The mid-year budget

Mon, Feb 27th 2023, 07:52 AM

Notwithstanding a still-unjustifiably increasing fiscal deficit, Prime Minister and Minister of Finance Philip Davis announced that his government's economic policies of reducing value-added tax (VAT) across the board and expanding the price control lists of breadbasket foods and medicines are working.

These, together with a resurgent tourism sector, he claimed, account for increased government revenue.

He neglected to acknowledge that his imposition of 10 percent VAT on previously VAT-exempt breadbasket items negatively impacts the poor or that his new intention to impose VAT on medical bills for the privately insured will harm the middle class.

There is a serious disconnect between the world in which the prime minister lives and the reality of ordinary Bahamians who are being squeezed financially.

Many people who can barely make payments on their homes' mortgages, pay school fees, and medical bills, are being squeezed by increased real property taxes, for example. And on the instruction of the government, these taxes are now being added to mortgage payments by lending institutions.

The prime minister also appears disconnected to the reality of his own minister responsible for social services, Obie Wilchcombe, who reports an increase in the number of families requiring assistance.

Indeed, the government's proposed increase in the allocation to that department by 10 percent is an acknowledgement that the poor, including the new working poor, are unable to meet the still-rising cost of living adding to food insecurity for thousands of Bahamian families.

And this at a time when, despite inflation and increased government taxes, wages in the country remain stagnant.

Now that major pandemic-related expenditures are no longer necessary, it is reasonable for the public to expect that government expenditures will reflect that.

And with rising revenue, the public may also reasonably expect that government services will improve, or at a minimum, return to pre-pandemic levels.

Instead, morale in the public service is low and government services are generally unsatisfactory.

Routine services take an inordinate amount of time, no one appears to be in charge and it is difficult to have any query answered in a timely fashion.

Delays continue to be experienced whether obtaining police character references, renewing business licenses, VAT stamping and/or recording deeds and documents, and obtaining immigration status, whether work permits, permanent resident status or citizenship.

Meanwhile, the prime minister, who is immune to criticism of his and his colleagues' frequent travel, was once again out of the country over the weekend with a sizable entourage.

Tellingly, the mid-year budget provides for a further increase in the government's travel budget.

We recommend to the government that it devote its energy to improving the delivery of services to the public and in these times of increasing revenue, reduce our fiscal deficit.


Crime carnage continues

Three individuals were injured in three separate shootings late last week. Shockingly, two of the victims were children, ages 10 and 15.

Far too many grownups in our communities have become accustomed to leaving children to mind themselves.

Inexplicably, the 10-year-old victim of last Friday night's shooting is reported to have been attacked shortly after 1 a.m. while returning home from a trip to purchase food; a preposterous hour for a 10-year-old to be on the street.

The description of the second gun-involved incident, which left a 15-year-old in hospital, had a disturbing familiarity to other reported shootings.

And the third incident belies statistics that tell us that crime is decreasing.

A man visiting family was first involuntarily relieved of his motor scooter, then, adding insult to injury, was gratuitously shot by the escaping thieves.

It is axiomatic, programs by governments, schools, churches and community action groups must be retooled to meet the challenge of the growing number of unsocialized individuals in the community.

The post The mid-year budget appeared first on The Nassau Guardian.

The post The mid-year budget appeared first on The Nassau Guardian.

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