The Bahamas - Public finance

The Bahamian government budget receives revenues primarily from import duties (65%), but Hemispheric Free Trade scheduled for 2005 will greatly reduce revenues. The government is looking for other sources of funds, including a restructuring of the banking system. Tourism remains about 60% of GDP.

The US Central Intelligence Agency (CIA) estimates that in 1999/2000 the Bahamas's central government took in revenues of approximately $918.5 million and had expenditures of $956.5 million including capital expenditures of $106.7 million. Overall, the government registered a deficit of approximately $38 million. External debt totaled $381.9 million.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

The Bahamas

Tax revenue 89.1% 818
Non-tax revenue 10.9% 100
General public services 15.2% 145
Defense 2.9% 28
Public order and safety 11.1% 106
Education 19.4% 186
Health 16.2% 155
Social security 6.4% 61
Housing and community amenities 1.0% 9
Economic affairs and services 17.0% 163
Interest payments 10.7% 103
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