The Tribune Business reported on Wednesday, October 31, 2007 that The Bahamas Government has had to use another $34.54 million to bailout a “number of public corporations”.

A document “seen by The Tribune” apparently reveals that Bahamian taxpayers had to pay almost $60 million dollars to keep Bahamasair, the Water & Sewerage Corporation, the Broadcasting Corporation of The Bahamas (ZNS), and the Hotel Corporation of The Bahamas afloat.

These amounts must be as at June 30, 2007, the governments fiscal year end, as the Central Bank of The Bahamas do not have any information available for 2007 as yet.

If this is the case, one wonders what happened to the great revenue collection and increased revenue being touted on a regular basis by the former PLP administration? Was that all symbolism over substance?

In this article at the Nassau Institute web site, it is painfully obvious that successive governments pay no attention to spending.

The following chart showing government Revenue and Expenditure from 1994 through 2006 emphasises the point rather dramatically. Government income is represented by the blue columns and expenditure is highlighted in the maroon columns. There is not one year between 1994 and 2006 where expenditures were less than income. (Information for graph provided by the Central Bank of The Bahamas).

Click on image to enlarge.

However, in the private sector the corporations named above would have to close as capital resources would run out. But with governments the burden is placed on the current and future taxpayers with more and more borrowing.

Hopefully the new FNM administration realise this and will ensure that government ministries, agencies, departments and corporations adhere to their projections, and if revenue drops because of a slowing economy, budgets will have to be slashed.

Do you think the political will exists or is this all wishful thinking on my part?