Economic Affairs
Having created a sound economic environ ment;
Having restored credibility to our country’s reputation through forthright, straight and honest dealings;
Having formulated clear and rational economic policies, and having published clear and specific investment guidelines and requirements for accessing investment incentives and concessions;
Having reduced the role of the state as a competitor in business enterprise; Having brought The Bahamas’ tourism sector back to a position of competitiveness and profitability and having reduced the deficit
We seek the evolution of a society marked by full employment and secure jobs, safe streets, good schools, adequate, accessible and affordable health care; a social security net for those least able to care for themselves, the children, the orphaned and widowed and the aged of our society, a society marked by love of God, and by compassion for our fellow citizens.
between the Government’s current expenditure and current revenue through better management of resources and simplification of Customs Administration;
The Free National Movement is determined to progressively continue to narrow, and within four years eliminate, the remaining deficit between current expenditure and current revenue. The principal economic objectives of the Free 		National Movement are now to consolidate the improved economic position achieved following four and a half years of astute fiscal and monetary management of the economy and to put in place additional policies to ensure an increase in the value-added in the productive sectors of the economy.
In accordance with its undertaking to the Bahamian people in Manifesto ‘92, the Free National Movement has restored credibility to the Government of The Bahamas and its finances and has introduced sound financial management systems which have considerably improved efficiency in revenue collection and public expenditure.
Value for money spent has significantly increased so that it was possible to undertake extensive capital expenditures for restoration of the national infrastructure, while at the same time reducing the level of the fiscal deficit from 3% to 1% of Gross Domestic Product (GDP).
In its further commitment to the principles of sound fiscal management the Free National Movement Government, in its second term, will continue with the reduction in the fiscal deficit so that by the year 2001 it will be completely eliminated. Because of its critical importance to the development of the Bahamian economy and the welfare of the Bahamian people, the Free National Movement Government is unalterably committed to restoring balance to government finances.
As a result of improved efficiency in revenue collection and expenditure and in consequence of the growth of the Bahamian economy, in the
second term of the FNM Government, real property tax rates will be reviewed with a view to a further reduction on such taxes on owner-occupied residences. In addition to the commitments contained in Manifesto ‘ 92, your FNM Government will:

  • Eliminate the recurrent fiscal deficit by the year 2001.
  • Make Government revenue system simpler and more equitable.
  • Target customs duty reductions to home owners and small and medium size businesses.
  • Make real property tax less burdensome and more equitable by ensuring, across the board, fair and reasonable valuation and reductions.
  • Reduce the Real Property Tax rates payable by home-owners and businesses.
  • Exempt new homeowners from the payment of Real Property Tax for a period of three years following completion of a new owner occupied home.
  • Simplify and reduce Business Licence Fees and improve the processing and enforcement of Business Licences.
  • Continue the simplification of Customs Tariff begun in July, 1996, when the number of Customs Duty rates was reduced from 123 to 29.
  • Further reduce customs duty rates on building materials and home appliances pursuant to the FNM’s policy to encour age and stimulate construction and home ownership.
  • Amalgamate customs duty and stamp tax.
  • Reduce customs duty/stamp tax on non-consumables for tourism, and the agricultural, manufacturing (including printing), light industries and fisheries sectors of the economy.
  • Continue the expansion of tourism and its further extension into the Family Islands with the greatest emphasis being placed on small resort development.
  • Increase the retention of tourism revenue and the value-added to our tourism product by expanding linkages between tourism and the agriculture, fisheries and manufacturing and other sectors of the economy.
  • Grow the economy through the expansion of the financial services sector, including bank and trust, insurance, mutual funds and investment services, and international ship registration.
  • Expand the domestic enterprise sector by linking it to the international sector through the provision of goods and services.
  • Continue to manage the overall economic and budgetary affairs of the nation prudently.

    The implementation of these policies will sustain growth, lay the foundation for a full-employment economy, and ensure that the Bahamian economy is the strongest and most attractive among the small island economies of this Hemisphere, with high living standards for all Bahamians.

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