In Wednesday's budget speech, Ingraham detailed increases in Social Service allocations, tax eliminations on food items, pay raises for public officers and teachers, and tax suspensions on fuel imports for the Bahamas Electricity Corporation.

“This budget has been crafted to take into account the international economic turbulence and uncertainty impacting so harshly on our own people,” Ingraham told Parliament.

“In particular, this Budget embraces my Government’s social philosophy, its commitment and its determination to cushion the harshness of the impact of the international turbulence upon our citizens, most particularly low income families who invariably are impacted first and most acutely," he added.

Along with its budgetary increase to the Department of Social Services in the last fiscal year, the government revealed that over a two-year period, it has increased assistance to the poor by BSD13mn.

Ingraham explained that when the government came to office just over a year ago, the allocation for the Department of Social Services was BSD26.4mn.

In the 2007/08 budget, it increased that Department’s budget allocation to BSD31.8mn, an increase of BSD5.4mn or 20.5%. Some BSD3mn of the Department’s Budget was specifically earmarked for poverty alleviation.

One year later, it has provided a further increase in the Department of Social Services' budget allocation amounting to some BSD7mn, or 22%.

“The increase in budgetary allocation for the Department of Social Services will permit meaningful increases in all areas of relief to the poor, including food, uniform, rental and burial assistance, payments in respect of foster care, the student lunch scheme and the work programme,” Ingraham explained.

“I note that the last increase in these benefits to the poor was granted in 2000 during our last term in office," he added.

In addition to increases for assistance to the poor, the 2008/2009 budget makes provision for a BSD750 raise for all public officers and a BSD1,250 raise for teachers in the public school system.

This year’s budget also addresses the cost of food items by introducing duty and stamp tax elimination on a wide range of food items.

“Having reduced the stamp tax on food items from 4% to 2% during our last stint in office we are now moving to eliminate the 2% Stamp Tax on some 160 food items,” the Prime Minister announced.

The 2008/2009 budget also provides for the elimination of import duties on a number of citrus fruits, as well as frozen vegetables, cereals, oatmeal, and breads.

Regarding the rising cost of energy in the Bahamas, Prime Minister Ingraham announced that the government in its 2008/2009 budget is granting a two-year suspension of Customs Duty of 10%, and Stamp Duty of 7% on Bahamas Electricity Corporation’s (BEC) fuel imports, as a positive measure to address the rising cost of the utility surcharge, which currently includes the 7% stamp tax.

“This is expected to enable BEC to function without further increasing the costs of electricity,” he explained.

The Prime Minister acknowledged that the tax cuts in this year’s budget, inclusive of new and significant concessions being granted to first-time homeowners, will impact revenue.

“Some of these revenue measures will admittedly result in revenue losses for the government,” he noted, “but that will be money that will stay in the pockets of consumers and homeowners and thereby provide much-needed relief in the period ahead.”