Gov’t Rakes in 1.5 Billion in Revenue, With 249 Million in Arrears Owed

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NASSAU , BAHAMAS – A snapshot of the fiscal standing was presented by the prime minister on Wednesday in Parliament. 

Our Joshua Williams laid out the government debt against the billion-plus in revenue. 

Here’s a breakdown of the numbers:

In his mid-year budget communication on Wednesday, Prime Minister Philip Davis started with a breakdown of the reported 249.1 million in arrears – monies owed by the government. 

$60.5 million in arrears and payments carried forward from previous fiscal periods

$181.4 million in unpaid invoices from the current fiscal year, which are typically turned around in 90 days.

The state-owned enterprises are the primary reason.

$68.1 million for the Ministry of Works and Family Island Affairs

$24.4 million for the Ministry of the Public Service for office rent and building maintenance.

$12.7 million from the Ministry of Finance for capital projects and car and equipment fees.

$10.0 million from the Department of Information and Communications Technology for network support and cable services.

Philip Davis – Prime Minister

“The government is strengthening commitment controls, improving cash forecasting, and prioritizing structured arrears reduction – all within the broader fiscal consolidation framework to maintain debt sustainability and deficit reduction targets.”

Next was government earnings. 

Preliminary total revenue collections are estimated at $1.5 billion, reflecting a $66.6 million increase over the last period. 

So far, revenue collections have accounted for 38.7 percent of the annual budget target.

Tax revenue collections increased by $54.4 million and stood at $1.3 billion for the first six months of the fiscal year, which represents 39.1 percent of the budget target.

Value-added tax collections, which accounted for 54.9 percent of tax revenues, totaled $739.1 million at the half-year mark.

This represents growth of $76.1 million compared to the same time for the previous year.

Philip Davis – Prime Minister

“That improvement has not been driven by higher rates, but by stronger compliance, more effective enforcement, and better administration across the tax system.”

Then there’s total expenditure performance…

Philip Davis – Prime Minister

“Preliminary recurrent expenditure for the period made up 48.1 percent of the budget target and amounted to $1.7 billion. Recurrent spending increased by $42.2 million year-over-year. “