2019/20 Budget Communication Final Budget Communication | Page 18

In the current fiscal year, Mr. Speaker, some $398.3 million was budgeted for
subventions to our SOEs, which represents roughly 15.4 percent of budgeted recurrent expenditure.
This means that 15 cents out of every dollar spent by Government is going to provide subsidies
and support for Bahamian SOEs.
Recognizing that, over time, the trend in SOE expenditure will be unsustainable, the
Ministry of Finance is undertaking a formal study of our Bahamian SOEs with a view to providing
recommendations for cost-recovery options and for better reporting to the Government and the
public on their results and their outcomes. This study will also look for duplication of efforts
across the range of Public Corporations, Authorities, Commissions and Boards to see where it is
prudent to consolidate operations to better serve the public and meet their specific mandates.
This exercise will no doubt force some uncomfortable discussions and it may call for
some tough decisions. But, as we have proven time and again, this Administration will not bow to
political expediency, but will again demonstrate the resolve to protect the long-term interests of
The Bahamas and a prosperous future for all Bahamian citizens.
Mr. Speaker,
I want to pause for a moment to emphasize that the policy initiatives that I have
detailed, so far, reflect a Government that has adopted a new and transformative fiscal framework.
This is not business as usual and these are not cosmetic changes. The Government’s policy agenda
reflects steady progress towards comprehensive reform and structural change. We are getting at
the root of our problems within the bureaucracy. Bit by bit, we are pulling apart outdated legacy
systems across the Government to deliver true transformation. That means stability and
sustainability. That means efficiency and increased productivity.
In any country around the world, structural reforms are expected to take time. They
require cultural shifts within organizations; they require technological upgrades, training and
retooling. In The Bahamas, we are no different; we still have a long way to go with some of our
initiatives, but we are achieving measurable and meaningful progress.
vii.
Revenue Administration Reform
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