The government has tabled long-promised legislation to repeal and replace the Fiscal Responsibility Act, 2018 and Public Finance Management Act, 2021.

Passed under the Minnis administration, the Fiscal Responsibility Act, Public Procurement Act, Public Finance Management Act, Debt Management Act and Statistics Act were aimed at providing greater accountability through regular fiscal accounting.

However, shortly after gaining governance - and amid criticism by the opposition that his administration was failing to operate in accordance to the laws - Prime Minister Philip Davis called the bills flawed, adding that the public servants required to carry out the tasks stipulated in the bills have not been trained or appointed.

The Public Finance Management Bill, 2023 will repeal and replace the Public Finance Management Act, 2021; repeal the Fiscal Responsibility Act, 2018; and sections of the Financial Administration and Audit Act.

However, it would incorporate material provisions of those repealed acts into a consolidated finance and fiscal responsibility framework, the 108-page bill tabled in the House of Assembly on Wednesday stated.

"Sections 19, 20 and 21 contain the repealed provisions of the Fiscal Responsibility Act, 2018; setting the general principles for responsible fiscal management, the fiscal responsibility principles and providing for the government to set fiscal objectives in a manner consistent with the foregoing. Sections 22 and 23 have been inserted from the repealed Fiscal Responsibility Act, 2018 with certain amendments thereto to provide for a more streamlined process for the preparation and publication of the fiscal strategy report and the pre-election economic and fiscal update," the bill states.

"Section 25 allows for temporary deviations from the fiscal objectives provided that if the deviation has not been cured before either the mid-term budget or annual budget, the measures the government intends to take to return to compliance with fiscal objectives.

"Sections 28 and 29 provide administrative support to the Fiscal Responsibility Council to ensure that the functions can be carried out efficiently and effectively. The Fiscal Responsibility Council is now empowered to request information necessary to carry out their duties and produce reports."

Speaking to the bill as it was tabled in Parliament on Wednesday, Davis said with this new framework the Ministry of Finance is now well on its way to achieving full compliance.

"Once enacted, this bill will repeal the Fiscal Responsibility Act and the existing Public Finance Management Act. The compendium of legislation which comprised the Public Procurement Act, the Public Finance Management Act, Public Debt Management Act and the Fiscal Responsibility Act reflected a government on autopilot. None of the legislation reflects the situation which actually exists within The Bahamas, and their provisions severely hampered the legitimate operations of the government," he said.

"This is yet again an example of the incompetence which preceded us. Madam Speaker, there is no shame in borrowing ideas, concepts and even language in the drafting process. However, those in leadership have the responsibility to ensure that what is being adopted, reflects the Bahamian reality. That was not done, and so it was that in September 2021, the Ministry of Finance was not equipped to comply with the new legislation. The required information systems were outdated or completely lacking."

The Fiscal Responsibility Act was implemented in 2018, while the others went into effect in July 2021, just months ahead of the September general elections.

The prime minister has argued that in their current form, the current bills have serious impediments and do not reflect the views and realities of the people who must operate under the legislation.

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