Cooper blasts govt’s Fiscal Strategy Report

Shadow Minister for Finance Chester Cooper called the projections in the government’s newly released Fiscal Strategy Report (FSR) “fanciful” and contended that the report merely reveals new taxation, starved capital works and no growth strategy.  

The FSR communication, which the government released on Wednesday, explained that it intends to tax gaming house winnings, something Cooper lamented in his statement.

“After familiarizing myself with the late, incredibly verbose and sometimes misaligned Fiscal Strategy Report, I have yet to identify a clear strategy for economic growth, which is what the government should primarily be focusing on at this time,” Cooper said.

“What I do see is an administration that once again runs to impose additional taxes on the Bahamian people and further starve capital works that could spur the economy.

“The administration that railed against value-added tax and then raised it, is now looking to a legalized gaming industry it opposed to shoring up its fiscal position.

“Of course, we hear no talk of taxing the winnings of foreigners who gamble in the casinos where Bahamians are not allowed to play.”

Cooper contended that the government’s plan to restructure state-owned enterprises could come at a high cost for Bahamians.

“This administration also takes the hypocritical position of wanting to cut $100 million in spending while asking Bahamians to pay more,” he said.

“Bahamians will now also have to change the way their finances are budgeted as they brace for not only an increase in the rates they pay for water, but the frequency at which the bills come.

“Increasing fares at Bahamasair will also hurt family island residents and impact tourists who wish to visit the Family Islands.”

He said the FSR’s forecasts will likely need to be adjusted and he called once again on the government to create a debt committee to plot the way forward for the country. 

Cooper added that the government needs to provide detailed reports from several of its operations.

“I again call on the government to establish a debt committee with private sector contributors to manage, renegotiate and restructure debt to create savings and headroom in the short term,” he said.

“I also call for a detailed accounting of the affairs of the National Insurance Board, on whether the government has funded its share of the unemployment assistance via NIB or whether they are borrowing from the social security system.”

Cooper also voiced his concerns over the country’s foreign exchange reserves, explaining that while they are robust now, keeping them at this level must not depend on further borrowing, which the country did at high interest rates.

“The report also conveniently does not highlight the expensive rate at which the recently acquired funds will be repaid. The PLP, the IMF and other have asked that we produce a credible plan, but it appears we still have not. Most of the strategy is a retread of previous rhetoric.

“A report on the progress of digitization, properly fixing state-owned enterprises, pension reform, public-private partnerships and the IMF’s recommendation on tax reform might do well in inspiring confidence.”

He suggested that the government produce a progress report on the Revenue Enhancement Unit, detailing the collection of taxes from the sectors of the economy that can afford to pay them with a focus on the collection of real property taxes, “inclusive of high-end properties in places like the Exuma and Abaco Cays.”

“Meantime, our debt-to-GDP ratio is approaching 100 percent and the deficit projections will be moot in short order,” he said. 

The post Cooper blasts govt’s Fiscal Strategy Report appeared first on The Nassau Guardian.

source https://thenassauguardian.com/cooper-blasts-govts-fiscal-strategy-report/