"A budget should reflect the values and priorities of our nation and its people."
- Mary Landrieu

We continue and complete our review of the prime minister's communication on the national budget that he delivered on May 27, 2015, during which he expounded on his government's commitment to building a stronger Bahamas including three core priorities: "a safer Bahamas, a more prosperous Bahamas and a modern Bahamas."

In the first of this four-part series, we addressed the foundational framework upon which the budget was formulated. In part two, we reviewed the budget revenue provisions and last week we reviewed the expenditure provisions.

This week, we would like to Consider This... does this budget realistically address its stated objective of building a stronger Bahamas?

A safer Bahamas
Last week, we noted that the allocation of $126 million for the Police Force decreased by $3 million over the preceding year. This raises an important question: how, in the midst of a society that is plagued with increasing crime and the fear of crime, can any government justify a decrease in its allocation to the police?

Sadly, because the budget debate was brought to an abrupt and unscheduled termination when the government moved closure, we will not get the answers to this and other important questions about how the government intends to foster a stronger Bahamas. This was an opportunity, now lost, to inform the Bahamian people about the government's plans to create a safer Bahamas through a reduction in crime.

In addition, the government announced that $20 million would be allocated to address youth unemployment through the Urban Renewal program in order to make The Bahamas safer by employing young Bahamians. The problem with this proposal is that the government has a real credibility challenge when it comes to its Urban Renewal program because the government has failed to account for previous allocations to the Urban Renewal small homes repair program. When the Public Accounts Committee of Parliament (PAC) sought to obtain answers about alleged questionable practices of that program, the PAC's efforts were thwarted by both the co-chairs of the home improvement program and the speaker of the House of Assembly.

This certainly does not make us feel comfortable as we invest $20 million in a new initiative, to be administrated by the same Urban Renewal program. The premature closure of the budget debate also denied the people the opportunity to hear from the minister in charge of Urban Renewal as regards why we should feel at ease putting more money in their hands.

A more prosperous Bahamas
During his budget communication, the Prime Minister stressed the importance of creating an environment characterized by sound policies that would promote market confidence in The Bahamas by both domestic and foreign investors. He then listed an impressive array of foreign direct investment prospects that were in progress or being negotiated, many of which have actually been on the drawing board for years. Little was said about the other side of the investment equation, namely proposed investments by many Bahamians who have encountered one bureaucratic roadblock after another.

There are several viable Bahamian investors who have approached the government with proposals that require government approval. They have been met with delay, postponement and apathy from a government that campaigned on "putting Bahamians first." As has often been the complaint, successive governments are happy to rapidly roll out the red carpet for foreign investors, while Bahamian prospective investors and would-be Bahamian entrepreneurs are confronted with endless red tape.

Many Bahamians feel that foreign investors will be the primary recipients of a more prosperous Bahamas, while Bahamians will have to wait in the wings for their government to assist them before they can fully participate in that prosperity.

The prime minister also accentuated the need to constantly modernize our infrastructure in order to facilitate a buoyant economy. He particularly emphasized our key public utilities, including cellular liberalization and the implementation of an energy policy to address the excessively high costs associated with those operations. Because the budget debate came to an abrupt conclusion, Bahamians will not receive further details on these prospects, but will all have to wait for the government to roll out its plans on these important matters.

Bahamians will also watch very closely to observe if the government continues its unabated and unrelenting preference for foreigners to receive the lion's share of the prosperity that will result from such developments, either by enriching them with licenses or by engaging foreign consultants to advise them when there are suitably qualified Bahamians able to do the job.

Christie's legacy will be measured by the number of Bahamians his government will empower this term, as opposed to the enormous wealth that will be earned by foreigners who are able to unabashedly usurp greater ownership of the Bahamian national treasure.

Most Bahamians do not really believe that they will be primary beneficiaries, in any large numbers, of a more prosperous Bahamas. This is precisely why, increasingly, parents are admonishing their children not to return home after obtaining an education in distant lands.
The prime minister observed that a more prosperous Bahamas would require greater reform of our taxation regime, which for too long we have approached lackadaisically, both in the public and private sectors.

To that end, the government implemented value-added tax (VAT). While most Bahamians recognize the need for increased public revenue, they are not convinced that the increased revenue will be used to reduce the national debt, which was one of the primary justifications proffered by the government during its campaign promoting VAT. By its own estimates, the government is forecasting an increase in public debt in each of the three years ending June 30, 2016 through to 2018. Hence, this intuitive expectation of "anticipated government betrayal" has widened the latter's credibility gap.

There is also nothing concrete in the budget, except self-assured anticipation, to suggest that the government has any realistically tangible solutions to reverse the catastrophic rate of home foreclosures that have recently inundated Bahamians.

A stronger Bahamas
In his communication on creating a modern Bahamas, the prime minister also addressed the importance of creating a universal health care program so that Bahamians who cannot afford medical care are provided such attention by the state, a noble undertaking consistent with the inherent philosophical foundations of the Progressive Liberal Party.

As we observed last week, the Ministry of Health has the largest subvention of any Ministry in the amount of $274 million for the ensuing year, an increase of nearly $60 million, to begin the process to National Health Insurance (NHI). These funds will be administered by the Public Hospitals Authority (PHA).
While we fully support the implementation of NHI, there are fundamental concerns about how this scheme will be implemented, concerns derived from the critical audit findings regarding the PHA's management of funds and human resources.

Furthermore, the government's response to the critical conclusions of those audits has called into question whether the government is seriously addressing the concerns noted by the auditors and whether remedial action has been taken to ameliorate the audit anomalies. Much has been written about this, therefore it need not be repeated. However, the government must be cautioned that the amount of money outlined in the new budget, if placed in the wrong hands, could dramatically and disastrously scuttle the NHI program before it is launched.

Conclusion
There are significant allocations in the 2015/16 budget that the government has not adequately explained. It is wholly unfortunate that the government moved for closure of the debate in an effort to muzzle Dr. Andre Rollins, who has as equal a right to speak as any other elected member of parliament.

In seeking to silence Rollins, the government made a fundamental error. They have again invited charges of being overly sensitive and devoid of a spirit of openness and accountability, something that has often been seen in the last three years in office.

It must have been humbling and embarrassing for a three year rookie member of parliament to out-maneuver veteran politicians and senior ministers of the government.

The Bahamian people were unfortunately deprived of the opportunity to be more fully informed on important national issues by the prime minister, the deputy prime minister and the minister of national security as the budget debate was nearing completion.

In the final analysis, the government's theme of a stronger Bahamas ironically was, and will continue to be, undermined if we fail to strengthen the most important institutions of the state, in this particular case, our parliament, by failing to remember that playing politics robs our citizens of their right to hear from their leaders on what is the most important component of our future security and prosperity: how our money is to be spent.

o Philip C. Galanis is the managing partner of HLB Galanis and Co., Chartered Accountants, Forensic & Litigation Support Services. He served 15 years in Parliament. Please send your comments to pgalanis@gmail.com.

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