The drama that defined the mid-year budget debate is still fresh in the minds of many, and the invaluable lessons learned from that debacle will hopefully not be forgotten in a hurry. The Bahamian people are hopeful that the shenanigans and demagoguery will cease, if only for a while, to allow for renewed focus on the issues that matter the most to our Commonwealth. While the enigma of the duo "Toggie and Bobo" still confounds many, it is now time to move on to the people's business and the hour of accountability and transparency is upon us.
The government is expected to give an account of its stewardship of the people's funds and provide a roadmap for the future of the Bahamian economy. We are moments away from the final budget presentation of the second non-consecutive term of the Christie administration. Cabinet ministers are expected to lay clearly on the table how they have managed their portfolios in the interest of the Bahamian people. It is further anticipated that members of Parliament (MPs) and senators will contribute sensibly and constructively to the budget debate; they owe that much to our country in general and their constituents in particular. There is no doubt that all eyes will be on the Parliament of The Bahamas in the days ahead.
A performance appraisal
The annual budget debate in Parliament can be likened to a typical performance appraisal that takes place in the corporate world. It is perhaps more appropriate to use the private sector version of this important exercise as a point of reference because the challenges within our public sector make it inappropriate to use the civil service as the ideal benchmark. In order to put this in context, the employers must be clearly identified as the Bahamian people who have entrusted the governing party with oversight of our financial affairs. The employees under review are the MPs who have assigned portfolios to oversee.
The budget debate exercise is an invitation to the government to step into the office of the people to tell us what they have done or not done and why. Due to the logistics and nature of our system of governance, the MPs/employees will have to put forward their cases and defend their positions on national television under the prying eyes of the Bahamian public. The prospective employees who are members of the Official Opposition and rival political parties will also have their day to speak on the performance of the current management team employed by the people. It goes without saying that the activities and financial stewardship of the governing party over the past fiscal year will be weighed in the balance.
Analyzing the numbers
A key component of the imminent discussion of our nation's finances is the examination of the numbers and key financial trends. While the economic challenges we face are obvious for all to see, we should get an opportunity to review the actual figures on the expenditure and revenues of the government. Taxpayers will be patiently waiting to ascertain how the additional revenue generated from value-added tax (VAT) has been put to use. We will expect updates on the GFS deficit, national debt, capital and current expenditure.
There will be much demand for details on the government's progress in the implementation of its fiscal consolidation plan. The state of the economy over the past 12 months and key macroeconomic indicators will be the focal point as we try to paint a picture of the year that was. External onlookers such as the International Monetary Fund (IMF), ratings agencies as well as current and potential investors will be keen listeners to all that has transpired during the fiscal year.
A crucial budget
The 2016/17 budget is expected to be the last budget under the current term of the Progressive Liberal Party (PLP). This budget will take us as a nation into the next general election at which time all positions will become vacant again and there will be interviews for MP positions. It is therefore an understatement to suggest that this may be the most important budget for the current administration. When we consider the current state of affairs within our country and the quiet revolution in which we find ourselves, the significance of this budget becomes more pronounced.
As we have seen in times past, the budget before an election is often loaded with items that are designed to lure voters to the governing party and win the hearts of the electorate in favor of the government. While this may not be bad in and of itself, it becomes dangerous when incentives are introduced into the budget to the detriment of the country. The Bahamas is arguably between the proverbial rock and a hard place when it comes to our economy and financial affairs. We are no doubt on a slippery and delicate slope at a time of significant challenges for our country from social, economic and spiritual perspectives.
Matters arising
In light of recent reports in the news media, there is much hype around the prime minister's communication on Baha Mar. There have been many assertions made, rumors and stories on the future of the mega-resort that many believe is too big to fail. The government's announcement on this development and plans for its future will probably emerge as the biggest news from the budget debate. Proposed plans for fighting crime and the effectiveness of existing strategies are expected, seeing that there wasn't much discussion on this in the mid-year budget debate.
The business community will also be looking forward to plans to grow the economy and address the declining financial services sector. This should fit into an overarching strategy to building our small and medium-size enterprises (SME) sector and reduce unemployment, which is extremely high among the youth. It is also fitting that an update is provided to the country on the disbursements made to CLICO policyholders and future plans for the entity. The Bahamas Agricultural and Marine Science Institute (BAMSI) is an important part of our national voyage and our quest for food security; hence, a progress report on this initiative will be in order.
The testing of courage and ability
There are few among us who will deny that we are in a period of much despair and faintheartedness among the populace in general and the young people in particular. The government is hard-pressed to inspire the downtrodden and make the Bahamian people hope again despite the dark cloud that hangs over our archipelago. While the government is obviously trying to find ways of stimulating the economy, this is not happening fast enough for many.
The faith, ability and courage of the current administration will be tested in the upcoming budget debate; not by politicians, but by the people of this nation. The will of the current administration to proceed with its fiscal reform agenda, containing expenditure and spurring economic growth will be put under pressure in a country with high unemployment. The prevention of any further downgrade of our sovereign rating based on a perceived or anticipated deterioration of our finances will need to be balanced against the urgent need for comprehensive healthcare reform. Energy reform and the overhaul of government-owned entities will also be challenged by the potential impact on employment and consumers.
The menace of crime and its impact on our tourism product as well as the local economic activity will be pitched against strategies to make our communities safer. Will they yield to the temptation to focus on the next election instead of the next generation? Will their courage fail when they are called upon to exercise financial discipline and prudence? Will this budget be a typical election year budget or is change on the horizon? Will the modernization, public engagement, transparency and good governance touted by the government be evident in the budget communication? Only time will tell.
Redemption song
Our political leaders will be called upon again in a short while to speak to the pertinent issues that affect our lives and in some cases threaten the future of our Bahamaland. A number of MPs will have an opportunity to redeem themselves after dismal performances at the mid-year budget rehearsal. The Bahamian people sure hope that they will not besubject to theatrics and a display of dishonor by our elected officials.
The president of the Senate and the speaker of the House of Assembly will be called upon to discharge their duties with excellence as they maintain order in the houses of Parliament. The use of parliamentary privilege and the need to protect the constitutional rights and civil liberties of private individuals will be watched closely by both locals and foreign entities.
o Arinthia S. Komolafe is an attorney-at-law. Comments on this article can be directed to a.s.komolafe510@gmail.com.
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