2019/20 Budget Communication Final Budget Communication | Page 33

than budgeted. Capital expenditure, at $147.6 million, was $55.5 million or 27.3 percent lower over the ten months to April 2018 when compared to the comparable period of the previous year. All told, we project that the remaining two months of the fiscal year will perform positively. For the fiscal year as a whole, revenue is estimated to come in at about $2.4 billion, some $238 million or 9.0 percent lower than what was budgeted at the start of the fiscal year, largely on account of the new agreement with the gaming operators, the delayed implementation of the Revenue Enhancement Unit (REU), and the concessions granted to hotels and contractors in respect of the introduction of the higher rate of VAT. On the expenditure front, total outlays are projected to equal approximately $2.6 billion, which is also some 9.0 percent or $259.1 million below the amount initially budgeted for the year. Of this total, approximately $172.3 million is anticipated to be settled in respect of arrears, in line with the Budget projection. Based on these developments, we therefore anticipate the fiscal deficit to total some $229 million in 2018/19, representing 1.8 percent of GDP; that will be broadly in line with the $237.6 million deficit projected in the last Budget. These developments clearly signal that this Government is focused on more than merely talking about our plan to govern this country in the right manner, but also on action. Bringing our plans to fruition and realizing the goals that we set forth for fiscal reform are critical priorities for us, as they underpin and, in time, will incubate our broader economic objectives of inclusive growth, a sustainable and resilient economy, and increased productivity. The outcome is a sustainable improvement in the well-being of all Bahamian citizens. VII. Fiscal Measures in This Budget Mr. Speaker, The increasing disparity between the needs of our nation and the resources available to meet them makes revenue enhancement imperative to meeting the objectives of any government. While we have demonstrated great discipline in expenditure restraint, strengthening our revenue flows from existing taxes remains a key priority for this Administration, as well. In strategizing 32