Government Forecasts Lower Surplus for 2026/2027 Fiscal Year

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NASSAU, BAHAMAS – Before the presentation got underway, a long standing tradition continued, as members of the Davis administration walked into Parliament with the red briefcase containing the national budget.

A major focus of this year’s presentation is the government’s projected surplus, where according to Minister of Finance, Michael Halkitis, the numbers are backed up.

Figures from July 2025 to March 2026 show government collected $2.5 billion dollars in revenue, equivalent to 65.3% of the full year budget target – a 3% increase compared to the same period last year.

Tax revenue totaled $2.3B, with Value Added Tax receipts reaching $1.1B, along with gaming taxes generating $30.9M.

Michael Halkitis – Minister of Finance

“This out turn points to a generally stable position in revenue, although performance across individual revenue categories was mixed.”

That “mixed” performance refers to decreases in property taxes collected, financial and capital transactions, and international and trade transactions.

Now, looking at expenditure last year, government spent $2.7B, while $2.4B went toward recurrent expenditure.

Then, capital expenditure totaled $271.7M.

Meanwhile, payments on public debt reached $452 million – a 1% increase year over year.

Michael Halkitis – Minister of Finance

“This level of expenditure remained broadly consistent with the normal execution of the budget.”

“It also reflects the government’s ongoing obligations in relation to public service delivery, debt servicing, and the implementation of programmes prioritized throughout the year.”

The deficit stood at $157.5M by the end of March 2026, or 0.9 percent of GDP, however government still reported a primary surplus of $294.5M.

Then there’s the national debt, where central government’s debt now stands at at $12.5B, external debt at $5.4B, while domestic debt totals $7.1B.

Gross borrowings during the nine months in the fiscal year amounted to $2.5B, while our debt repayments totaled $1.8B,

Then looking ahead to the upcoming fiscal year, government is projecting total revenue of $4.4B dollars, with expenditure estimated at $4.1B.

The finance minister calls Fiscal Year 2026/2027 a “lower surplus” year.

Now, debate on the budget is expected to begin when the house returns on June 8th.