Controlling the Household Expenses/Balancing the National Budget

• Author: Derence A. Rolle Davis
• Pages: 28-38

Derence Rolle Davis

Controlling the Household

Expenses/Balancing the National Budget

The Bahamas moved to the year 2001 while we were still facing the issues

of blacklisting and considering what should be done about it. This period caused

us to question ourselves in relation to our sovereignty as well as to the business

of banking and The Bahamas’ status as a tax haven. The raft of financial

legislation passed in 2000 forecasted the downfall of the banking industry and

triggered a series of many challenges to come.

As a result of the receding banking industry, which had significant impact

on the economy, the Government decided to institute austere measures in an

attempt to regenerate the economy. Austerity is defined as difficult economic

conditions created by government measures to reduce public expenditures. It is

clarified in the attempt to balance the budget to reduce government spending

and to give the country an opportunity to lower its expenditure by spending less

than it earns.

The Economic affects

Economically, we had experienced the most prosperous period from 1997-

2001 than in two decades prior, which was an oddity within itself. For example,

Atlantis Hotel on Paradise Island had completed its first phase and employed

thousands of workers, the Cable Beach strip had been redeveloped and a number

of small business licenses had been issued.

Subsequently, the period 2000-2001 showed a larger amount of small

businesses opening. Notwithstanding the apparent boom in business and

despite the financial gain in peoples’ pockets, the FNM government was still

kicked out of office. It may have been because the expectation for governance

was too high amongst the “newly empowered voters” (18 to 30 year olds).

One of the issues that continue to plague The Bahamas is the constant

barrage of illegal/irregular migrants. Its social and economic effects on the

country over the years is astronomical and perhaps even immeasurable. Indeed,

repatriation of Haitians to their homeland cost the government of The Bahamas

One Million dollars (1 Million) during 2001. The Caribbean Single Market and

Economy (CSME) and why The Bahamas opted out of CARICOM is best

explained by the comments of PM Hubert Minnis when he addressed CARICOM

in 2018. Prime Minister Minnis said that many Caribbean nationals remain

28