The government earned $1.15 billion in tax revenue in the fiscal year 2013/2014. Due to a revised fee structure, it also raked in $63.6 million in business and professional fees. The numbers signify a whopping 54.7 percent jump over the previous fiscal year. Additionally, the new customs processing fee regime helped earn the government $35.5 million in fines, forfeits and administrative fees.
The Central Bank of The Bahamas (CBB) reports that, for FY2013/2014, the deficit narrowed by just under 15 percent to $379 million, due to a $77.1 million gain in aggregate revenue - to $1.3 billion - which overshadowed an $11.7 million increase in spending, to $1.7 billion.
In its Quarterly Economic Review for June 2014,
published October 6, CBB says the data suggests that the economy "maintained a modest growth pace during the second quarter of 2014, amid gains in tourism output and steady contributions from several foreign investment-led construction projects".
"As a consequence, the unemployment rate improved over the six months to May. Consumer price inflation firmed slightly, in response to higher global crude oil prices largely brought on by the geopolitical unrest in a number of oil-producing states."
The fiscal situation through FY2013/14 improved, as broad-based increases in revenue negated a modest rise in overall expenditures to achieve a reduction in the overall deficit. Budgetary financing was obtained from a combination of domestic and external sources, including a US$300 million external bond and internal short-term foreign currency loans.
Employment
The bank notes that employment conditions - buoyed by economic growth, however mild - improved over the six months ending May 2014. Information obtained from the Department of Statistics Labour Force Survey, shows that the jobless rate fell by 1.1 percent to 14.3 percent, a turnaround from a 2.2 percent increase in the comparable six-month period of 2013.
"The movement reflected the addition of 2,445 persons to the workforce and, as a potential sign of improving job prospects, the number of individuals categorized as discouraged workers fell by 27.9 percent to 4,880," the CBB says.
Breaking the numbers down by major labor markets, the jobless rate in New Providence dropped to 15 percent from 15.6 percent, as the number of employed persons rose by 1,515. In Grand Bahama, the jobless rate dropped to 14.7 percent, reflecting an increase in the employment count by 110.
"Unemployment among young people, those in the 15 to 24 age group, and the worst affected category, narrowed by 4.3 percentage points to 28 percent," says the bank.
Revenue
Looking at the fiscal performance of the economy in FYT2013/2014, CBB notes that the government's new fee structure led to business and professional fees of $179.9 million, due mainly to growth in receipts from general business ($46.2 million) and banks and trust licenses ($17.7 million).
A slight 1.2 percent gain in hotel occupancy taxes of nearly $4 million offsets a fairly precipitous 34.1 percent drop in gaming receipts.
The bank reports that taxes on international trade contracted by 5.5 percent ($30.6 million) to $526.7 million, amid broad-based reductions in excise ($7.2 million), import ($4.0 million) and export ($3.5 million) taxes.
Similarly, other miscellaneous taxes contracted by 3 percent ($12.4 million) to $402.0 million, mainly driven by a $20.3 million (15.5 percent) decrease in departure tax receipts and a $2.7 million (2 percent) fall in stamp taxes associated with property purchases. Meanwhile, taxes on existing property were reduced by $1.3 million (1.3 percent) and, in a modest offset, taxes yet to be classified firmed by $11.1 million (43 percent) to $37.7 million.
Non-tax income, at 13.3 percent of the total, grew by 36.8 percent ($47.6 million) to $176.9 million.
The 40.9 percent ($35.5 million) expansion in fines, forfeits and administrative fees was primarily linked to the implementation of a new customs processing fee regime, while total income receipts were higher by 30.8 percent ($12.5 million), as increased dividend payments by a local telecommunications company buoyed the $18.5 million (59.1 percent) gain in collections from other "miscellaneous" sources. In contrast, revenues from public enterprises declined by $6 million (64.1 percent), due to a falloff in inflows from the aviation sector and receipts from the sale of government property were lower by $0.4 million at $1.3 million.

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