On the heels of the new Free National Movement (FNM) government announcing it would have to borrow $722 million, outgoing Chairman of the Bahamas Chamber of Commerce and Employers' Confederation (BCCEC) Gowon Bowe said borrowing could come to a point of "no return".
Speaking at a press conference, Bowe asserted the need for clarification on expenditure commitments made under the previous Christie administration that were not disclosed in the mid-year budget communication.
Bowe did not disclose an amount that would trigger a point of no return, but he explained, from a business perspective, that "harsh decisions" have to be made.
In March, former Prime Minister Perry Christie said the country's deficit was projected to land at $350 million by the end of the current budget period.
Minister of Finance Peter Turnquest revealed in the budget communication that the deficit would land at $500 million instead.
Therefore, Bowe raised questions about what led to the gap between the two deficit projections.
"What is critical is to analyze what contributed to that," said Bowe.
"In reality, these are our public finances.
"We should have an understanding of what expenditure commitments were not seen just two months ago when the mid-year budget was done.
"What would have contributed between $350 and $500 million?"
Bowe made it clear that reducing the national debt would not be an easy task, highlighting that The Bahamas is "bound by external factors".
"We always say we want to reduce the debt.
"We often look at government very different from our personal lives and business lives.
"There is a point and time where we borrow to a point where there is no return, and we have to be very careful we don't hit that.
"We, as a small country, are not like the U.S. to continue to accumulate debt and then print money.
"We are bound by the external factors.
"We have to demonstrate that our information is credible firstly, our policies and strategies are going in the right direction, and that we implement effectively."
The government's ability to reduce the national debt is also hinged on economic growth, according to Bowe.
"It is difficult on a government, because reduction in their payroll and staff component just shifts persons from employed to unemployed," he said.
He explained that there has to be a balance in building the economy where any reduction in the size of the government could be absorbed in the private sector.
This move should be done in a strategic manner so that there is not a "shift in the expenses from one pocket to the next," said Bowe.

Click here to read more at The Nassau Guardian