Key points from the 2010/2011 budget:

• Hotel room tax is being increased from 6% to 10 per cent of the room rate effective July 1;
• Stamp tax on bank transactions is being increased by 15 cents with effect from 1st July 2010
• The rate of tax on domestic production of beer will be increased from $4 to $6 per gallon. This increase will be phased in
• It's going to cost more to license vehicles to "better reflect the impact of vehicles on the Nation’s roadways and to cover the cost of street lighting, for which the Government will in future make payments to BEC."
• Aircraft parts duty is being reduced from 10 per cent to “Free”
• Subsidies to private and church affiliated schools are being reduced by 20%
• Mailboat subsidies being reduced by 10%
• Duty on computer and networking equipment being reduced from 45% to 10%
• There will be a $5 increase in departure tax
• Will aggressively pursue foreign direct investment in The Bahamas.
• Stamp tax on real property tax will be increased by 2% across the board. Does not impact first time homeowners
• Duty reductions on LED lightbulbs from 45% to 3%, sheetrock from 25% to 10% and tankless water heaters from 45% to 10% to promote energy efficiency. Small businesses with turnover of less than $250,000 will get a 2 year break from business license fees.
• Capital expenditure budget will be moderately increased over last year's budget. $265mill up from $245 last fiscal year. "Highlights Government's committment to modernising the country's infrastructure and is means of also supporting the economy at this time."
• Insurance coverage for government officials - life and medial - is unsustainable and will be reviewed.
• Public service hiring being frozen except for essential services.
• Responsibility allowances to various senior public servants - including permanent secretaries will be reduced by 50%
• Allocations to ministries and agencies will be reduced by 2.6%. PM salary reduced by 10% and MP salary by 5%. Duty to ministers reduced by 50%.
• Propose to cut deficit from $425 million to $227 million
• Significantly higher levels of revenue are required. Projected $1.492 billion for 2010/2011.
• Government debt $3.510 billion at end of 2009/2010. Amounts to 47.3% of GDP. Calls for expenditure restraint.
• Revenue collection $1.295 million in 2009 - 17.5% of GDP. This is $94 million short of what is forecast. PM said it could be more.
• Contraction of domestic economy in 2009 worse than expected and had direct impact on fiscal performance. But improved tourism performance this year and projected better performance next year and other local and global economic factors give hope.
• Speaking on the state of the Bahamian economy, Prime Minister Ingraham said the economy contracted by 4.3% in 2009; with economic downturn unemployment rate rose to 14.2% in 2009; and tourism sector shrank in 2009.
• Budget aim is to contain debt to GDP ratio immediately
• Prime Minister Hubert Ingraham and his team have just crossed Rawson Square to Parliament for the budget debate. State Minister for Finance Zhivargo Laing carried the traditional red briefcase holding the budget.

See full Budget Communication here