Presented by The Ministry of Finance

Prime Minister Hon. Philip Davis

The Way Forward, Budget 2022. The Prime Minister's 2022 Budget Communication, Wednesday, May 25th, 2022, at 10 AM EST.

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What's new in the Supplementary Budget?

The measures outlined in the FY2021/22 supplementary budget represent targeted spending designed to accelerate the economic recovery but also support the most vulnerable in society. The Government is also mindful of ensuring its spending allows it to meet its obligations of fiscal transparency and accountability in the Fiscal Responsibility Act, 2018.

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BUDGET BY THE NUMBERS

Government revenue has been negatively impacted by Hurricane Dorian and COVID-19. However, revenues are currently rebounding to pre-COVID levels as the global economy recovers and vaccinations increase. Similarly, domestic economic conditions are recovering due to increased tourism activity over the first nine months of the fiscal year restoring government tax and non-tax revenue collections.

$2.3 Billion

2021/22 REVENUE ESTIMATE

Government revenue is projected to increase by $464.1 million compared to the last fiscal year as the economy rebounds and returns to pre-COVID levels.

$3.2 Billion

2021/22 EXPENDITURE ESTIMATE

The government reprioritized a number of expenditures to eliminate waste, bring relief to the Bahamian people and align ministry budgets with the new government’s priorities.

$858 Million

2021/22 PROJECTED DEFICIT

Changes to the budget honor the commitments set out in the government’s “Blueprint for Change” while responding to the needs of Bahamians and restoring the country’s fiscal health.

My administration is focused on overcoming the multiple crises we face and securing a better future for all Bahamians. Ours is a message of hope. I am confident that my Government has the ingenuity, the expertise, and the determination to increase revenue, stabilize our finances, strengthen the country, and usher in a new era of economic dignity for our people."

#ABETTERBUDGET

The supplementary budget represents a new direction towards social and economic empowerment for Bahamians. 

Responding to the Need 

Tax relief will lead to economic uplift for consumers and government revenues, and help to broadly lower the cost of living in The Bahamas. Haphazard zero-rating had the unintended consequence of benefiting big businesses and the wealthiest households more. The standardizing of the VAT rate aligns with international best practices and the advice of experts. The government's new approach, using direct relief, provides the most targeted assistance to the most vulnerable. 

LIVE FROM PARLIAMENT: JUNE 8, 2020

Reprioritizing Funding 

The government has worked to identify savings thanks to an ongoing government-wide audit. The supplementary budget transfers these savings to other key areas where there is a need and reallocates funding to make the government more effective and efficient. Where poorly considered policy decisions of the past added layers to an already complex and inefficient government bureaucracy, the government is streamling and reorganizing and creating a budget to support such activities.  

LIVE FROM PARLIAMENT: JUNE 8, 2020

Restoring Fiscal Health

Restoring the nation's fiscal health is vital to respond to the needs of Bahamians and invest in policies to improve the lives of citizens now and in the future. Working and middle-class Bahamians carry a disproportionate amount of the tax burden compared to the wealthy. The government's focus is ensuring everyone pays their fair share. The government is gathering expert minds to inform fiscal policy and identify innovative ways to increase revenue and fortify fiscal management legislation. 

LIVE FROM PARLIAMENT: JUNE 8, 2020