Fiscal Responsibility Council Makes Recommendations on Government Debt Projections and PPP Disclosures

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NASSAU , BAHAMAS – The Davis administration is addressing recent public discussion surrounding the Fiscal Responsibility Council’s reviews of the Fiscal Strategy Report and the FY2026/27 Budget.

The report, tabled in Parliament two weeks ago, makes several recommendations when it comes to the government’s debt projections, as well as public-private partnerships and disclosures.

The council is responsible for assessing compliance with general responsibility principles and fiscal objectives, while advising on fiscal and budgetary matters for government.

The council recently released its Fiscal Strategy Report and FY2026/27 Budget Report.

One area the report focused on was the difference between debt projections contained in various government documents.

Halkitis told the House that while the government agrees additional reconciliation between forecasting frameworks would be beneficial, context is important, saying debt projections are generated using different analytical methodologies designed for different purposes.

Michael Halkitis – Minister Of Finance
“The International Monetary Fund’s Debt Sustainability Analysis uses an internationally recognized framework to assess sovereign risk and long-term debt sustainability under alternative scenarios. The Ministry’s debt forecasting model, by contrast, is designed to project the government’s fiscal position, financing requirements, refinancing activities, borrowing plans, debt servicing obligations, and debt portfolio composition over the medium term.”

And it’s not just debt projections.

The report also raised observations when it comes to public-private partnerships, saying there’s a need for enhanced disclosure and reporting of PPP-related obligations.

Michael Halkitis – Minister Of Finance
“This is precisely why, as outlined in my Budget Communication, the Ministry of Finance has engaged MISCA Advisors Ltd. to develop a comprehensive Public-Private Partnership Assessment Framework. This initiative is intended to build upon and modernize the existing PPP framework established in 2018 by strengthening transparency, improving project identification and appraisal processes, refining risk allocation methodologies, and enhancing project approval procedures.”

Halkitis tabled the framework in the House.

So what will it do?

Michael Halkitis – Minister Of Finance
“Taken as a whole, these changes will encourage a more uniform and rigorous application of the PPP Policy throughout the government. They will bring greater certainty to every phase of the process, reinforce accountability and sound fiscal management, and increase public confidence in the delivery of PPP projects.”