Tax reforms and fiscal accountability

Fri, Jan 23rd 2015, 09:32 PM

Dear Editor,

Well, those of you who are reading this contribution to national dialogue are to be congratulated in that we would have arrived safely into 2015. We in this wonderful nation have much to be thankful for. Yes, the economy is picking up a bit slower that some of us would like but we are still doing a whole lot better, economically, than all other countries in this region save for the great U.S.A. and Canada. It is also to be conceded that we have ongoing challenges with our educational and health care facilities but, again, we are far ahead of all countries in the Caribbean and, indeed, even some European nations.

Our literacy rate hovers above 60 percent even if the celebrated national grade average is a D. Education straight through high school is still free and is accessible to all who reside within The Bahamas, regardless of nationality. Our infrastructure in New Providence has been greatly enhanced thanks to the road works done under the last Ingraham administration, even if there were massive costs overruns. Potable water in New Providence and many of the Family Islands remains a debilitating challenge.

Our tourism product is in a mediocre state and it must be addressed now. With the proposed improvement of relations between the U.S.A. and Cuba, the handwriting is on the wall for the sustainability and relevancy of our tourism industry, despite the false optimism of many. The opening of Cuba could result in a dramatic decline in our tourist arrivals based on the mystical allure of that nation.

On balance, however, I am more than convinced that 2015 will be a banner year for our nation if we strive to ensure real tax reforms and demand fiscal accountability from our political directorate, across the board. Our national debt is pegged in excess of $6 billion. The annual deficit is rumored to be around $500 million per year and counting.

More revenue is needed to deal with both of these but our leaders have to demonstrate that they are able to work within a balanced budget and account for every cent spent on our behalf. It is alleged that some $500 to $700 million is owed in outstanding Real Property taxes. What is the plan, if any, to recover these monies?

Millions of drugs allegedly have gone missing from within our public health care system and an audit was done but nothing further has been heard or revealed about this. Why? Ministers make frequent trips abroad with large delegations at the public expense but we are told absolutely nothing. What are the results of these trips?

The civil service and government corporations are used as political tools by all administrations to secure support and/or to provide jobs for colleagues. As it stands now, over 65 percent of all governmental revenues are used to pay the wages and salaries of these people. Add wastage and cronyism to this and we have a toxic financial situation.

I invited this government, which I basically support, to let us get on with the business of the people but we must demand real tax reforms and certainly fiscal responsibility and accountability. Tax reforms should be real and designed to encourage private sector growth and revitalization.

The long awaited Freedom of information Act must be brought into force. I doubt, however, that the enactment of that legislation will do much, if anything, to encourage our political leaders and senior civil servants to be more accountable to the people.

The year 2015 is here and there is much work for all of us to do. Serious allegations of bribery and corruption have, traditionally, been made but in the absence of credible proof, the beat will continue to go on. In the meantime, however, let us call for real tax reforms, economic stimuli and fiscal accountability. Happy New Year and, in all things, to God be the glory!

- Ortland H. Bodie Jr.

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