewsnow.com/topstor…

http://www.caribbeannewsnow.com/caribne…

Absolute political stupidity and tribalism of the PLP & FNM are the single major causes of the Bahamas failing in tourism.

Posted 31 May 2014, 10:35 a.m. Suggest removal

Publius says...

The budget is of course dreadful, but as an aside, it is pretty clear this gentleman had not even read the budget when he made this statement and was simply making a statement (as usual) because he apparently believes he will sail in to power on merely his claim that he is neither PLP or FNM. His statement is void of analysis and is void of details and specific information, which is indicative of a person who would not have reviewed the budget legislation before speaking.

Posted 31 May 2014, 5:26 p.m. Suggest removal

JohnDoe says...

Almost my exact sentiments. In addition the statements show an appallingly obvious absence of basic economics.

Posted 1 June 2014, 3:38 p.m. Suggest removal

killemwitdakno says...

Finally someone is mentioning the debt

Posted 31 May 2014, 6:24 p.m. Suggest removal

Maybe Cable 12 TV can give the green leader a knitting show to knit green scarves, while he recites his "copycat" red shirts doctrine. I guess- if the rest of us were red sheep like Comrade Bran, we'd love give him a majority "copycat red" government, so we could see what he won't do - at least we'd shut him up and stop his damn whining.

Posted 31 May 2014, 6:39 p.m. Suggest removal

ProfessorTinker says...

Take it easy people. You all are beating the man up, but to be very honest the Bahamas need a Branville. Just like the US needs a Tea Party. Branville Green Party even though they are struggling to win a seat, they shifted the Balance of Power in this country in the last election. Furthermore you will see an extreme difference in the Parliament if the green party can secure at least 3 or 5 seats. Look at the election results the Green Party has all the votes for the FNM to win just about every seat that they lost.

Posted 1 June 2014, 11:04 p.m. Suggest removal