2020/21 Budget Communication 2020-21 Budget Communication - Final (1)-compresse | Page 14

As you can see, we are not sugar coating the severity of the situation we find ourselves in today,
and the important role this Budget will play.
Impact on Expenditure
Mr. Speaker,
Now, on the expenditure side. We carefully considered our expenditure options, and ultimately
designed the ‘Resilient Bahamas’ Plan in the way we have for the following reasons:
1. We had to consider the fact that the public health threat is not behind us, and that future
public health emergencies could spring up at any time. Global pandemics present an
existential threat to the health and safety of Bahamians, and we believe that improving
our national resiliency in the public health sector is a spending priority that cannot
be delayed because the health of our people is paramount.
○ In our plan, we increase the public health allocations specific to the COVID-19
response by $20 million.
2. Dramatic cuts in Government spending could result in a further contraction of the economy
when it is already in a weakened state. We understand the role of government in a crisis
and maintain that the Government’s ongoing contribution to commercial activity
right now is a lifeline.
○ In our plan, we made a conscious decision not to curtail spending in certain
important areas like education, and to allocate targeted increases for capital
expenditure projects, small business development and social welfare spending. The
allocation for the Department of Social Services’ budget, for example, will increase
from $49 million to just over $60 million in FY2020/21.
3. The spike in unemployment across the world has left millions of people without their
primary source of income. In The Bahamas, this has created hardship in our communities.
More than 55,000 people have already filed for unemployment benefits and assistance with
the National Insurance Board, representing over 30 percent of our workforce.
○ This Administration stands for the dignity of work. Our bond with citizens is
defined by partnership, not paternalism. Therefore, in our plan, we allocate over
$120 million to continue and expand the Tax Credit/Tax Deferral program to
provide cash directly to businesses to fund their payroll expenses to help keep
people employed.
○ Our values also demand that no Bahamian is left hungry, or without shelter
and care. In our plan, we allocate over $85 million to ensure the social safety net
is strong enough and wide enough to protect the wellbeing of each and every
vulnerable Bahamian and resident.
We gave thoughtful consideration of these options and how they impact the deficit, and we are
confident that our proposed solutions provide the best response to the demands of the time.
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