Economic and financial analysts and experts have characterized the 2021/2022 budget, presented by Prime Minister and Minister of Finance Dr. Hubert Minnis in the House of Assembly a week ago, in mixed tones – from safe and predictable, to unrealistic and lacking in vision.

“If you were rating it as a baseball hit, at best it might be a double, or likely a single, but it sure will not be regarded in my mind by anybody as a home run,” said former Minister of State for Finance Zhivargo Laing, who analyzed the budget on his Guardian Radio show “Z Live” over the last several days.

“What will matter more than anything is how it translates in actual effect.”

In the coming fiscal year, which commences July 1, the deficit is projected at $951.8 million, 7.7 percent of GDP.

The government projects to take in $1.8 billion in proceeds from borrowing. 

In the first nine months of the 2020/2021 fiscal year, the government borrowed $2.1 billion as compared to $530.9 million over the same period a year prior.

Government debt is projected to rise to $10.3 billion in 2021/2022.

This is a chilling and sobering reality, especially in light of the fact that the Minnis administration has yet to outline a debt management strategy.

“In the short term, the only option is to borrow,” said Gregory Bethel, Fidelity Bank (Bahamas) president, in an interview with National Review.

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