When you add to this government mismanagement and inefficiencies then take into consideration that a large number of persons are not paying their share of taxes, you can see the burden that is being put on the persons who are paying taxes. Then since the national debt is an ever increasing, hungry monster that is drooling to consume us, one day this too will have to be settled at who's expense?

Hopefully the revenue collection from VAT and gaming taxes will reduce the national debt and pay off for some of the administrations project cost overruns.

VAT, in essence, will make 4,500 businesses revenue collection agents for the government. I think all of these companies will be honest and pay over to the government the revenue they collect.

We should expect a big windfall of taxes from the legalization of gaming.

Nothing to worry about, all will be fine. Lets give them more time to sort things out.

Also we will be drilling for oil which will makes lots of money and diversify the economy. And don't forget stem cell research which will start up a whole new biotechnology industry. Wow...that's 3 new industries if you include numbers.

The Government of The Bahamas is a FAILURE. These politicians are exactly what is WRONG with this country. The political elite are a vampire on the neck of the Bahamas. We have traded one set of bad Masters for an even worse and uncaring master.

If my calculations are right (roughly) the amount of money collected from VAT, gaming taxes and the outstanding property taxes do not equal the $1 billion the government is borrowing seeming every year. While the government claims $500 million is owing on property taxes, remember that more than half this amount is interest charges dating back, in some instances more than 20 years. So once this is either written off or collected ( much of it will have to be written off because many of the properties on which the tax has been assessed are either not in existence or unoccupied and dilapidated that the tax is not applicable) the annual property tax will be no more than $200 million. They expect to collect $40-50 from gaming taxes and a guestimate of VAT is $500 million. This will still leave a shortfall of $300 million just on what is being borrowed annually. This means that eventually the government will have to find additional means of financing its operations and can very well mean increases in taxes or introduction of new taxes. Again the burden will fall on a small segment of the population.
GOVERNMENT MUST SEEK TO REDUCE THE COSTS OF ITS OPERATION.
1. It must stamp out or minimize corruption and dishonesty.
2. It must reduce its wastage and inefficiencies.
3 It must maximize the value it receives on each dollar spent.
4. It must reduce its borrowing and hence reduce its interest costs.
5 It must reduce the number of leakages in the economy, by foreigners (sending monies home) by foreign investors (milking profits) and by excessive imports.
6. It must stimulate the local economy. Locally grown produce and locally made products can stimulate inter-island trade and generate wealth locally. It is better to subsidise local farmers to produce than to have to import most of food products.
7. It must reduce its dependence of fossil fuels and the tremendous expense associated with it. Despite the talks and despite the availability of alternative forms of energy (renewable) the Bahamas is still almost 100 percent dependent on fossils.

Excellent points John and well researched. However, the administration can't reduce expenditure as there are so many poor people that need jobs, money, healthcare and education. The administration can't increase transparency (e.g. BEC sale and how they tried to sell BTC during their last administration) for obvious reasons. It can't repay the nation debt because it is too big. It can't stop the waste and leakage for obvious reasons again.

We are still investment grade so we can continue to borrow at good rates.
So the debt must and can keep growing. I think we will be OK through 2020. After that hopefully the oil revenues will kick in and we can pay off the debt altogether.

Hi John

Please see article below on Barbados. They recently implemented VAT and it didn't bring down the debt. The extra money from VAT can go to help the newly created poor.

We have a safety net. We can go to IMF for a loan if our debt gets up to 100% of GDP.

Barbados Seen Needing IMF Help Amid No Growth, High Debt
2014-10-14 14:06:47.684 GMT

By Aleem Khan
Oct. 14 (Bloomberg) -- Barbados business leaders and
economists say the Caribbean island should seek an accord with
the International Monetary Fund as the government struggles to
spur an economy with one of the world’s heaviest debt burdens.
Efforts by the government to trim the public sector by
firing 3,000 workers and reining in spending failed to spark
growth in the first half of the year in a country with a debt
load equal to 96 percent of gross domestic product. That
prompted the Barbados Chamber of Commerce to say the government
should consider talks with the IMF.

Comrade Bran reminds me of the uncle who out nowhere suddenly shows up at family function then disappears for months again. Where he was or goethe nobody knoweth or much cares. He's just an harmless uncle lost out there somewhere.

@ observer if you believe that, Junkanoo will be in space first. Look over the years that the PLP has been in power, where are the results of anything they have done? And you say give them more time, MORE TIME to do what? They investing in Carnival, what do they forecast the return to be? Nothing close to what they are spending. You just as lost as they are. More time NO THANK YOU. More time results in more of the same. Spend and steal