NASSAU, Bahamas – The main opposition Progressive Liberal Party (PLP) on Wednesday labeled the 2020/21 budget as the worst budget in “living memory”.
Following the tabling of the budget by the Dr Hubert Minnis administration, Deputy leader of the PLP, Chester Cooper said the administration had failed to implement “common sense fiscal measures”.
“The precarious financial situation we find ourselves into today has less to do with the hurricane and COVID-19. However, it represents the cumulative impact of a series of bad fiscal decisions over the past three budget cycles.”
Cooper made the comments after Finance Minister Peter Turnquest delivered the Budget in Parliament outlining a number of measures to provide economic support amid the COVID-19 pandemic.
“The Minnis administration has squandered the past ten weeks by failing to implement the common-sense fiscal measures that the party and myself outlined months ago.”
These measures include a ‘back-to-school’ VAT holiday on school supplies, a US$48 million allocation for continued unemployment assistance and a temporary incremental monthly increase of $50 in the old age pension.
Calling the budget “unimaginative”, “unimpressive” and “unbelievable”, Cooper said the government’s economic handling of the pandemic has made matters worse in the country “than they ought to have been”.
He was also critical of the Minnis administration’s decision to borrow more funds from international agencies, saying their lack of planning and “reckless” borrowing has led to the “biggest deficit and debt level” in the country’s history.
“So, now when you hear IMF, I want you to remember that IMF stands for – ‘It’s Minnis’ Fault’. We told this administration to borrow wisely, borrow to invest in Bahamians and in less than three years, they borrowed more than $3 billion gross and close to $1.5 billion net with nothing to show,” he said.
Meanwhile, members of the private sector executives on Wednesday said “our worst nightmare has come true” after the government unveiled record deficit spending that will carry the national debt past the $10 billion mark by June 2022.
Unveiling a record fiscal deficit, with revenues down by more than $900 million compared to the previous fiscal year’s forecast, Turnquest said the government had elected to undertake massive borrowing to keep the economy “afloat” rather than let it be overwhelmed by COVID-19’s economic lockdown and 30 percent-plus unemployment rate. (CMC)
The Dr Hubert Minnis administration was told its latest budget was unimaginative and unbelievable. (GP)
