2020/21 Budget Communication 2020-21 Budget Communication - Final (1)-compresse | Page 10

Mr. Speaker, we can also look with pride and confidence at the entrepreneurial spirit of Bahamians,
and the way small businesses have sprung into action. With shifts in manufacturing, the adoption
of digital platforms and the growth of delivery services, Bahamians entrepreneurs are innovating
to meet the new demands for products and services during this lockdown. Our values as an
Administration dictate that we take action to reinforce this entrepreneurial spirit, and this Budget
does just that.
iv.
Fiscal Performance in FY2019/20
Mr. Speaker,
Now that the macroeconomic context has been set, I want to take this time to update this Honorable
House and the Bahamian people on performance for the 2019/20 fiscal year.
At the time of the 2019/20 National Budget, I mentioned that this Administration had envisioned
our approved budgetary operations resulting in a fiscal deficit of approximately $137 million, or
1.0 percent of GDP. After accomplishing a 67 percent reduction in the deficit since assuming
Office, we were indeed well on our way to achieving our established fiscal targets in our steady
move toward a balanced budget.
However, Hurricane Dorian swept through this nation only two months into the Budget year and
quickly derailed the approved estimates, which resulted in the tabling and approval of the
Supplementary Budget.
Mr. Speaker,
Up to the nine month mark—the latest published and available monthly data—we were performing
on target with the Supplementary Budget estimates, underpinned by what had proven to be a strong
revenue performance and the roll out of a number of hurricane recovery and restoration measures.
Given the robust level of economic activity in the first half of the fiscal year, despite the September
storm, overall performance for the nine months to March 2020 was relatively buoyant.
Total revenue grew by $68.9 million, or 4.1 percent to $1.7 billion over the nine-month period—
representing 73.4 percent of the budget—as compared to the same period of FY2018/19.
Mr. Speaker,
On the expenditure front, recurrent expenses moved higher by $112.7 million or 6.6 percent to
$1.8 billion in the nine months to March 2020—equating to 67.5 percent of the Budget—being
boosted by a union lump sum payment-led $47.9 million, or 9.1 percent increase in compensation
to employees. Recurrent expenses related specifically to Hurricane Dorian amounted to $14.1
million for the nine month period, including $7.9 million in allowances to displaced civil servants,
$2.7 million toward landfill operations, and $0.5 million in food assistance. Further, the
Government paid an additional $48.4 million in FY2019/20 in arrears payments as at April 2020—
just below 50 percent of the budgeted amount, bringing the total paid off since the beginning of
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