The primary focus of the Bahamas Budget 2011-12 is the creation of new jobs. The national administration, though, has accepted the fact that it will be tough to create new jobs because of the present world economic condition.
Bahamas Budget 2011-12 Highlights:
With the 2011-12 Bahamas budget, the administration will look to increase the skill sets of its available work force and prepare the unemployed Bahamians for various profiles.
It will also encourage the private sector to create more opportunities in the Bahamas but only for a short term.
The government will allot $25 million for the National Job Readiness and Training Programme in the 2011-12 budget.
Through the Work Placement and Employment Exposure Programme the Bahamian government will encourage hiring by the privately owned enterprises. These companies will also be provided financial incentives such as direct wage subsidies based on their employment.
Through the Jump Start Programme, the Ministry of Finance will be allotted 1.5 million dollars.
This money will be used to aid individuals looking to create their own small and medium businesses. This will be similar to the Youth Self-Starter Programme.
In the 2011-12 the national government will also start a recruitment program for the Public Service sector.
It will include students from the high schools, colleges and universities.
The government will aim to support the small and medium sized enterprises in the upcoming fiscal with several changes to the institutional structure that aids these organizations. Both financial and non financial services will be assisted.
A Medical Care Improvement Act will be introduced in 2012 with the specific purpose of assisting the betterment and development of new medical care facilities across the country. It will be similar to the Hotels Encouragement Act.
The Bahama national government will look to go on with the e-Government Initiative in 2011-12 in order to upgrade the Public Service sector and provide better services to its citizens.
The government will introduce a consolidated structure for tax administration that will take the whole set-up to the next level. The Caribbean country will also look to widen its tax base for better revenues and improved functionality.
The Central Bank of Bahama has introduced a detailed framework for risk assessment, which will make the financial sector more stable and resilient. The Central Bank of the Bahamas Act will increase the bank s role to make sure that national securities settlements and payments systems are functioning better.
The government expects that at the end of the 2011 fiscal national economic growth will be 2 percent and this will go up to at least 2.5 percent by 2012 end.
Recurrent expenses for 2012 have been estimated at 1,680 million, which is $36 million more than 2011 fiscal.
The projected GFS deficit for 2011-12 is 248 million dollars, which will be equal to 3 percent of the GDP.
In 2012 the government debt has been estimated at 46.2% of the GDP or 3.779 billion dollars.
$280 million will be allotted for capital expenses this will account for 3.4% of the GDP. In 2010-11 expenses for this sector comprised 3 percent of the GDP.
Bahamas Budget 2011-12: Expectations:
It is estimated that in the upcoming fiscal the Bahama government will earn revenue worth approximately 1,514 million dollars, which will be equivalent to 18.5 percent of the GDP. The national administration calculates that capital revenues will increase in the upcoming fiscal to $132 million. This figure will be achieved by selling the following government assets:
9% shares in BTC
Shares in the Wallace-Whitfield Building
10% shares of Arawak Cay Port
Debt notes of Nassau Airport Development Company