Thompson: Private sector participation key to govt’s 2021/2022 plan

Minister of State for Finance Kwasi Thompson said the government’s 2021/2022 annual budget calls for much more private sector participation in the economic life of the country, contending that for “too long the government has placed itself at the center of national economic life”.

Thompson, who made the remarks during the government’s post-budget communication press conference, said the focus is to build a foundation for more private sector involvement in the economy, while improving the government’s facilitation of the things needed to make that participation a reality.

The government’s new 2021/2022 Accelerate Bahamas Recovery Plan calls for the private sector to use government resources to move the economic needle.

“We believe that our country does well when we create a dynamic environment for the private sector to grow and innovate,” said Thompson.

“The Accelerate Bahamas Recovery Plan seeks to leverage limited public resources, gathered through the productivity of hard-working Bahamians, in a more strategic way. We will deploy these resources to address the immediate needs of our ongoing recovery and our more fundamental challenges, like revenue shortfalls and anemic growth.

“Our plan recognizes that by expanding and motivating private sector participation instead of solely relying on direct government payouts, we can create more robust pathways to increase employment, stimulate economic activity and therefore increase revenue into the public purse.

“For too long, we have relied on the government to be the primary source of employment, using public funds as a band-aid for longstanding, acute structural deterioration.”

One move in the government’s playbook is to use tax incentives to stimulate private sector employment. The government announced on Wednesday that it will provide a $400 per week, per employee tax credit for businesses that hire up to ten new employees. Employers will be able to begin reaping the benefits of this program from July 1. The government hopes this initiative will generate 2,500 jobs.

Thompson said this private sector-centered approach will cause a “structural shift” in the way the Bahamian economy works in the long term.

The post Thompson: Private sector participation key to govt’s 2021/2022 plan appeared first on The Nassau Guardian.

source https://thenassauguardian.com/thompson-private-sector-participation-key-to-govts-2021-2022-plan/