Revenue Increase Year-On-Year in Bahamas as Mid-Year Deficit Narrows

• Government revenues in the Bahamas totalled in the first half of FY2025/2026 reached $1.5Bn, up to $66.6Mn compared with the same period last year, as the central government deficit narrowed to $342.4Mn, or 2.1% of GDP, from $367.7Mn, or 2.3% of GDP, in FY2024/2025.
• The Mid-Year Budget Review was delivered in the House of Assembly, where Minister of State in the Office of the Prime Minister Leon Lundy provided an update on revenue and expenditure trends, macroeconomic performance, and fiscal risks. Tax receipts increased by $54.4Mn, or 4.2%, to $1.3Bn, representing 39.1% of the full-year budget target. Expenditure totaled $1.9Bn, up $41.3Mn, or 2.3%, over the same period last year, driven mainly by employee compensation and interest in public debt.
• Minister Lundy noted that data indicate that the central Government recorded a deficit of $342.4Mn, equivalent to 2.1% of GDP, during the first six months of the fiscal year. This represents an improvement compared to the deficit of $367.7Mn, or 2.3% of GDP, recorded in the same period last year.”
• Total expenditure totaled $1.9Bn, an increase of $41.3Mn, or 2.3 %, compared to the same period last year. Recurrent expenditure rose by $42.2Mn to $1.7Bn, driven largely by compensation of employees and interest payments on public debt. Capital expenditure declined slightly by $0.9Mn to $191.7Mn, mainly reflecting reduced payments to private sector partners.
• The Direct Charge on the Government increased by $633.9Mn to $12.4Bn, or 75.1 % of GDP, reflecting borrowing to support fiscal operations and debt management. Key fiscal and macroeconomic risks identified include climate-related events, state-owned enterprise performance, pension liabilities, healthcare pressures, and cybersecurity threats.

(Source: Eyewitness News)