Opposition urges Davis administration to curtail unnecessary spending
NASSAU, BAHAMAS — Revenue collection for the fiscal year 2022/2023 saw an almost 10 percent increase to reach approximately $2.85 billion, according to the government's budgetary performance review, with the Opposition urging the government to curtail unnecessary spending.
The findings were contained in the recently released budgetary performance for the fiscal year 2022/2023 from the Ministry of Finance. It noted that revenue collection for the year totaled $2,855.8 million, surpassing the prior year by $246.5 million (9.4 percent), equating to 99.9 percent of the budget. Tax revenue receipts grew $312.0 million (14.4 percent) to $2,474.1 million, accounting for 97.5 percent of the budget.
The report also revealed that during the twelve months end-June for the fiscal year 2022/23, total recurrent expenditure increased by $18.9 million (0.6 percent) to $3,061.8 million compared to the same period in the prior year—representing 99.6 percent of the targeted spend.
Compensation of employees increased by $68 million (9.2 percent) to $805.2 million and represented 97.3 percent of the budget target. "The increase in the public-sector wage bill reflects staff promotions, salary adjustments, and additional hires for staffing needs in new and existing government Ministries and agencies," the report stated.
Opposition Shadow Finance Minister Kwasi Thompson expressed concern over this figure, stating: "Has the government properly factored in the impact of this elevated spending and made adjustments elsewhere in its discretionary spending to compensate?
"The Government also needs to explain how much of this amounts to new employees. The Government seems content to bloat the public service without restraint. If the employees increased why did the payments in insurance premiums decrease by 55M, and have these insurance premium payments just been pushed into what is the current fiscal year? How much arrears from the last fiscal year got pushed into this fiscal year?"
Thompson also expressed concern over rental costs, which increased by $22.4 million (26.7 percent) to $105.9 million. According to the report, this increase mostly comprised payments for office leases and rent, vehicle leases, and living accommodations.
The report also indicated that VAT receipts improved by $116.2 million (10.2 percent) to $1,252.0 million, for 88.7 percent of the budget target.
Regarding this development, Thompon said: "While it is welcome news that the country collected 99.9 percent of the revenue expected in the Budget, we are still concerned that the VAT collected did not meet the expected targets. Given the reliance on a major jump in VAT revenue in this year's budget, the Government must explain what effect last year's VAT underperformance will have on the projections for this current year. In addition, what does this mean for the economy moving forward?"
He further stated: "The Government again increased travel spending by over $6 million (over 50 percent). "We again call upon the Government to curtail unnecessary spending, especially on unnecessary travel. At the same time, they have decreased spending on social benefit payments by $58.4 million (20.4 percent) and expenditure on social protection declined by $28.8 million (11.2 percent).
"We continue to demand that the Government increase social assistance to assist Bahamians in dealing with the high cost of living."
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