Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697646984068.pdf (Bahamas)
C O M M O N W E A L T H O F T H E B A H A M A S 2021 2022 THE MINISTRY OF FINANCE C E C I L WA L L AC E W H I T F I E L D C E N T R E WEST BAY STREET P.O.BOX N-3017 NASSAU, THE BAHAMAS T : 1 .

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B S FIRST QUARTER FISCAL SNAPSHOT & REPORT ON BUDGETARY PERFORMANCE FY 2021/2022 | JULY-SEPTEMBER D R A F T E S T I M A T E S O F R E V E N U E & ECONOMIC OUTLOOK The Bahamas’s improved economic performance during the first quarter FY2021/22 is reflective of the accelerated pace of recovery in the domestic economy as COVID-19 vaccination and containment efforts improve both domestically and internationally.
As a result of progressive vaccine availability, relaxed curfews and the cessation of lockdowns, tourism activity has improved with stopover visitor arrivals nearing pre-pandemic levels.

However, unemployment levels remain elevated with beneficiaries relying on the government unemployment benefits program.

Inflation remains relatively contained but is projected to rise in the near term as global markets rebound.
F ISC AL BALANCE Preliminary data from the Central Government’s operations for the first quarter of the fiscal year 2021-2022 indicate an expected narrowing of the fiscal deficit to $153.5 million from $345.1 million in the previous year.

This outcome is largely due to the reopening of the economy.

Revenue receipts improved with increased tourism and taxable activities due to lessened COVID restrictions.
However, expenditure to support various social assistance and employment support programs in response to the pandemic continued during the period.

As a result of elevated debt levels to weather the impact of Hurricane Dorian and the coronavirus pandemic and a weak economic outlook, Moody’s Investor Service downgraded The Bahamas’s sovereign debt rating during the quarter from Ba2 to Ba3.
D E F I C I T P O S I T I O N 400 300 200 100 0 Q1 FY20/21 Q1 FY21/22 R E V E N UE E X P E N D I T U R E 600 400 200 0 Q1 FY20/21 Q1 FY21/22 2 700 690 680 670 660 650 640 630 620 610 600 Q1 FY20/21 Q1 FY21/22 FIRST QUARTER FISCAL SNAPSHOT & REPORT ON BUDGETARY PERFORMANCE REVENUE Revenue collection for the first quarter of FY2021/2022 totaled $572.8 million, surpassing the prior year collections by 90.3 percent ($271.9 million).
During the year, revenue collections firmed as economic activity improved as a result of relaxed COVID-19 restrictions, the resumption of taxable activities, local and global vaccine rollouts and an uptick in tourist arrivals in July and August.

O T H ER 2.8 2.9 B U S. L IC .


M O T O R V E H I C LE G A M I N G T R A D E TA X E S E X C I S E TA X T OTA L S TA M P TA X 6.1 14.6 6.1 4.8 5.4 10.5 13.2 26.9 13.6 10.8 V AT P R O P E R T Y 8.5 20.6 Y OY R E V E N U E P E R F O R M A N C E C O M P A R I S O N ( B $ M) 79.1 113.9 Q1 FY20/21 Q1 FY21/22 134.7 294.7 0 100 200 300 EXPENDITURE Aggregate expenditure firmed by $80.2 million (12.4 percent) to $726.2 million, accounting for 22.7 percent of target expenditures.
The increase in aggregate expenditure is largely the result of increased spending for compensation of employees ($11.6 million), social assistance benefits ($1.9 million), pensions and gratuities ($4.5 million), public debt interest ($11.7 million) and subsidies ($18.3 million).

Overall Expenditure increase was tempered in part by period-over-period reductions of $2.4 million for supplies and materials, $0.9 million in current transfers, and $3.8 million for capital transfers.
200 150 100 50 0 180.7 169.1 Q1 FY20/21 Q1 FY21/22 131.8 101.2 117.1 98.8 92.2 80.5 46.5 48.4 37.4 41.0 52.1 52.0 COMPENSATION GOODS & SERVICES INTEREST SUBSIDIES SOCIAL ASSISTANCE PENSIONS & GRATS OTHER 3 FIRST QUARTER FISCAL SNAPSHOT & REPORT ON BUDGETARY PERFORMANCE TAX REVENUE PERFORMANCE Tax receipts improved period-over-period by $230.2 million, an 85.4 percent increase to $499.7 million, representative of 25.9 percent of the budget.
During the quarter, taxes on property totaled $20.6 million, an increase of $12.1 million (142.8 percent) supported by the Government’s Real Property Amnesty program.

VAT receipts firmed by 118.8 percent ($160.0 million) to $294.7 million owing to the enhanced economic activity caused by improved COVID-19 containment and vaccinations.

Likewise, gaming taxes amplified period-over-period to $10.5 million, a 93.7 percent increase from the previous period.
Further improvements to tax performances include: departure taxes by $9.0 million (560.9 percent) to $10.6 million, business license tax by $8.5 million (139.4 percent) to $14.6 million and marine license activities by $0.8 million (266.8 percent) to $1.1 million.

NON-TAX REVENUE SUMMARY Non-tax revenue firmed by $41.6 million (132.5 percent) to $73.0 million and 23.0 percent of the budget.

Property income totaled $15.7 million, a 1,869.9 percent increase period-over- period.
Revenue from the sale of goods and services improved by $26.1 million (88.6 percent) to $55.6 million largely driven by the $20.2 million (146.6 percent) increase in immigration fee collections.

Fines, penalties and forfeits firmed by $0.4 million (46.7 percent) to $1.2 million and miscellaneous and unidentified revenue improved by $0.1 million (36.3 percent) to $0.4 million.
RECURRENT EXPENDITURE Recurrent expenditure increased by $7.8 million (13.3 percent) to $663.6 million during the first three months of FY2021/2022, as compared to the same period in the prior year – representing 23.5 percent of the targeted spend.

Compensation of employees grew by $11.6 million (6.8 percent) to $180.7 million.

Expenditures for the acquisition of goods & services increased by $30.6 million (30.2 percent) to $131.8 million.
Public debt interest increased by $11.7 million (14.5 percent) to $92.2 million.

Subsidies to government-owned and/or controlled enterprises expanded by $18.3 million (18.6 percent) to $117.1 to assist the health, education and air transport sectors.

Social assistance benefits expanded by $1.9 million (4.2 percent) to $48.4 million—being driven by COVID-19 related outlays for unemployment assistance and food assistance occasioned by extensions to the related programmes.
4 C API TAL EXPENDITURE Capital expenditure grew by $2.2 million (3.7 percent) to $62.6 million, when compared to the same period of the previous year - representing 16.8 percent of the budget for FY2021/2022.

Transfers receded by $3.8 million (19.6 percent) to $15.8 million.

Key capital expenses included $1.0 million in support for small and medium sized enterprises, $7.6 million to continue recovery efforts from Hurricane Dorian and $5.5 million for energy restoration and renewable energy.
Expenditure on fixed assets increased by $6.1 million (14.9 percent) to $46.9 million – representing 19.4 percent of budget.

Capital fixed asset spend comprised $18.8 million on public buildings, $15.5 million on other structures, $1.7 million on machinery, $2.5 million in park and ground improvements and $2.3 million on other fixed assets.
END-JUNE 2021 END-SEPTEMBER 2021 GOVERNMENT DEBT % GDP 9,935.3 10,087.0 100.5% 98.1% B$ NON B$ TOTAL ($) MONEY BORROWED 473.8 23.7 342.9 MONEY REPAID AS OF SEPTEMBER 2021 10,488.1 million NATIONAL DEBT FIRST QUARTER FISCAL SNAPSHOT & REPORT ON BUDGETARY PERFORMANCE F INA NCING ACTIVITIES The government’s operational activities for the first quarter of FY2021/22 included a net increase in liabilities of $154.6 million, compared to $692.0 million in the same period of the prior fiscal year.
CHANGES IN GOVERNMENT DEBT Given the developments in net borrowing, the Direct Charge on the Government–exclusive of interest rate adjustments, firmed by $151.7 million to $10,087.0 million or 98.1 percent of GDP at end-September 2021, as compared to 100.5 percent of GDP at end-June 2021.
END-JUNE 2021 END-SEPTEMBER 2021 GOVERNMENT DEBT % GDP 9,935.3 10,087.0 100.5% 98.1% B$ NON B$ TOTAL ($) MONEY BORROWED 473.8 23.7 MONEY REPAID 342.9 AS OF SEPTEMBER 2021 10,488.1 million NATIONAL DEBT MONEY BORROWED With the rebounding domestic economy, Government’s gross borrowing was contained at $497.0 million as compared to $921.0 million in the same period of the prior year.

Domestic bonds totaled $48.8 million to cover required financing.
Foreign borrowing from international development agencies aggregated $23.7 million, mainly comprised of US$10.4 million for energy sector reconstructions, US$2.8 million for government digitization initiatives, US$2.7 for a micro and small business program, and US$2.4 million to support the health sector with COVID-19 containment.

Short-term financing comprised $265.0 million in Treasury Bills and $160.0 in Central Bank advances.
MONEY REPAID Debt amortization payments were higher at $342.9 million from $229.0 million in the prior year.

POL ICY INITIATIVES As a result of national elections held 16 September, 2021, a change in administration occurred.

The new administration has signaled its intent to shift policy direction which is reflected in its supplementary budget and will be reflected in future versions of this report.
NATIONAL DEBT National Debt is calculated by adding Government Debt together with Contingent Liabilities, which are monies owed by State Owned Enterprises that are guaranteed by the Government.

The Central Bank of The Bahamas reports on the National Debt every calendar year.
NATIONAL DEBT: $10,488.1 million (to September 2021) www.centralbankbahamas.com 5 FIRST QUARTER FISCAL SNAPSHOT & REPORT ON BUDGETARY PERFORMANCE SUMMARY OF COVID-19 RELATED EXPENSES (B$M) FY2019/20 FY2020/21P FY2021/22 JULY - SEPT TOTAL RECURRENT EXPENDITURE 39.2 268.5 PUBLIC HEALTH SAFETY UNEMPLOYMENT ASSISTANCE GOODS & SERVICES ACQUISITION JOB RETENTION PROGRAMME FOOD ASSISTANCE OTHER 1.9 10 1.8 21.4 2 2.1 CAPITAL EXPENDITURE 40.3 PUBLIC HEALTH SAFETY GOODS & SERVICES ACQUISITION COVID-19 UNIT SMALL BUSINESS LOANS TOTAL 79.5 273.3 39.4 392.1 6 FIRST QUARTER FISCAL SNAPSHOT & REPORT ON BUDGETARY PERFORMANCE C O M M O N W E A L T H O F T H E B A H A M A S 2021 2022 D R A F T E S T I M A T E S O F R E V E N U E & THE MINISTRY OF FINANCE C E C I L WA L L AC E W H I T F I E L D C E N T R E WEST BAY STREET P.O.BOX N-3017 NASSAU, THE BAHAMAS T : 1 .
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B S FIRST QUARTER FISCAL SNAPSHOT & REPORT ON BUDGETARY PERFORMANCE FY 2021/2022 | JULY-SEPTEMBER