Laing: Budget Prepares For The Future
By Kendea Jones:
More than a month after the Ingraham administration presented its 2010/2011 Budget, State Minister for Finance Zhivargo Laing is still fighting off a firestorm of criticisms, claiming that the government made the best move for the country. The new fiscal plan, which takes effect on Thursday, has a rash of cuts and tax increases.
For instance, come July 1, the government will introduce a 65 per cent rate for cars that are 2,000 ccs or fewer, a 75 per cent rate for cars between 2,000 and 2,500 and an 85 per cent rate for all other cars, except hybrids, which face the lower duty of 25 per cent.
According to Prime Minister Hubert Ingraham, this allows many fuel-efficient, four-cylinder vehicles to be covered under a rate of duty that is mid-way between the low and high rates.
"I think there were some adjustments made for the timing of when the cars will come in and some provisions made for persons who would have imported vehicles between the 26th June and July 1 when those rates take effect," Minister Laing explained.
"Commercial credits will be granted to auto dealers and a refund to individuals who would have imported vehicles during that period."
But according to the state minister, not only did the government present a budget that would sustain the country for the next 12 months but beyond that timeframe.
"The reality is that we presented the budget we did so that we could put ourselves in a position where we could cope with a crisis if it occurs," he said.
"We didn’t want to grow the debt in the midst of the crisis. So, we are looking to claw back some of the damage and put ourselves in the position that if a hurricane damages The Bahamas, we would be able to respond. If there is a crisis we would be able to do what is necessary to respond to it."
Minister Laing also again dispelled the notion that the government is broke as "ludicrous."
"The government couldn’t pay salaries if it did not have money. This is a question of putting the fiscal house in the position that you are able to operate in a sustainable manner; meaning that you are not doing something that is going to cause you to be unable to maneuver," he said.
"We are not doing something that is going to cause such a heavy load on future generations. The government is not going to spend widely today, as if there is no tomorrow. Anything can happen tomorrow."
The 2010/2011 Budget allocates some $1.55 billion for recurrent expenditure and more than $265 million for capital expenditure.
Government debt at the end of June 2011 is projected to stand at 49.2 percent of GDP, up from 47.3 percent a year earlier.
June 30th, 2010
jonesbahamas
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
