Bahamas Government Posts $29.4Mn Fiscal Surplus in May 2025 as Spending Declines Sharply

• The Ministry of Finance reported a $29.4Mn surplus for May 2025, marking a $10.7Mn year-over-year improvement, as reduced government spending more than offset softer revenue collections.
• Preliminary data showed overall revenue slipped 4.3% ($12.2Mn) to $268.2Mn during the month. However, an 8.7% ($22.9Mn) contraction in expenditure to $238.8Mn underpinned the stronger fiscal position.
• Tax receipts grew modestly, up 1.5% ($3.4Mn) to $237.9Mn, led by higher Value-Added Tax (VAT) inflows, which rose $18.7Mn to $119.2Mn. Gains were also recorded in taxes on financial and capital transactions (up $4.4Mn to $11.5Mn) and taxes on use and permission to use goods (up $2.6Mn to $24.0Mn). By contrast, property tax collections fell $11.4Mn to $10.5Mn, as last year’s numbers had been boosted by arrears payments.
• Non-tax revenue saw a steep 34% ($15.6Mn) decline to $30.3Mn, reflecting lower interest and dividend receipts.
• On the expenditure side, recurrent outlays totalled $225.7Mn, down 7.1% ($17.2Mn) from the prior year. Subsidies fell by $8.7Mn to $11.2Mn, while other payments dropped by $9.0Mn to $16.3Mn, largely due to timing differences on insurance premium payments. Capital expenditure decreased by $5.6Mn to $13.1Mn.
• Meanwhile, the government’s debt stock grew by $72.3Mn in May. Borrowings of $224.4Mn were sourced entirely from the domestic market, with repayments of $152.1Mn directed almost exclusively to domestic creditors (99.5%), and the remainder (0.5%) to foreign obligations.

(Source: CariCRIS)