National

Govt. Predicts Fiscal Surplus Despite $342.4M Deficit for First Half of the Fiscal Year

NASSAU, BAHAMAS – Leon Lundy revealed that the budget deficit stood at more than $300 million for the first half of the fiscal year, and insisted Government remains on track to meet its full-year fiscal surplus.

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1 hour ago

February 25, 2026

Delvardo Emmanuel

NASSAU , THE BAHAMAS – The Davis Administration gave itself a pat on the back when it comes to the country’s finances, describing it as trending in the right direction.

The assessment was outlined by the Parliamentary Secretary in the Office of the Prime Minister, Leon Lundy, who tabled the Government’s Mid-Year Budget Review.

Lundy also revealed that the budget deficit stood at more than $300 million for the first half of the fiscal year, and insisted Government remains on track to meet its full-year fiscal surplus.

Our Delvardo Emmanuel sat through Wednesday’s session and told us more in this report.

A mid-year check-in on the country’s finances, and according to Government officials, the numbers are improving.

Parliamentary Secretary in the Office of the Prime Minister Leon Lundy told the House of Assembly on behalf of Minister of Finance and Prime Minister Philip Davis, who was out of the country attending a CARICOM meeting in St. Kitts, that The Bahamas continues to see steady economic growth.

According to the Mid-Term Budget Review, real GDP grew by 3.4 percent in 2025, and the International Monetary Fund is projecting 2.8 percent growth in the following year.

Leon Lundy – Parliamentary Secretary, OPM

“Supported by construction activity and continued strength in cruise tourism. Madam Speaker, we have made unprecedented investments in our country and in our people. And we believe these investments in infrastructure, in digital connectivity, in energy, and in skills, training and education will fuel robust economic growth.”

The not-so-good news is that preliminary data indicates the Central Government recorded a deficit of $342.4 million, equivalent to 2.1 percent of GDP, during the first six months of the fiscal year.

That compares to a deficit of $367.7 million, or 2.3 percent of GDP, during the same period last year.

Total revenue amounted to $1.5 billion, reflecting growth of $66.6 million relative to the prior year.

Leon Lundy – Parliamentary Secretary, OPM

“This performance reflects continued economic activity and strengthening compliance efforts across major revenue categories. Total expenditure totaled $1.9 billion, an increase of $41.3 million or 2.3% compared to the same period last year. Recurrent expenditure rose by $42.2 million to $1.7 billion, driven largely by compensation of employees and interest payments on public debt. Capital expenditure…”

He said despite the first-half deficit, the Government remains on track to meet its full-year fiscal surplus target.

Leon Lundy – Parliamentary Secretary, OPM

“As a result of net borrowing activities, the direct charge on the Government increased by $633.9 million to $12.4 billion, representing 75.1% of GDP.

At the end of December 2025, this outcome reflects financing required to support fiscal operations and debt management activities during this period.”