Progressive Liberal Party (PLP) Chairman Bradley Roberts revealed yesterday while on a talk show that the Christie administration has met a budget deficit of around $500 million. It was expected that the deficit would be around $314 million.
Deputy Prime Minister Philip Brave Davis confirmed the figure when he spoke to The Nassau Guardian yesterday. Davis blamed the Free National Movement (FNM) government's "mismanagement" and "abuse" of the public purse.
The FNM argued that it spent to keep the economy afloat during these tough economic times and that when it was in power it invested in infrastructure to prepare The Bahamas to take advantage of the economic recovery to come.
The new reality of the debt situation faced by the PLP administration will make closing the deficit even more of a priority than the party thought when it was on the campaign trail. This large deficit should also make the governing party and the citizenry aware that some of what was promised by the party my have to be delayed.
When reasonable political parties put together manifestos before elections they should do so based on the perceived economic conditions of the times. If elected, and the times remain as assumed, then the party should follow through on what was promised. However, when conditions are significantly worse than projected by the party, a reasonable group should go back to the table of consideration and determine how responsibly to carry out the party's agenda with fewer resources than expected.
It would be foolhardy and irresponsible for an administration to spend like it is in good times when it is not. Such behavior would make the country's fiscal situation worse.
Greece is in a depression because of the poor management of its affairs by successive governments. Other European countries are facing bankruptcy for the same reason. For these countries, they are at the beginning of a lost decade during which the quality of the lives of their peoples will be much worse than it was a decade before.
Davis added that the Christie administration will likely have to borrow a little over $500 million in the 2012/2013 fiscal year as a result of the previous administration's spending. We wonder if the full scope of the New Providence roadwork borrowing is factored into that $500 million figure. If not, it will increase.
The Bahamian economy has had a rough few years. In 2007 the unemployment rate was 8.7 percent. In 2008, the year of the financial crisis, the jobless rate rose to 14.2 percent. Unemployment was last measured at 15.9 percent.
The Bahamian people must realize that the government's primary responsibility now is to create an environment for investment and job creation, and to control government spending and manage our national debt situation. Politicians should be discouraged from wasteful spending.
We are now hearing dribs and drabs of information on the country's fiscal situation from various politicians. It will be interesting to listen to the minister of finance present the full situation in a few weeks during the budget communication. Bahamians should listen carefully and come to terms with what the new administration can reasonably do as our borrowing capacity lessens due to the significant amounts borrowed since 2008.

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