PM Touts Budget Surplus, Says Revenue and Expenditure Up

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NASSAU, BAHAMAS – Prime Minister Philip Davis laid out the country’s fiscal position in this year’s budget communication, as he told parliament there was a budget surplus and also revealing that while revenue and expenditure are up, the government made more than it spent.

The announcement gathered a standing ovation and thunderous applause from parliamentarians as Prime Minister Philip Davis outlined the country’s fiscal position ahead of the 2025/2026 budget year.

This means the government’s revenue surpasses government expenditure, but as the prime minister touted a budget surplus, he also gave notice of a resolution authorizing the finance minister to borrow by way of government loans agreements or line of credit agreements.

Philip Davis – Prime Minister

“Usually, such a resolution is to borrow funds when you are in a deficit, to cover your deficit, but just let me read what this is about. It’s just for the purpose of refinancing.”

Parliamentarians heard that for the first nine months of the year, total revenue increased by $12.2% to $2.5 billion when compared to the year before.

Davis also said the revenue improvement came from a boost in tax revenue among other things.

Philip Davis – Prime Minister

“Taxes on property grew by $27.3 million and totaled $172.9 million, representing 75.2% of the budget target.

Philip Davis – Prime Minister

“VAT receipts expanded by $50.8 million and amounted to $1 billion , accounting for 68.9% of the budget forecast.”

Philip Davis – Prime Minister

“Total expenditure increased by $238.8 million to $2.6 billion during these nine months of the fiscal year. This fulfilled 73% of the budget target.”

In the last fiscal year, the government also spent an additional $30.9 million on capital projects that included road repairs, investment in airport infrastructure, school ground improvements, the acquisition of medical equipment and building resilience in public safety.

Philip Davis – Prime Minister

“Outlays on the compensation of employees, which were increased by $20 million to a total of $649 million, which represents 73% of the budget target.”

Philip Davis – Prime Minister

“Pension and gratuity payments rose by $11.2 million to $148.6 million, accounting for 78.3% of the budget target. Spending on the use of goods and services rose by $82.4 million, amounting to $514.2 million and equating to 74.2% of the budget target.”