NASSAU, Bahamas, CMC – The Bahamas government said Tuesday the local economy continues to be “adversely affected’ by the global economic and financial crisis and that revenues to the end of October had slumped by US$8.8 million from the original budgetary estimates.

Prime Minister Hubert Ingraham, speaking on a Supplementary Appropriation Bill for funding of the Temporary Employment Programme (TEP) and  contractural payments to various public sector unions and minor capital works, said the decline recorded in October represented an improvement over the shortfall from Budget recorded a month earlier of US$30.7 million.

He said “one-off” inflows into November have resulted in a surplus over budget amounting to nearly US$40 million “although the enduring underlying weakness will likely make the surplus transitory”.

Ingraham said that the most significant decreases were recorded in respect of Stamp Taxes at US$21.1 million, reflecting lower realty transactions and mortgages, and Import Duties at US$17.6 million.

The Prime Minister told legislators that the two Supplementary Appropriations Bills seek authorisation for recurrent expenditure of approximately US$24 million on the Recurrent Account and US$2.5 million on the Capital Account.

“These two Supplementary Appropriations Bills will fund a number of essential small infrastructural projects which will in addition to meeting genuine needs in our communities provide support for continued employment and create new employment opportunities in the construction sector.”

He said the TEP is designed to create 2,500 direct jobs for a six month period in the first instance and that that US$13.65 million would be needed weekly to meet their salaries.

The Prime Minister said an additional US$737,000 will be incurred in connection to National Insurance Board (NIB) employer contribution payments, bringing the total public purse to US$14.3 million.

“The purpose of the programme is to provide employment, training and or income for some unemployed persons.  The programme is temporary because The Bahamas cannot afford to make it permanent.”

He said employment under the programme is to be designed as project specific with set start and end dates and that all participants will be advised that they will not become full time government employees at the conclusion of their project.

“This notwithstanding, it is possible that an individual’s performance on the job could assist in gaining permanent employment either in the public or in the private sector in the future.”

During his presentation, Ingraham said that in the first four months of the 2009/10 fiscal year, Recurrent Expenditures amounted to US$485.3 million, or 32 per cent of estimated expenditures for the entire fiscal year.

He said that while it represented an increase of only US $7 million or 1.5 per cent from the level of Recurrent Expenditures during the first four months of the 2008/09 fiscal year, Recurrent Expenditures so far in 2009/10 are down in a number of areas.