Between January of 2015 and June of 2018, the government says it expects to collect almost $2 BILLION FROM US IN VAT. TWO BILLION DOLLARS FROM OUR POCKETS TO THE TREASURY. Remember, we were originally told that our VAT money would be used to cut into our debt levels.
So then why does the government’s Budget say that GOVERNMENT DEBT IS GOING TO INCREASE EACH YEAR DURING THAT PERIOD, AND THE IMF NOW SAYS DEBT TO GDP WILL ALSO INCREASE FOR THIS YEAR AND NEXT YEAR?
Don’t just take my word for it. Below are the 2015/2016 Budget Estimates for Government Debt and the IMF’s recent Article IV Report on The Bahamas that shows the increased debt projections even though the government expects to collect more and more from us each year in VAT. And about “cutting the deficit”. Recognize. DEBT & DEFICIT ARE TWO DIFFERENT THINGS. Deficit is a REVENUE & SPENDING indicator. It is the difference between how much you collect and how much you spend in a single fiscal year. Debt is the total amount you owe. The only reason we are seeing deficit changes IS THE GOVERNMENT IS TAKING IN SO MUCH MILLIONS FROM US IN VAT THAT IT WASN’T TAKING IN BEFORE. It is not because of any improved fiscal management on their part, particularly since real economic growth is still very minimal and SPENDING as a percentage of GDP is remaining constant – MEANING THE MORE WE TAKE IN, THE MORE NEW WAYS THEY FIND TO SPEND THE MONEY.