Thursday, Jul 9, 2020
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Budget outlines govt arrears

The 2018/2019 budget outlines a number of significant outstanding government arrears.

Toping that list of arrears is a $17 million bill to cruise line operators.

The government owes $11,921,474 for a Bahamas Electrical Corporation (BEC) arrears action plan and $10,265,412 for Bahamas Telecommunications (BTC) arrears. The National Drug Plan is owed a total of $13,589,278, and the Mortgage Relief Programme is owed a total of $233,000.

For its public private partnership with Arawak Homes, the government has arrears of $6 million. For development contracts with Canadian Bank Note, the government has arrears of $6,299,836.

The government also has arrears for Bank of The Bahamas (BOB) for a settlement for contingent liability and provision for resolve of interest payment at $17 million and $8,805,000, respectively.

Other arrears on that list include, $3,839,634 for water; $13,589,278 for rent; $50,227,305 for other outstanding commitments; and $2,215,279 for capital outstanding commitments.

Value-added tax refund arrears total $10,750,750.

Deputy Prime Minister and Minister of Finance Peter Turnquest announced yesterday an increase in VAT from 7.5 percent to 12 percent.

In his communication, Turnquest said the government must find a way to pay off its “massive backlog of arrears” and set the stage for pending reductions in customs duties when The Bahamas to join the World Trade Organization next year.

 

 

 

Staff Reporter at The Nassau Guardian
Sloan covers national news for The Nassau Guardian. Sloan officially joined the news team in September 2016 but interned at The Nassau Guardian while studying journalism at the University of The Bahamas.
Education: Vrije Universiteit Brussel (University of Brussels), MA in Mass Communications
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