2020/21 Budget Communication 2020-21 Budget Communication - Final (1)-compresse | Page 16

suitable quarantine facilities if needed, and other measures to make certain that this
country is fully equipped to combat the spread of the virus.
● $30 million to expand the business support and continuity loan program for Bahamian
entrepreneurs and small businesses.
● In addition to the expenditure elements noted above, as mentioned earlier the Government
is seeking to defer up to $120 million in tax collections to extend and expand the Tax
Credit and Tax Deferral Program, allowing all VAT eligible businesses to access tax
credits and waivers for a period of 3 months to cover payroll for management and line
staff.
As with the Business Continuity program, this tax credit and deferral program is provided
on the condition that businesses use the proceeds primarily to meet payroll needs and to
keep people employed.
In addition to the expanded allocations to address the COVID-19 pandemic, the Government is
increasing its allocation to National Health Insurance (or NHI) by $18 million. When the Prime
Minister discusses his Health Portfolio, during the upcoming Budget Debate, he will speak in detail
of the successes that NHI has had to date and how its expansion will both improve the delivery of
health care and rationalize the operations and efficiencies in the health care sector.
Primary care delivery is estimated to cost the Government $83.3 million each year. Without
significant change to the delivery model, this would escalate to $127.7 million by 2025—an
increase of $44.4 million. The integration and streamlining of these separate healthcare delivery
systems are essential to ensure better quality care of patients. Therefore, the Government is
proposing for The National Health Insurance Authority (NHIA) to lead a series of reforms, which
would effectively and efficiently address these ongoing challenges.
This refocused NHI initiative will require no additional taxation or employer mandate. Most
importantly, it will ensure that every Bahamian and resident has consistent access to a family
doctor with minimal copay requirements or deductibles. As the changes crystalize, this new
streamlined approach is estimated to save the Government of The Bahamas approximately $62
million over the next 5 years.
The enhanced NHI would help us to move to a more efficient and accountable approach, and more
importantly, expand primary health care coverage to every Bahamian. Given that allocations to the
Public Health Authority represents our largest subvention to SOEs, the Government cannot give
effect to reform in the SOE sector without determining how it will make delivery of basic health
care more efficient and effective.
Mr. Speaker,
The combination of these economic support measures are critical elements of our strategy, guided
by our strategic priorities to enhance public health and safety, expand social protection, sustain
employment, strengthen the domestic economy and accelerate Government reforms and national
resilience.
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