What is the outlook for government expenditure?
Government spends on goods and the provision of services to meet the public needs, chief among which are education, healthcare, social protection, defense and public order and safety.
Due to the combination of declining revenue and increasing expenditures brought on by Hurricane Dorian and COVID-19, the Government had to postpone the achievement of its targets for fiscal consolidation. The Government anticipates that, as these adverse impacts lessen, the associated extraordinary spending will be significantly reduced. In the interim, the Government will continue to responsibly protect families, communities and businesses which will in turn, support and accelerate the recovery.
WHAT DOES THIS MEAN? This table shows the amount of money allocated by the Government in the upcoming fiscal year for goods and services. The majority of this spending is for services and utilies, communication, and rent.
What is the Government spending money on?
During times of economic crisis, governments play a significant role in restarting the economic engine of any economy. History has shown that during such times, reducing Government expenditure either exacerbates the economic downturn or delays the economic recovery. The measures outlined in the Accelerate Bahamas plan and the FY2021/22 budget represent targeted spending designed to accelerate the economic recovery and boost revenues. The Government is also mindful of ensuring its spending allows it to meet its obligations of fiscal transparency and accountability in its Fiscal Responsibility Act, 2018.
Click the slider for more information on the key initiatives under the Accelerate Bahamas plan and the FY2021/22 budget.
Click the image and find a full list of all tariff changes, other tax reductions and revenue movements.
The budget website is inspired by a worldwide movement towards citizens budgets. Presented by the Ministry of Finance, it is a visual, interactive and less-technical version of the annual budget that promotes accessibility, inclusion, transparency and accountability.