Mr. Speaker,

It is my honour to present the 2018/19 mid-year budget statement, as mandated by the Financial Administration and Audit Act, as well as the Fiscal Responsibility Act, 2018.

This statement gives a provisional account of fiscal developments during the first half of the 2018/19 financial year; an update on the progress of the initiatives set out in the 2018/19 budget communication; and the outlook for the remainder of the fiscal year.

In May of last year, this Government presented a landmark Budget that is centered on ending the past practice of artificially under budgeting and over spending, and instead applying sound fiscal management strategies to the use of the nation’s public financial resources.

In fact, the past practice of unrealistic and flat out reckless budgeting had resulted in a buildup of arrears to the tune of $360 million. Settling these old bills once and for all was also a focal objective of the 2018/19 Budget.

The transformative 2018/19 Budget set the tone for enhanced and more effective accountability, transparency and responsibility, as it adopted the framework for responsible fiscal management set out in the Fiscal Responsibility Act, even before it was enacted last October.

This framework, with its legally binding objectives and fiscal targets, establishes a new standard for fiscal management, performance, and reporting.

No longer will government be allowed to mismanage taxpayer dollars for indefinite periods without having to report to the people in writing.

Instead, Bahamians, as they should, will be informed regarding the decisions made about their hard earned dollars, so that they become and remain aware of what the parliamentary custodians of their affairs are doing with their money.

Finally, the People’s Budget established a sound and credible plan for addressing the needs of the current fiscal period and, as documented in the inaugural Fiscal Strategy Report that was laid before the House last November, a strategy for securing favorable outcomes in the deficit-to-GDP and debt-to-GDP ratios for the next three years. Since the Budget Communication, we have made noteworthy progress in realizing the goals set out for the full fiscal year.

Specifically, the Fiscal Responsibility Act has been enacted, and the first ever Fiscal Strategy Report has been published and debated in Parliament.

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