2019/20 Budget Communication Final Budget Communication | Page 46

Trade Sector facility with the IDB, the Ministry of Finance has contracted a consultant to review
the current concessionary regime in The Bahamas to provide input on how these concessions
impact economic growth, and how this translates into our fiscal policy needs, given the
requirements of our fiscal responsibility legislation. This engagement began in January of this
year, and is still in the information gathering stage. However, when contemplating policy action,
it is imperative to consider the impact foreign direct investment has on the domestic economy—
not just for tourism but in the monetary sector as well—and how changes to our current
concessionary regime may affect that.
Nonetheless, while this Administration is not opposed to the concept of concessions to
drive and foster positive investment in The Bahamas, we must undertake the proper study and
analysis to ensure that the concessionary regime is fit for purpose — and that it actually drives the
right kinds of investment. We must measure the tenure and scope of these concessions—their
investment impact, so that we are not simply giving away freebies that add no value to The
Bahamas and its citizens.
IX.
Fiscal Prospects for 2019/20 and Beyond
Mr. Speaker,
I will now highlight the key fiscal prospects for the coming budget year, and future
prospects for the medium term horizon.
Our estimates for the 2019/20 Budget are framed within the projected outcomes of the
2018/19 fiscal year and the current and projected economic climate. Although the economy is
expanding, the reality is that recovery is not occurring at the pace previously projected, against the
backdrop of a number of global factors.
We are fully sensitive to the fact that a further improvement in our fiscal outcomes,
and the attainment of the legally binding fiscal objectives, is contingent on both ongoing
expenditure discipline and the further enhancement of revenues.
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