Business
The Bahamas: Austerity as gov’t to implement spending cuts – social services will not be affected
The government in the Bahamas has ordered its various departments and agencies to cut 10 percent from their budgets in response to serious challenges facing public finances.
“We think we can do the spending cuts without cutting back on essential services,” said Minister of State for Finance Michael Halkitis.
Halkitis said critical agencies like the police and the Department of Social Services won’t have to cut their budgets.
The government is expected to formally announce the spending cuts in its mid-year budget statement to be presented in the House of Assembly on February 20.
“We’re trying to bring down the US$550 million deficit”, said Halkitis.
The projected deficit for 2012/2013 is US$550 million or 6.5 percent of GDP, as revealed last May in the prime minister’s budget communication.
Government debt is forecast to stand at US$4.6 billion or 54.5 percent of GDP at the end of the fiscal year.
