NASSAU, The Bahamas — The Bahamas’ projected GFS deficit in the 2012/2013 fiscal year is $550 million or 6.5 per cent of GDP, Prime Minister Perry Gladstone Christie announced during his presentation of the 2012/2013 Budget Communication in Parliament, Wednesday, May 30.
The Government Debt is forecast to stand at $4.607 billion or 54.5 per cent of GDP, at the end of the upcoming fiscal year, the Prime Minister said.
“With this level of debt, our debt service requirement in 2012/13, including both debt redemption and interest payments, will amount to some $328 million, or just over 18 per cent of our total Recurrent Expenditure.”
He said in light of the fiscal reality that the country is facing, the Government is holding the line on Recurrent Expenditure in 2012/13 to the maximum extent possible.
“Recurrent expenditure in the current fiscal is projected at $1,821 million, as compared to the projected outturn of 1,707 million this year.
“That is an increase of $114 million, fully $55 million of which is allocated to the increased requirements for debt redemption in the coming period,” Prime Minister Christie said.
The Government has also projected Recurrent Revenues in a prudent fashion, forecasting that they will come in at 18.3 per cent of GDP, he added.
“This represents a slight improvement in performance from 2011/12 and reflects the early results of some of the revenue reforms outlined earlier, specifically in respect of excise tax and real property tax reform. As such, we expect Recurrent Revenues of $1,550 million in 2012/13, up from 1,450 million last year,” the Prime Minister said.
By Llonella Gilbert
Bahamas Information Services
