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No New Taxes in Bahamas Budget

Lisa Ugur, Tax-news.com, London

05 June 2000

Last week Prime Minister Hubert Ingraham and Minister of Finance Sir William Allen presented the 2000/2001 budget communication at the House of Assembly. The budget turned out to be a very balanced one, with the government proposing no new taxes and no increases in existing charges in its budget, which has exceeded one billion dollars ($1b) for the fiscal year July 1, 2000 to June 30, 2001.


Allen announced that the government intends to spend $949.1 million on recurrent expenditure and $128 million on the capital side, thereby balancing the budget. The projected revenue for the fiscal period 2000/2001 is $998 million.


Allen said 'There will be no increase in government debt or to the national debt on account of this annual budget' and added that he perceived the budget as his contribution to 'putting the Bahamas on the path of sustainable growth.'.

The Bahamian government is clearly delighted with the budget which it no doubt sees as a vote-puller.

Allen called it 'a balanced budget without any new or increased taxes'. Indeed, it is balanced in terms of covering all of the government's priorities and thus sees major provisions made for education, health, the criminal justice system and social services. Provisions have also been made to increase base salaries for all public servants by $1,200 per year effective July 1, 2000.

Deducting the cost of Debt Interest and Redemption from the total recurrent expenditure in the ensuing year means that $772.2 million will be available for expenditure on essential government services, which is, according to Allen, 'the highest total in the history of the Bahamas.'.

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