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Hurricane Dorian Extraordinary, Unexpected Fiscal Impact causes Bahamas Govt to present Supplementary Budget

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#NASSAU, Bahamas — January 30, 2020 — Deputy Prime Minister and Minister of Finance the Hon. K. Peter Turnquest explained that the Government is presenting the extraordinary and unexpected fiscal impact of Hurricane Dorian as a Supplementary Budget, so that the Bahamian people are made fully aware of exactly how the Government intends to address the challenges which have emerged.

As he presented the Supplementary Budget Statement in the House of Assembly, Wednesday, January 29, 2020, DPM Turnquest stated that the supplementary appropriations outline both the expected revenue losses arising from the Hurricane together with the increases in the recurrent and capital expenditure allocations necessary to deal with the emerging restoration and rebuilding activities on the islands of Abaco and Grand Bahama.

Peter Turquest, Bahamas Deputy Prime Minister, Minister of Finance

“The Supplementary Budget Book provided to this Honourable House presents the expected revenue loss for this fiscal year, by the respective revenue categories, which underlay the adjusted revenue budget for FY2019/20; it details the additional capital and recurrent expenditure arising from Hurricane Dorian, as well as several other policy imperatives.  As these impacts are multi-year, the medium-term forecasts have been extended by one year and revised through to FY2022/23.”

He noted that in circumstances like this facing substantial revenue loss and significant new expenditure requirements, governments are compelled either to raise additional funds through greater taxation – or through increased borrowing in the near term.   “The Government has determined that additional taxes would not be optimal at this time, given the substantial impact of Dorian to our economy and the need to maintain private consumption levels.   Accordingly—and very conscientiously—the government has decided to fund the revenue loss and expenditure requirements through additional borrowings. 

“Thus, I am also tabling a new borrowing resolution for authorization to borrow beyond the $72.4 million (which excludes the $628.0 million for refinancing of maturing debt) approved at the time of the 2019/20 Budget Communication in May of last year.”

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He said, “As I mentioned during the tabling of the 2019 Fiscal Strategy Report in November, we anticipate that total revenue for FY2019/20 will now be reduced by $232.6 million, due to revenue losses and revenue foregone from VAT, Business Licence fees, Customs, and a number of other taxes in the Hurricane-affected islands.”

DPM Turnquest stated that it is important to remind the House that given the magnitude of the impact of Dorian on the islands of Abaco and Grand Bahama, the Government unveiled an unprecedented package of tax incentives and concessions as a key part of the establishment of the Special Economic Recovery Zone (SERZ).  I know that members opposite agree—like all Bahamians—that this was and is the right thing to do.  

“However the impact of those much needed tax concessions for those island mean that over $200 million in tax revenues is being deliberately and consciously foregone.  This is being done so that the government is doing as much as it reasonably can to aid the speedy recovery and restoration of those impacted communities. 

“Thus, at year-end, we project a revised aggregate revenue of some $2,395.6 million in FY2019/20, as opposed to the $2,628.2 estimated at the time of the annual budget exercise.”

He added that given the total incremental spending that the Government will have to undertake to initiate rebuilding and restoration efforts, we anticipate that total expenditure will increase to $3,073.1 million for FY2019/20, in comparison to the $2,765.0 initially budgeted and approved. 

Abaco post Hurricane Dorian

The DPM explained that recurrent expenses are projected to be higher by $157.6 million, bringing the revised estimates to $2,687.6 million.  Of this total, approximately $82.7 million is associated with Hurricane Dorian, which include:

  • $23.1 million in costs associated with clean-up activities,
  • $12.9 million to facilitate food and accommodation assistance programmes,
  • $11.4 million to fund the extension of the unemployment benefit to eligible persons,
  • $11.1 million in allowances for affected public staff,
  • $5.4 million for the acquisition of supplies and materials,
  • a $1.5 million allocation to the new Ministry of Disaster Preparedness, Management and Reconstruction, and,
  • the remaining $17.3 million allocated to primarily cover contingencies, consultancy services, security and other costs.

He said, “This spending has and will facilitate a number of social assistance measures on the Government’s part.  For example, the Government has aided with rental assistance to evacuees from both Grand Bahama and Abaco, provided accommodations to hurricane victims by way of shelters, food assistance to victims outside of the shelters, and has also extended its national lunch benefit to displaced students that relocated to schools in New Providence. In addition, the Government is seeking to expand the National Insurance Board (NIB) unemployment benefit to 26 weeks from 13 weeks to eligible persons that have been impacted by the storm.”

BIS STORY By Llonella Gilbert

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Bahamas News

Bahamas Officials in Botswana

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Rashaed Esson

Staff Writer

 

#Bahamas#Botswana, March 18th, 2024 – Prime Minister of The Bahamas Philip Davis is now in Botswana from March 18 to the 22, invited by Botswana’s president  Mokgweetsi Masisi, and both nations, according to The Bahamas Office of the Prime Minister, are expected to sign agreements for trade, education, tourism, investment, banking and climate change in efforts to strengthen diplomatic ties. The Bahamian officials accompanying Davis are the Minister of Foreign Affairs; Minister of Education and Technical and Vocational Training; Minister of Economic Affairs; Minister of Youth, Sports and Culture and Parliamentary Secretary of Tourism, Investment and Aviation.

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RBDF Operation Strengthens Maritime Security Amidst Regional Turmoil

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Defence Headquarters, 17 MAR. ’24: A joint operation between the Royal Bahamas Defence Force (RBDF) and the Royal Bahamas Police Force (RBPF) led to the apprehension of 50 Haitian migrants approximately 5 nautical miles west of Bell Island on Saturday, March 16th.

The operation was initiated following the initial sighting of a sailing vessel, believed to be of Haitian origin, 8 miles southwest of Staniel Cay in the Exumas. RBDF swiftly deployed air and surface assets stationed at Matthew Town Inagua, supported by Police officials in Staniel Cay who verified the sighting. The migrants were intercepted by RBDF personnel stationed at the Land and Sea Park, Wardrick Wells Exuma, and subsequently handed over to the safe boat crew. They are currently under apprehension pending further investigation, with the imminent arrival of HMBS Rolly Gray.

In response to the ongoing instability in Haiti, Commodore Raymond King has announced the implementation of a strategic blockade in the southern Bahamas. This initiative includes the deployment of six surface vessels, one aircraft, and 120 highly skilled RBDF personnel. Patrol operations will be concentrated in critical areas such as the northern coast of Haiti, the Old Bahama Channel, and the Windward Passage, with the aim of deterring unauthorized entry attempts and preserving maritime security in the region.

The effectiveness of these decisive measures is evident, with recent apprehensions totaling 247 individuals by the RBDF. Commodore Raymond E. King emphasizes the commitment to bolstering maritime security through collaborative efforts with regional partners and local law enforcement agencies.

The Royal Bahamas Defence Force remains committed to safeguarding the nation’s borders and territorial integrity, working collaboratively with regional partners.

(For further information please contact the RBDF Public Relations Department or visit our website: www.rbdf.gov.bs, follow us on Facebook, Twitter and view our Youtube channel)

-rbdf-

#GuardOurHeritage

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CIBC CARIBBEAN and Bahamas Girl Guides Association host inaugural Delaney Leadership Seminar

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Nassau, Bahamas, February 28, 2024 – Enthusiastic girl guides, ranger guides, and girls representing schools across The Bahamas recently gathered at the first ever Delaney Leadership Seminar.

The seminar, named in honor of CIBC FirstCaribbean’s (now CIBC Caribbean) first female chief executive officer, Ms. Colette Delaney, empowered the next generation of female leaders through focused sessions on leadership development, cultivating a leadership mindset, and the importance of building strong, supportive friendships. 

The event featured a series of team building exercises, interactive discussions, and a keynote address by Dr. Jacqui Bend, CIBC Caribbean’s Managing Director. Dr. Bend shared insights on the essence of leadership, guiding principles, and emphasized the role of young women in shaping a vibrant future for The Bahamas and beyond.

“It was a privilege to witness the incredible energy and budding potential of the young leaders that participated. Leadership is not just about guiding others; it’s about inspiring action and fostering an environment where everyone can thrive. The Delaney Leadership Seminar is a testament to CIBC Caribbean’s commitment to nurturing young, bright minds and equipping them with the skills and confidence needed to lead with purpose and passion,” said Dr. Bend.

Held under the theme, Our World, Our Bahamas, Our Thriving Future, the seminar underscored the importance of lifelong learning, perseverance, empathy, and collaboration in leadership, among other guiding principles. Dr. Bend highlighted the strides already being made by the participants and encouraged them to continue exploring their potential and envisioning their roles in creating positive change within their communities and the wider world.

Delina Rolle, a tenth-grade participant and aspiring lawyer from Preston H. Albury High School in Eleuthera, shared, “This seminar has been a life-changing experience for me. Hearing Dr. Bend’s success story and her tips were inspiring for me as a young girl trying to be a leader. I am happy I was selected by my school’s administration to attend and connect with so many amazing girls who share my dreams of making a difference.”

The Delaney Leadership Seminar has set a new benchmark for youth leadership programs in The Bahamas. The event concluded with a commitment from both CIBC Caribbean and the Bahamas Girl Guides Association (BGGA) to continue their support for youth leadership initiatives. 

In 2022, CIBC FirstCaribbean donated to the BGGA to assist in completing the interior of its $1.5 million, West Bay Street headquarters, which will feature meeting rooms, office spaces, training areas, accommodations for girl guides visiting from other countries and other essential working areas.

It was at that time that Dr. Bend affirmed the bank’s commitment to support organizations that mirror the bank’s promise to assist women and girls in the communities it serves. Prior to that, the bank donated several native trees to BGGA, which were planted at its campsite, Camp Discovery, in partnership with the Ministry of Environment and Housing’s Forestry Unit.

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