Finance

Articles 128 to 136

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Articles in this chapter

128.

In briefCreates the Consolidated Fund, the Government's main account, into which all public revenues are paid unless a law says otherwise.

There shall be in and for the Bahamas a Consolidated Fund, into which, subject to the provision of any law for the time being in force in The Bahamas, shall be paid all revenues of The Bahamas.

There must be a Consolidated Fund (the Government's main account) in and for The Bahamas. All revenues of The Bahamas must be paid into it, subject to any law in force in The Bahamas at the time.

Consolidated FundThe Consolidated Fund

129.

In briefThe Minister of Finance must prepare yearly estimates of revenue and spending and lay them before the House of Assembly.

(1)

The Minister of Finance shall, before the end of each financial year, cause to be prepared annual estimates of revenue and expenditure for public services during the succeeding financial year, which shall be laid before the House of Assembly.

Before the end of each financial year, the Minister of Finance must have annual estimates prepared of revenue and of spending on public services for the following financial year, and these must be laid before (formally presented to) the House of Assembly.

(2)

The estimates of expenditure shall show separately the sums required to meet statutory expenditure (as defined in Article 130(7) of this Constitution) and the sums required to meet other expenditure proposed to be paid out of the Consolidated Fund.

The estimates of spending must show separately the sums needed for statutory expenditure (spending already required by law, as defined in Article 130(7) of this Constitution) and the sums needed for other spending proposed to be paid out of the Consolidated Fund (the Government's main account).

EstimatesAnnual estimates

130.

In briefPublic spending each financial year must be authorised by an Appropriation Act, with rules for supplementary and final appropriations and for statutory expenditure.

(1)

The Minister of Finance shall, in respect of each financial year, at the earliest convenient moment before the commencement of that financial year, introduce in the House of Assembly an Appropriation Bill containing, under appropriate heads for the several services required, the estimated aggregated sums which are proposed to be expended (otherwise than by way of statutory expenditure) during that financial year.

For each financial year, the Minister of Finance must introduce in the House of Assembly, at the earliest convenient moment before that financial year begins, an Appropriation Bill (a bill authorising public spending). The bill must set out, under appropriate headings for the various services needed, the estimated total sums proposed to be spent during that financial year, other than statutory expenditure (spending already required by law).

(2)

Subject to paragraphs (4) and (6) of this Article, the sums set out in the Appropriation Act in respect of a financial year shall represent the limit and extent of the public expenditure for that financial year.

Subject to paragraphs (4) and (6) of this Article, the sums set out in the Appropriation Act for a financial year are the limit and extent of public spending for that financial year.

(3)

Where any sum is set out in the Appropriation Act in respect of a financial year and at the end of that year there is an unexpended balance of that sum, the unexpended balance shall lapse.

If any sum set out in the Appropriation Act for a financial year has not been fully spent by the end of that year, the unspent balance lapses (can no longer be spent).

(4)

The Minister of Finance may, in case of necessity, from time to time cause to be prepared supplementary estimates of expenditure which shall be laid before and voted on by the House of Assembly.

When necessary, the Minister of Finance may from time to time have supplementary estimates of spending prepared. These must be laid before and voted on by the House of Assembly.

(5)

In respect of all supplementary expenditure voted on by the House of Assembly in pursuance of paragraph (4) of this Article, the Minister of Finance may, at any time before the end of the financial year, introduce into the House of Assembly a Supplementary Appropriation Bill containing, under appropriate heads, the aggregate sums so voted and shall, as soon as possible after the end of each financial year, introduce into the House of Assembly a final Appropriation Bill containing any such sums which have not yet been included in any Appropriation Bill.

For all supplementary spending voted by the House of Assembly under paragraph (4) of this Article, the Minister of Finance may, at any time before the end of the financial year, introduce in the House of Assembly a Supplementary Appropriation Bill setting out, under appropriate headings, the total sums voted. As soon as possible after the end of each financial year, the Minister must introduce in the House of Assembly a final Appropriation Bill containing any such sums that have not yet been included in any Appropriation Bill.

(6)

That part of any estimate of expenditure laid before the House of Assembly which shows statutory expenditure shall not be voted on by the House, and such expenditure shall, without further authority of Parliament, be paid out of the Consolidated Fund.

The part of any spending estimate laid before the House of Assembly that shows statutory expenditure is not voted on by the House. That spending is paid out of the Consolidated Fund (the Government's main account) without any further authority from Parliament.

(7)

For the purposes of this Article and Article 129 of this Constitution-

For the purposes of this Article and Article 129 of this Constitution:

(a)

"financial year" means any period of twelve months beginning of 1st January in any year or such other date as Parliament may prescribe; and

"financial year" means any period of twelve months beginning on 1st January in any year, or on any other date that Parliament sets; and

(b)

"statutory expenditure" means expenditure charged on the Consolidated Fund or on the General revenues and assents of the Bahamas by any provisions of this Constitution or of any other law for the time being in force in The Bahamas.

"statutory expenditure" means spending charged on the Consolidated Fund or on the general revenues and assets of The Bahamas by any provision of this Constitution or of any other law in force in The Bahamas at the time.

Authority for public expenditureAuthority for public spending

131.

In briefMoney can leave the Consolidated Fund only on a warrant signed by the Minister of Finance or by someone the Minister authorises in writing.

No sum shall be paid out of the Consolidated Fund except upon the authority of a warrant under the hand of the Minister of Finance or under the hand of some person authorized by him in writing; and sums so issued shall be disposed of for meeting public expenditure authorized under Article 130 of this Constitution or, in the case of statutory expenditure, for the purposed appointed by law.

No sum can be paid out of the Consolidated Fund (the Government's main account) except on the authority of a warrant (a written payment order) signed by the Minister of Finance or by a person the Minister has authorised in writing. Sums paid out in this way must be used to meet public spending authorised under Article 130 of this Constitution or, in the case of statutory expenditure (spending already required by law), for the purposes set by law.

Withdrawal of money from the Consolidated FundTaking money out of the Consolidated Fund

132.

In briefIf the Appropriation Bill is not in force when the financial year starts, the Minister of Finance may authorise spending to keep public services running.

Where at any time for any justifiable reason, the Appropriation Bill in respect of any financial year has not come into operation by the beginning of that financial year, the Minister of Finance may, to such an extent and subject to such conditions as may be prescribed, or if no conditions have been prescribed on a resolution to that effect passed by the House of Assembly, issue a warrant for the payment out of the Consolidated Fund or other public funds of The Bahamas of such sums as he may consider necessary for the continuance of the public service, but a statement of the sums so authorized shall, as soon as practicable, be laid before and voted on by the House of Assembly and the aggregate sums so voted shall be included, under the appropriate heads, in the next Appropriation Bill immediately following.

If, for any justifiable reason, the Appropriation Bill for a financial year has not come into force by the start of that financial year, the Minister of Finance may issue a warrant (a written payment order) for payment out of the Consolidated Fund (the Government's main account) or other public funds of The Bahamas of the sums the Minister considers necessary to keep the public service running. The Minister may do this to the extent and on the conditions set by law or, if no conditions have been set, on a resolution of the House of Assembly to that effect. A statement of the sums authorised in this way must be laid before and voted on by the House of Assembly as soon as practicable, and the total sums voted must be included, under the appropriate headings, in the next Appropriation Bill that follows.

Withdrawal of money in advance of Appropriation ActSpending before the Appropriation Act is passed

133.

In briefParliament may create a Contingencies Fund from which the Minister of Finance can advance money for urgent spending that was not foreseen.

(1)

Parliament may by law provide for the establishment of a Contingencies Fund and may authorize the Minister of Finance to make advances from that Fund if he is satisfied that there is an unforeseen need for expenditure for which no provision or no sufficient provisions has been made by an Appropriation Act.

Parliament may by law set up a Contingencies Fund (a reserve for unexpected needs) and may authorise the Minister of Finance to make advances from that Fund if the Minister is satisfied that there is an unforeseen need for spending for which an Appropriation Act has made no provision or not enough provision.

(2)

Where any advances are made by virtue of an authorization conferred under paragraph (1) of this Article, a supplementary estimate of the sums required to replace the amount so advanced shall, as soon as practicable, be laid before and voted on by the House of Assembly and the sums so voted shall be included in a Supplementary Appropriation Bill or a Final Appropriation Bill.

When advances are made under an authorisation given under paragraph (1) of this Article, a supplementary estimate of the sums needed to replace the amount advanced must be laid before and voted on by the House of Assembly as soon as practicable, and the sums voted must be included in a Supplementary Appropriation Bill or a Final Appropriation Bill.

Contingencies FundContingencies Fund

134.

In briefThe public debt, and the costs of servicing and managing it, are charged on the Consolidated Fund.

The Public Debt of the Bahamas, including the interest on the debt, sinking fund payments and redemption monies in respect of that debt and the costs, charges and expenses incidental to the management of that debt, is hereby charged on the Consolidated Fund.

The Public Debt of The Bahamas is charged on (must be paid from) the Consolidated Fund (the Government's main account). This includes interest on the debt, sinking fund payments (money set aside to repay the debt) and redemption money for that debt, and the costs, charges and expenses of managing that debt.

Public debtPublic debt

135.

In briefSalaries of the Governor-General, judges, the Auditor-General and Commission members are charged on the Consolidated Fund and cannot be cut after appointment.

(1)

There shall be paid to the holders of the offices to which this Article applies such salaries and allowances as may be prescribed by or under any law.

The holders of the offices this Article applies to must be paid the salaries and allowances set by or under any law.

(2)

The salaries payable to the holders of the offices to which this Article applies are hereby charged on the Consolidated Fund.

The salaries payable to the holders of the offices this Article applies to are charged on (must be paid from) the Consolidated Fund (the Government's main account).

(3)

The salary and allowance payable to the holder of any office to which this Article applies and his other terms of service shall not be altered to his disadvantage after his appointment, and, for the purposes of this paragraph, in so far as the terms of service of any person depend upon the option of that person, the terms for which he opts shall be taken to be more advantageous to him than any other terms for which he might have opted.

The salary and allowances payable to the holder of any office this Article applies to, and their other terms of service, cannot be changed to their disadvantage after their appointment. For this purpose, where a person's terms of service depend on a choice that person makes, the terms they choose are treated as more favourable to them than any other terms they could have chosen.

(4)

This Article apples to the office of Governor-General, Justice of the Supreme Court, Justice of Appeal, Auditor-General and member of any Commission established by Chapter VIII of this Constitution or of the Public Service Board of Appeal.

This Article applies to the offices of Governor-General, Justice of the Supreme Court, Justice of Appeal, Auditor-General, and member of any Commission set up by Chapter VIII of this Constitution or of the Public Service Board of Appeal.

Remuneration of Governor-General and certain other officersPay of the Governor-General and certain officers

136.

In briefCreates the Auditor-General, who independently audits public accounts and reports to the House of Assembly, and sets how the Auditor-General can be removed.

(1)

There shall be an Auditor-General whose office shall be a public office.

There must be an Auditor-General, whose office is a public office.

(2)

The Auditor-General shall be appointed by the Governor-General, by instrument under the Public Seal, acting on the recommendation of the Public Service Commission made after the Commission has consulted the Prime Minister.

The Governor-General appoints the Auditor-General by instrument (a formal written document) under the Public Seal, acting on the recommendation of the Public Service Commission made after the Commission has consulted the Prime Minister.

(3)

The accounts of the Supreme Court, the Senate, the House of Assembly, all departments and offices of the Government (but excluding the Department of the Auditor-General), the Public Service Commission, the Judicial and Legal Service Commission, the Police Service Commission and all Magistrates' Courts shall, at least once in every year, be audited and reported on by the Auditor-General who, with his subordinate staff, shall at all times be entitled to have access to all books, records, returns and reports relating to such accounts.

At least once every year the Auditor-General must audit and report on the accounts of the Supreme Court, the Senate, the House of Assembly, all departments and offices of the Government (except the Department of the Auditor-General), the Public Service Commission, the Judicial and Legal Service Commission, the Police Service Commission and all Magistrates' Courts. The Auditor-General and their staff are entitled at all times to have access to all books, records, returns and reports relating to those accounts.

(4)

The Auditor-General shall submit his reports made under paragraph (3) of this Article without undue delay to the Speaker (or, if the office of Speaker is vacant or the Speaker is for any reason unable to perform the functions of his office, to the Deputy Speaker) who shall cause them to be laid before the House of Assembly without undue delay.

The Auditor-General must submit the reports made under paragraph (3) of this Article without undue delay to the Speaker (or, if the office of Speaker is vacant or the Speaker is for any reason unable to do the job, to the Deputy Speaker), who must have them laid before the House of Assembly without undue delay.

(5)

In the exercise of this functions under the provisions of paragraphs (3) and(4) of this Article, the Auditor-general shall not be subject to the direction or control of any other person or authority.

In carrying out the functions in paragraphs (3) and (4) of this Article, the Auditor-General is not subject to the direction or control of any other person or authority.

(6)

The accounts of the department of the Auditor-General shall be audited and reported on by the Minister of Finance and the provisions of paragraphs (3) and (4) of this Article shall apply in relation to the exercise by that Minister of those function as they apply in relation to audits and reports made by the Auditor- General.

The accounts of the Department of the Auditor-General are audited and reported on by the Minister of Finance. Paragraphs (3) and (4) of this Article apply to the Minister carrying out those functions in the same way as they apply to audits and reports by the Auditor-General.

(7)

Nothing in this Article shall prevent the performance by the Auditor-General of-

Nothing in this Article prevents the Auditor-General from carrying out:

(a)

such other functions in relation to the accounts of the Government and that accounts of other public authorities and other bodies administering public funds in The Bahamas as may be prescribed by or under any law for the time being in force in The Bahamas; or

any other functions relating to the accounts of the Government and the accounts of other public authorities and other bodies that manage public funds in The Bahamas, as set by or under any law in force in The Bahamas at the time; or

(b)

such other functions in relation to the supervision and control of expenditure form public funds in The Bahamas as may be so prescribed.

any other functions relating to the supervision and control of spending from public funds in The Bahamas, as set by such a law.

(8)

The Auditor-General may be removed from office only for inability to discharge the functions thereof (whether arising form infirmity of mind or body or any other cause) or for misbehavior, and shall not be so removed except in accordance with the provisions of paragraph (9) of this Article.

The Auditor-General can be removed from office only for inability to do the job (whether because of mental or physical infirmity or any other cause) or for misbehaviour, and only by following the procedure in paragraph (9) of this Article.

(9)

The Auditor-General shall be removed from office by the Governor-General if the question of his removal from office has been referred to a tribunal appointed under paragraph (10) of this Article and the tribunal has recommended to the Governor-General that he ought to be removed from office for inability as aforesaid or for misbehavior.

The Governor-General must remove the Auditor-General from office if the question of removal has been referred to a tribunal appointed under paragraph (10) of this Article and the tribunal has recommended to the Governor-General that the Auditor-General ought to be removed from office for inability as described above or for misbehaviour.

(10)

If the Prime Minister represents to the Governor- General that the question of removing the Auditor-General from office for inability as aforesaid or for misbehavior ought to be investigated, then-

If the Prime Minister tells the Governor-General that the question of removing the Auditor-General from office for inability as described above or for misbehaviour ought to be investigated, then:

(a)

the Governor-General shall appoint a tribunal, which shall consist of a chairman and not less than two other members, selected by the Governor-General, acting in accordance with the advice of the Judicial and Legal Service Commission, from among persons who hold or have held or are eligible to hold high judicial office; and

the Governor-General must appoint a tribunal made up of a chairman and at least two other members, chosen by the Governor-General acting on the advice of the Judicial and Legal Service Commission from among people who hold, have held or are eligible to hold high judicial office; and

(b)

the tribunal shall inquire into the matter and report on the facts thereof to the Governor-General and recommend to the Governor-General whether the Auditor-General ought to be removed from office for inability as aforesaid or for misbehavior.

the tribunal must look into the matter, report the facts to the Governor-General and recommend whether the Auditor-General ought to be removed from office for inability as described above or for misbehaviour.

(11)

If the question of removing the Auditor-general form office has been referred to a tribunal under paragraph (9) of this Article, the Governor-General, acting in accordance with the advice of the Public Service Commission, may suspend the Auditor-general from performing the functions of this office and any such suspension may at any time be revoked by the Governor-General, and shall in any case cease to have effect if the tribunal recommends to the Governor-General that the Auditor-General should not be removed from office.

If the question of removing the Auditor-General from office has been referred to a tribunal under paragraph (9) of this Article, the Governor-General, acting on the advice of the Public Service Commission, may suspend the Auditor-General from performing the duties of the office. The Governor-General may lift the suspension at any time, and in any case it ends if the tribunal recommends to the Governor-General that the Auditor-General should not be removed from office.