Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697647426643.pdf (Bahamas)
FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER Contents 1.

About This Report ................................................................................................................................. 3 2.

Summary of Fiscal Performance for FY2019/20 ................................................................................... 4 3.
Revenue Performance .......................................................................................................................... 6 4.

Expenditure Developments .................................................................................................................. 9 a. Recurrent Expenditure ...................................................................................................................... 9 b.
Capital Spending ............................................................................................................................. 12 5. Financing Activities ........................................................................................................................... 123 6.

Policy Initiatives for Enhanced Public Financial Management ........................................................... 15 2 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER 1.
About This Report General Statement To promote greater transparency in the public finances and align with global fiscal disclosure standards and best practices, the Ministry of Finance has commenced in-year reporting on the performance of the central government’s revenue, expenditure and financing operations vis-à-vis the approved budget.

Periodicity: Quarterly (Qtr.

I: July – September; Qtr.

II: July – December; Qtr.

III: July – March; and Qtr.

IV: July – June).


Timeliness: Within four (4) weeks after the end of the referenced quarter, except for Qtr.

IV report which will be released two months after the end of the quarter given year-end closing activities.

Publication: To be released on the Ministry of Finance website (www.bahamas.gov.bs).

Basis of Preparation The budgetary data are prepared using a modified cash basis of accounting and guided by International Public Sector Accounting Standards (IPSAS) cash basis.
As such, revenue is recognized when received and not when earned, expenditure is recorded in the period it is incurred and paid, and purchases of fixed assets, including immovable property, plant and equipment, are fully expensed in the year of purchase.
The fiscal data tables compiled in the quarterly reports are presented using the new modified chart of accounts introduced in July 1, 2018 which accomplishes two (2) important objectives, namely:  prepares for the eventual conversion of the accounting presentation to the IPSAS accrual basis,  facilitates the aggregation and presentation of the fiscal data to meet the International Monetary Fund’s Government Finance Statistics (GFS) 2014 reporting standards.
The primary purpose of the GFS is to provide a comprehensive conceptual and reporting framework for analyzing and evaluating the performance of the government’s finances.

It should be noted that, while the progressive shift to GFS (2014) brings several changes in the categorization of the budgetary data from the previous budget presentation, the overall revenue and expenditure figures are unchanged.
As reflected in the FY2019/20 budget presentation, the Ministry completed the implementation of the new chart of accounts and has adopted the full GFS (2014) presentation, which has resulted in several slight modifications to the categorization of expenditure and revenue items.

Unaudited Data As reconciliation is ongoing, the fiscal data presented in these quarterly reports are subject to change and, therefore, their status is provisional (denoted as “p”) until audited by the Auditor General.
Rounding Because of rounding, some totals may not agree with the sum of their component parts.

3 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER 2.
Summary of First Quarter Fiscal Performance for FY2019/20 Hurricane Dorian, which caused significant damage on the islands of Abaco and Grand Bahama in early September, had only a limited impact on budgetary developments for the first quarter of fiscal year 2019/20, as the Government commenced initial relief and restoration initiatives (see Box A).
Preliminary estimates of the fiscal outturn showed an improvement in the overall deficit to $41.8 million from $64.9 million in the comparable period of FY2018/19 (see Table 1).
TABLE 1: FISCAL SUMMARY (Statement of Sources & Uses of Cash) (B$M) Revenue Tax Non-tax Grants Expenditure Recurrent Capital Surplus/(Deficit) Financing Activities Net Acquisition of financial assets (-) Sinking Funds Equity Other Net Incurrence of Liabilities (+) Borrowings Debt Repayment [a] Budget FY2019/20 [b] [c] [b] -[c] [b/a] July - September FY2019/20p Actual FY2018/19p Actual Variance % of Budget 2,628.0 2,340.3 285.7 2.0 2,765.0 2,530.0 235.0 (137.0) 137.0 46.5 46.5 0.0 0.0 136.9 764.9 628.0 552.7 498.6 54.0 0.1 594.5 539.0 55.5 513.8 471.8 42.0 0.0 578.7 539.9 38.8 (41.8) (64.9) 41.8 21.7 6.7 0.0 15.0 64.3 162.6 98.3 64.9 44.5 6.7 37.8 0.0 136.5 280.0 143.5 38.9 26.8 12.0 0.1 15.8 (0.9) 16.7 23.1 (23.1) (22.8) 0.0 (37.8) 15.0 (72.2) (117.4) (45.2) 21.0% 21.3% 18.9% 5.0% 21.5% 21.3% 23.6% 30.5% 30.5% 46.6% 14.3% 0.0% 0.0% 47.0% 21.3% 15.7% Change in Cash Balance [()= increase] 46.5 (0.8) (27.2) 26.3 -1.8%  Aggregate revenue expanded by $38.9 million (7.6%) to $552.7 million, as compared to the first quarter of FY2018/19 and represented 21.0% of the budget.
Tax receipts—which constituted 90.2% of total collections—grew by $26.8 million (5.7%) to $498.6 million, mainly associated with higher Value-Added Tax (VAT) receipts.

Non-tax revenue was higher by $12.0 million at $54.0 million—of which $11.6 million represented payouts under the Government’s parametric insurance with the Caribbean Catastrophic Risk Insurance Facility (CCRIF) following the passage of Hurricane Dorian.
 Total expenditure firmed by $15.8 million (2.7%) to $594.5 million, for 21.5% of the budget, relative to the previous fiscal year.

The $16.7 million (43.0%) increase in capital outlays to $55.5 million was linked to initial efforts to restore water and electricity supplies on the Hurricane 4 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER Dorian affected islands.
Recurrent expenditure—comprising 90.7% of total spending—was marginally lower by $0.9 million (0.2%) at $539.0 million, as the $13.3 million (33.0%) hike in other payments, inclusive of transfers and insurance premiums, offset the $26.1 million (19.7%) decline in payments for the use of goods and services.
B$M 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0 Budgetary Performance 806.13 34.5 733.26 677.4 578.7 607.46 513.8 497.85 643.0 594.5 552.7 (41.8) (64.9) (72.9) (109.6) Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Rev Exp Def B$M 60.0 40.0 20.0 0.0 (20.0) (40.0) (60.0) (80.0) (100.0) (120.0)  To fund its budgetary operations, the Government borrowed $162.6 million, compared with $280.0 million over the first quarter of FY2018/19.
Of the total, US$26.9 million represented loans from international development agencies, including the first $25.0 million drawdown on the US$100 million Inter-American Development Bank (IDB) contingent credit facility to assist with hurricane relief efforts.

An additional $3.0 million was borrowed via domestic bank loans, $29.7 million was sourced by way of Treasury bills, and the remaining $103.0 million via bond issuances.
 As budgeted, financing transactions included a $6.7 million contribution to the sinking fund.

Government also made an additional shareholder loan of $15.0 million to Bahamas Power & Light (BPL), which is to be repaid, along with the earlier facility of an equivalent amount, by end- December 2019.

 Quarterly debt redemption stood lower at $98.3 million, from $143.5 million in FY2018/19.
 Given net borrowing activities, the Direct Charge on the Government (exclusive of exchange rate adjustments) increased from $7,527.0 million or 60.0% of GDP at end-June 2019, to $7,591.3 million or 59.6% of Gross Domestic Product (GDP) at end-September 2019.

Box A: HURRICANE DORIAN Hurricane Dorian ravaged parts of the northern Bahamas in September, causing significant loss of life, and damage to private homes and businesses and public buildings and infrastructure.
While the first quarter performance only reflects parts of the initial relief and recovery efforts, estimates of the full fiscal impact of Hurricane Dorian will be presented in the November 2019 Fiscal Strategy Report.

This document will include a fiscal adjustment plan, as the resultant costs will necessitate a temporary departure from the medium term fiscal targets established in the Fiscal Responsibility Act, 2018.

5 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER 3.
Revenue Performance During the first quarter, total revenue increased by $38.9 million (7.6%) to $552.7 million, relative to FY2018/19, which represented 21.0% of the budgeted amount (see Table 2).

Tax receipts, at 21.3% of the budget, expanded by $26.8 million (5.7%) to $498.6 million, and the non-tax component grew by $12.0 million (28.5%) to $54.0 million, for a lesser 18.9% of the target.

Percentage Composition of Tax Revenue (Qtr.

I FY2019/20) Property 2% Trade taxes 22% Other 3% Bus.
licences 2% VAT 53% Excise taxes 15% Stamp taxes 3% Key underlying developments for the first quarter of FY2019/20 performance are as follows:  Taxes on Goods and Services constituted the bulk (75.8%) of tax revenue, registering a $36.0 million (10.5%) boost to $377.7 million.

o VAT receipts grew by $66.8 million (33.5%) to $266.2 million, representing 24.2% of the budget.

This was due largely to the shift in the basis for assessment of taxes on several realty transactions, to VAT from stamp duties.
Correspondingly, revenue from stamp taxes on financial and realty transactions contracted by $43.8 million (80.5%) to $10.6 million, which equated to 10.4% of the budget.

o Excise taxes rose by $4.4 million (6.4%) to $72.9 million, which represented 25.7% of the budget.
o Gaming taxes increased by $2.2 million (35.9%) to $8.4 million, for 23.2% of the budget— partly reflecting the new tax regime for gaming operators following the court settlement in February 2019. o Buoyed by gains in business licence fees and notary public fees, collections from licenses to conduct special business activity were higher at $11.1 million from $4.4 million in FY2018/19.
6 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER 3-Month Comparison of Tax Revenue Performance (B$M) $300 $250 $200 $150 $100 $50 $0 $266 $199 $58 $73 $69 $110 $114 $8 $12 $13 $8 $6 $6 $7 $11 $4 $2 $2 Property VAT Stamp taxes Excise taxes Gaming Motor Vehicle Bus.

licences Other Trade taxes FY2019/20 FY2018/19  Taxes on international trade contracted by $3.6 million (3.2%) to $110.3 million, which represented 22.5% of the budget allocation.
Key drivers of this development include the $15.1 million (18.3%) decline in customs and other import duties, in the context of the recent removal of duty on certain household items as announced in the 2019/20 Budget Communication.

A monthly analysis also revealed a steeper than usual falloff in customs revenue between August and September—largely attributed to the Exigency Order declared in the aftermath of Hurricane Dorian, which allowed for the importation of certain relief items, duty and VAT free.
Reflecting the strong tourism performance, departure taxes firmed by $10.0 million (33.5%) to $39.8 million, while taxes on exports increased to $2.9 million from $1.4 million in the previous fiscal year.

 General stamp taxes were lower by $1.9 million (47.9%) at $2.1 million, which equated to 20.2% of the budget target.
 Property income—which includes interest, dividends and revenue from Government-owned property—rose by $0.4 million (25.0%) to $2.0 million, settling at only 5.1% of the annual projection.

 Receipts from the sale of goods and services increased by $0.8 million (2.1%) to $39.7 million— the equivalent of 19.2% of the budget.

o Other sales grew by $1.1 million (32.6%) to $4.6 million.
However, the yield from fees and services charges was $0.2 million (0.7%) lower, mainly because of a $1.7 million (13.6%) falloff in customs fees.

 Fines, penalties and forfeits were reduced by $1.1 million (78.6%) to $0.3 million, which constituted 4.9% of the budget.

 Miscellaneous and unidentified revenue surged to $11.9 million from $0.1 million in the comparable period of FY2018/19, owing mostly to the $11.6 million inflow from the CCRIF following the passage of Hurricane Dorian.
7 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER TABLE 2: REVENUE SUMMARY (B$M) TAX REVENUE (a+b+c+d) a.

Taxes on Property b.

Taxes on Goods & Services (i+ii+iii) i.

General VAT Stamp taxes (Financial & Realty) Excise Tax ii.

Specific (Gaming taxes) iii.

Taxes on Use of Goods/Permission to Use Motor Vehicle Taxes Company Taxes Licence to Conduct Special Bus.
Activity Marine License Activities Banks & Trust Companies c. Taxes on Int'l Trade & Transactions Customs & other import duties Taxes on Exports Departure Taxes Other d. General Stamp Taxes NON-TAX REVENUE (e+f+g+h+i+j) e. Property Income Interest & Dividends Revenue_Gov't Property f. Sales of goods & services i.

Fees & Service Charges General Registration General Service Immigration Land & Building Legal Customs Port & Harbour Health Other Fees ii.
Other g. Fines, Penalties & Forfeits h. Reimbursements & Repayments i. Misc.

& Unidentified Revenue j.
Sales of other Non-Financial Assets TOTAL TAX & NON-TAX REVENUE GRANTS CAPITAL REVENUE GRAND TOTAL [a] Budget FY2019/2 0 [b] [c] [b] -[c] [b]/[a] July - September FY2019/20 P Actual FY2018/19 P Actual Variance % of Budget (3.6) 36.0 27.4 66.8 (43.8) 4.4 2.2 6.4 (0.3) 0.0 6.7 (0.1) 0.0 (3.6) (15.1) 1.5 10.0 (0.0) (1.9) 12.0 0.4 (0.3) 0.6 0.8 (0.2) (0.3) (0.0) 1.8 0.0 0.1 (1.7) 0.1 (0.2) 0.0 1.1 (1.1) FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER 4.
Expenditure Developments a. Recurrent Expenditure Recurrent expenditure declined slightly by $0.9 million (0.2%) to $539.0 million, when compared with the corresponding period in FY2018/19 over the review period (see Table 3).

 Compensation of employees rose by $2.3 million (1.3%) to $176.5 million, constituting 22.9% of the budget allotment.
Among the components, wages and salaries were up by $1.3 million (0.8%), allowances grew by $1.6 million (13.4%) to $13.7 million, while social contribution payments were lower by $0.6 million (8.5%).

Settlement of Arrears (B$M) As a part of the Government’s overall plan to eliminate approximately $360 million in arrears payments over three years, beginning FY2018/19, the Government paid $17.1 million of the $100.9 million allocated for FY2019/20 during the quarter.
Since the start of the programme, the Government has paid a total of $201.7 million in arrears payments.

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4 8 1 7 .

1 0 2 7 .

2 1 1 .

8 8 8 .

 Note: Payment arrears are included across several expenditure categories.

 Spending on goods and services contracted by $26.1 million (19.7%) to $106.3 million, to settle at 18.2% of budget.
Much of this was explained by decreases in outlays for special financial transactions, tourism-related payments and finance charges, of $24.3 million (53.8%), $11.2 million (88.6%), and $10.4 million (64.7%), respectively.

In contrast, outlays for services, rent, supplies & materials, and travel & subsistence advanced by $13.1 million (79.4%), $9.1 million (72.8%), $2.6 million (23.9%), and $1.1 million (64.7%), respectively.
 Public debt interest payments rose by $2.3 million (3.1%) to $75.5 million, for 20.3% of the budget.

Of the total, 26.9% or $20.3 million was on foreign currency obligations, with the remaining $55.2 million (73.1%) used to settle Bahamian Dollar debt.

 Subsidies, which include transfers to Government owned and/or controlled units that provide commercial goods and services to the public—increased by $11.7 million (15.4%) to $87.8 million, or 24.5% of the budget.
9 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER o Subsidies to public non-financial corporations firmed by $16.8 million (24.7%) to $84.9 million.

Approximately $54.4 million, or 64.1% of the total, was allocated to the Public Hospital Authority (PHA)—a gain of $3.0 million over the previous fiscal year; and $5.0 million was directed to the National Health Insurance Scheme.
Comparative year-over year increases were also registered for subsidies to the national airline carrier ($3.7 million), the water and sewerage utility company ($4.4 million) and $0.7 million hike for the University of The Bahamas.

o Subsidies to private non-financial enterprises contracted by $5.3 million (67.9%) relative to the comparable prior year period, which included arrears settlements with cruise line operators.

Recurrent Expenditure vs Budget Qtr.


I FY2019/20 (B$M) $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $770 $585 $372 $358 $305 $141 $176 $106 $76 $88 $61 Compensation Use of G&S Interest Subsidies Pensions & Grat.

Other $32 Budget FY2019/20  Grants—gifts and donations to foreign governments and international organizations (including membership fees)—steadied at $1.3 million over the review period, representing 14.1% of the budget allocation.
 Social Assistance Benefits—in cash or in kind—fell by $5.5 million (48.7%) to $5.8 million, equating to some 12.5% of the budget.

This was due mostly to a $5.1 million decline in payments under the National Drug Plan.
10 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER TABLE 3: RECURRENT EXPENDITURE SUMMARY (B$M) [a] Budget FY2019/20 [b] [c] [b] -[c] [b]/[a] July - September FY2019/20P Actual FY2018/19P Actual Variance % of Budget RECURRENT EXPENDITURE Compensation of Employees Use of Goods & Services Travel & Subsistence Rent Utilities & Telecommunications Supplies & Materials Services Minor capital repairs Finance charges Special Financial Transactions Tourism Related Local Gov't Districts School Boards Other Public Debt Interest Subsidies Grants Social Assistance Benefits Pensions & Gratuities Other Payments Current Transfers n.e.c.
Insurance Premiums 770.3 585.1 18.9 69.8 87.9 47.0 192.5 5.2 45.6 80.3 10.0 13.2 0.1 14.7 371.6 357.9 9.2 46.3 140.7 249.1 171.6 77.5 176.5 106.3 174.2 132.4 2.3 (26.1) (0.9) 2.6 13.1 (0.1) (10.4) (24.3) (11.2) (0.2) (2.8) (2.1) 2.3 11.7 0.0 (5.5) 1.0 13.4 6.2 7.2 TOTAL 2,530.0 539.0 539.9 (0.9) 22.9% 18.2% 14.8% 30.9% 5.2% 28.7% 15.4% 11.5% 12.5% 26.0% 15.0% 21.2% 0.0% 18.4% 20.3% 24.5% 14.1% 12.5% 22.8% 21.5% 26.6% 10.3% 21.3%  Pension and gratuity payments grew moderately by $1.0 million (3.2%) to $32.1 million, to position at 22.8% of the annual target.
Of this total, approximately $25.6 million, or 79.8% was paid to government officials, while $5.7 million represented staff gratuities.

 Current transfers that are not elsewhere classified (n.e.c) were boosted to $45.7 million from $39.5 million in the first quarter of FY2018/19.

These included other direct and indirect Government support to households and non-profit institutions that assist households, and subventions to public corporations that do not otherwise classify as subsidies.
o Transfers to households—which are used to assist with financial relief—were higher by $4.3 million at $16.0 million.

Of this amount, $10.8 million, or 67.5%, represented 11 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER scholarships payments, reflecting the education initiative to provide free tuition to eligible students, as announced in the 2019/20 Budget Communication.
o Transfers to non-financial public enterprises declined by $1.6 million to $20.3 million, while transfers to financial public enterprises were relatively unchanged at $0.6 million.

o Reflecting timing differences, employee and eligible public officials’ health insurance premium payments increased to $8.0 million from $0.8 million in the comparative period of FY2018/19.

b.
b.

Capital Spending Capital outlays for the first quarter of FY2019/20 stood at an estimated $55.5 million, or 23.6% of the budget—a gain of $16.7 million (43.0%) over the comparable fiscal year period (see Table 4).
TABLE 4: CAPITAL EXPENDITURE SUMMARY (B$M) [a] Budget [b] [c] [b] -[c] [b]/[a] July - September FY2019/20 FY2019/20P Actual FY2018/19P Variance Actual % of Budget (2.0) (0.4) 2.2 0.1 1.1 0.0 34.3% 20.6% 21.2% 37.9% 13.5% 0.0% 11.7% 8.3% 16.7% 0.0% 235.0 55.5 38.8 16.7 23.6% Capital Transfers Acquisition of Non-financial assets Fixed Assets Buildings other than dwellings Other structures Transport equipment Other Machinery & equipment Land Improvements Other Fixed Assets Land TOTAL  Capital transfers, at 34.3% of the budget, more than doubled to $17.6 million, as developments were boosted by Hurricane Dorian related outlays to commence the restoration of water ($6.1 million) and electricity ($10.0 million) supplies on Abaco and Grand Bahama.
 Expenditure for the acquisition of non-financial assets grew by $7.6 million (25.1%) to $37.9 million, equating to 20.6% of the annual target.

o Acquisitions of fixed assets, including but not limited to buildings, machinery and equipment, rose by $7.6 million (25.1%), as outlays for buildings other than dwellings expanded by $6.6 million (39.7%) to $23.3 million.
Similarly, spending on other machinery and equipment more than doubled to $3.7 million from $1.5 million, and for other fixed assets, was higher at $1.5 million from $0.4 million in the first quarter of FY2018/19.

12 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER 5. Financing Activities Net Increase in Liabilities The Government’s operational requirements resulted in a net increase in its liabilities of $64.3 million over the first quarter of FY2019/20.
 To finance the deficit and refinance maturing debt, the Government borrowed $135.7 million in Bahamian Dollars—comprising $103.0 million by way of bond issues, $29.7 million in Treasury bills, and the remaining $3.0 million via short-term bank advances.
An additional $26.9 million was obtained in foreign currency via loans from international development agencies, $25.0 of which was the initial drawdown under the IDB US$100 million contingent credit line for hurricane- related social assistance relief needs and restoration initiatives.

 Debt amortization payments totaled $98.3 million, with $14.6 million used to reduce foreign currency obligations, and the remaining $83.7 million for Bahamian Dollars debt.
 Given these developments, the Direct Charge on the Government (exclusive of exchange rate adjustments) increased from $7,527.0 million or 60.0% of GDP at end-June 2019, to $7,591.3 million or 59.6% of GDP at end-September 2019.

CHANGE IN LIABILITIES (By Currency and Instrument) (B$M) Bahamian Dollars Bonds Treasury Bills/Notes Bank Loans Central Bank Advances Foreign Currency Bank Loans Loans from Int'l Dev.
Agencies TOTAL FY2019/20: July - September Borrowings Repayment Net Change 135.7 103.0 29.7 3.0 0.0 26.9 0.0 26.9 162.6 83.7 53.0 8.0 22.6 0.1 14.6 0.0 14.6 98.3 52.0 50.0 21.7 (19.6) (0.1) 12.3 0.0 12.3 64.3 13 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER Composition of Government Borrowings for First Three Months of FY2019/20 T-Bills 18% Bank Loan 19% Bonds 63% Bank Loan Bonds T-Bills Advances Contribution to Sinking Funds In the first quarter of FY2019/20, the Government contributed $6.7 million to sinking funds designated for future debt retirement.
As at September 2019, the accumulated value of the three arrangements established to retire external bonds stood at US$155.5 million, while the two (2) local funds were valued at $9.6 million.

Other The Government made a $15.0 million short-term shareholder loan to BPL in August 2019, to assist the entity in meeting amortization payments that became due in September 2019.

Like the terms of the previous facility extended to BPL in June 2019, the loan is to mature no later than December 31, 2019.
14 FIRST QUARTER REPORT ON BUDGETARY PERFORMANCE FY2019/20 JULY - SEPTEMBER 6.

Policy Initiatives for Enhanced Public Financial Management The Government continued to progress work on various legislative initiatives, intended to strengthen its commitment to the principles of fiscal responsibility outlined in the Fiscal Responsibility Act, 2018 (the Act).
At the conclusion of the ongoing internal review process, the intention is to submit the Public Financial Management Bill, the Public Procurement Bill, the Public Debt Management Bill, and the Disaster Relief Bill for public consultation prior to the end of the current fiscal year.

In addition to this suite of legislation, the Statistics Act is currently under review and will be sent out for public consultation once the review is complete.
The recent devastation caused by Hurricane Dorian in both Abaco and Grand Bahama and the attendant fiscal costs highlighted the vulnerability of the fiscal finances to natural disasters and underscored the Government’s commitment to ensure the sustainability of the public finances, and to strengthen its resilience strategies.
While the assessment is still ongoing, the damage caused to the productive capacity and infrastructure in both hurricane-affected islands will impose additional costs on the Government, beyond that anticipated in the recent fiscal plan articulated during the recent budget exercise for FY2019/20.

The size of this shock will result in the Government invoking the Exceptional Circumstance clause (13) in the Act that allows for a temporary deviation from the legally mandated targets.
Consistent with its commitment to fiscal prudence, the intent is to develop a strategy to ensure a convergence with these targets within the shortest timeframe possible.

The Government’s revised medium-term fiscal plan, to incorporate the fiscal adjustment mandated by the Act, will be outlined in the upcoming November 2019 Fiscal Strategy Report.

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