The People of the Commonwealth of the Bahamas are currently suffering severe austerity caused by Covid most recently and Horrible National fiscal mismanagement for Decades.
The Political class still think they are serving up the sweetest pie ever made.
Probably is pretty sweet, for them.

**"This would inevitably involve new and/or increased taxes, spending cuts or a combination of both to bring the annual fiscal deficit down "** Well we all know what our Governments will choose. Brace for increase taxes, as each Government can never not stop spending so that is not going to happen. Hopefully the straw that breaks our back happens soon.

The Bahamas spends about 18 percent of its GDP in government spending. This is about the lowest percentage on earth. You will certainly be hard pressed to find anything close if you actually look up the facts. FYI, the world average is about 40 percent. This goes for developed and developing countries, Asian ones, Caribbean ones, European ones and the US of A (between 38 and 43 percent for the last two decades).

On the other hand (almost uniquely on earth) it has no tax on income, capital gains or even multimillion dollar corporate profits and it goes out of its way to tax foreign property owners VERY lightly and does not take and resell their property if they do not pay. Instead, all of its taxes are on the poor and middle class (consumption taxes).

And you think the problem is too much spending (on the poor, who need it, and pay all the taxes), rather than the wealthy having to pay their fair share as they do everywhere else on earth? Wow. Ignorance is going to kill this country!

who says what the other countries are doing is the right way to do?

Someone who made millions in their home Country, paid taxes there, and now resides in the Bahamas, owes Bahamians a fair share of their wealth?
News flash for you: there are hardly any wealthy Bahamians. The rich you refer to are mostly foreigners who chose the Bahamas, and can choose to leave also. If you like government spending so much, North Korea is near 100% GDP Government spending. BTW didn't see any government officials take a pay cut to share the pain of the Pandemic with the people. On the contrary, they are issuing bonds at 9+ points to pay their salaries. This is the government spending you tout so highly.

C2B, you are using apples and oranges. Start with this question first. Is it right to place the majority of the tax burden on the poorest? Is the type of regressive taxation we have in The Bahamas fair, Christian, sustainable? Should there be a fair tax on those who made their millions in their home Country and then want to live in a small Paradise? Absolutely. The other Country does not contribute to our economy. Want to go visit Disney World? It ain't cheap. And, they don't lower the price because of the country you came from. Raise the property taxes on the higher end properties. If the owners don't like it, and don't pay, sell the property like they do in every other civilized country. Time for us to start looking out for the majority of Bahamians. Not just wealthy people. In our short history, we haven't tried that yet.

All good, though we all know the civil service is overly bloated. So imagine what they could do if they reduced that and then used the savings on providing better service (maybe NHI with good hospitals and clinics, maybe better schools, maybe ensuring no-one goes hungry, hopefully all). This way the tax rate would not need to go up. But if we just increase it as we are so low the level of service would remain the same. Has anyone seen any great change since VAT was introduced?

Play the political card all you like the fact is PLP FNM or any other governing party would have been subjected to the terrible series of consequences that have happened of late. Yes assistance is required but bear in mind running a country and its finances are just a larger scaled up version of domestic finances. Simple truth is you can only spend what you earn and only borrow what you can repay. In simple terms if an individual maxes out their credit they either have to cut back on personal expenditure and or take a second source of income. Every country is facing huge deficits including the UK which has already told the population to prepare for tax increases. The Bahamas with its reliance on tourism, small population is of course in a very difficult position. That being said prior to this and after hurricane Dorian the government paid out a bonus to every teacher of $1500. Why when the countries finances are already in a dangerous state.

Sorry OMG, the mistake that "running a country and its finances are just a larger scaled up version of domestic finances." is one made by every so-called businessperson who enters into government thinking. The two are diametrically opposed. A household, along with business, is only to look out for their own. Bankers have convinced us that we could not live without their dictates, their worldview, their laws. A quick look at who has gotten richer and richer during these times of crisis should be a key to this understanding. The complete decoupling of the world of finance and the real economy is a clear indication of the problem. The stock market is doing well. The rich are doing just fine, and getting richer. While the vast majority of the world's population is suffering. So, we want our politicians to continue doing the same thing? Just more of it. Sorry, we need a complete revolution in our thinking. The innovators are there. They just cannot get a word in edgewise due to the status quo in who presently holds the power. We have allowed the rich to educate our people. Those who rise to the top are part of the system that is oppressing the world's people. That is why it is clear we have so few leaders on the world stage. We have been educated to think only of ourselves. Could this not be more evident?
Why are there rich bankers. What exactly do the banks produce? Read the history of the banks and their mode of operating. "The people" have absolutely no say in matters of banking. None. It is a secret cabal of white men who control the world. Conspiracy? Hardly.

NO Bahamian Government (political elite) has the BALLS to change the present system of taxation ........ it suits themselves, friends, family & lovers (aka special interests)

We need a bankruptcy act, so that people can be freed from all debt every 7 years just like in the USA. To do that, you have to have no assets and near zero income. It is a tough standard to meet. You can't just "claim" be poor and destitute, you actually have to be.

This would help raise up our brothers and sisters out of poverty and also send a message to predatory banks and lenders to stop taking advantage of the poor. Don't give loans to people who can't pay and then haul them to court.

Of course, so many bankers and lawyers and MPs are cut from the same cloth and benefit from the status quo, that this would never happen. The poor can still be targeted by placing cars in the mall and putting balloons on them. Also, the rich love to propagate the myth that it is better to buy a home than to rent. Oh yeah. Sure it is - LOL. Anything to get you into debt so you become a puppet on their strings.

The Bahamas is not set up to benefit 90% of its citizens ........... Just look at how the Government is reacting to Covid & reopening for the tourists.

The economic machinery of this country is predatory and myopic ....... the top 10% live their best lives and the rest are now scrapping to survive ...... Dorian & Covid laid this bare for everyone to see.