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Friday, June 23 2017 @ 06:13 AM AST

The Bahamas presents BS$2.9 billion budget for fiscal 2017/18

Deputy Prime Minister and Minister of Finance Peter Turnquest said Recurrent Expenditure for the fiscal year 2017/18 is posted at a level of BS$2,676 million, which represents an increase of BS$218 million over the BS$2,458 million outturn for 2016/17.



The Bahamas dollar is pegged 1:1 to the US dollar.

“Capital Expenditure in 2017/18 is projected at $230 million, down from the hurricane-impacted level of $310 million in 2016/17, to represent 2.5 per cent of Gross Domestic Product (GDP), which is fully in line with historical trends.”: Turnquest

“On the basis of these projected fiscal developments, the Government Finance Statistics (GFS) Deficit in 2017/18 is targeted at $323 million, or 3.5 per cent of GDP.”

He noted that while that is a marked improvement from the estimated $500 million deficit recorded this year, it is still higher than the $310 million deficit posted in 2015/16.

With an ongoing Deficit of the magnitude projected for the upcoming year, the level of the Government Direct Charge is forecast to reach $6.8 billion at the end of 2017/18, or a new all-time high of 72.7 per cent of GDP Fiscal Policy beyond 2017/18.

DPM Turnquest also explained that in the multi-year scenario, Recurrent Expenditure is projected lower by some $200 million, in each of 2018/19 and 2019/20, to levels in the area of $2,450 million.

He said this is largely due to significantly lower Debt Redemption payments each year. Capital Expenditure is projected to remain around 2.3 per cent to 2.4 per cent of GDP in the outer years, with annual levels on the order of $230 million, essentially unchanged from 2017/18.

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