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Source: OPM Communications, Office of the Prime Minister, The Bahamas

Date: April 08, 2025

Contact: OPMcommunications@bahamas.gov.bs

Moody’s Ratings (Moody’s) has updated its outlook on the Government of The Bahamas’ rating to positive from stable and has affirmed the long-term issuer and senior unsecured ratings at ‘B1’. The ratings action reflects the agency’s positive view on The Bahamas’ ongoing fiscal consolidation efforts, which are expected to decrease borrowing requirements, support debt reduction and strengthen the country’s credit profile over time.

Regarding recent fiscal performance, Moody’s notes that The Bahamas “fiscal or financial strength, including its debt profile, has materially increased,” as the country “has demonstrated meaningful fiscal consolidation over the past two years, with the primary balance shifting to a surplus of 2.9% of GDP in fiscal 2024, from a deficit of 1.4% of GDP in fiscal 2022.” Positive performance is expected to continue, with the agency forecasting expanding primary surpluses at 4.5% of GDP for Fiscal Year 2025/26, driven by “higher revenue collection and discipline on the expenditure side.” Undergirding this are ongoing tax compliance efforts and additional revenue from the Qualified Domestic Minimum Top-Up Tax (“QDMTT”), which on its own is expected to increase total revenues by approximately 1% of GDP beginning in Fiscal Year 2025/26.

The improved fiscal position is expected to decrease gross financing needs and ease liquidity pressures, supported by proactive refinancing operations on the external market and bolstered by positive domestic market dynamics. On external refinancing operations, Moody’s pointed out that “efforts to improve the maturity profile of government debt – through measures such as conducting buybacks and refinancing maturing debt with longer-term debt – would demonstrate the government’s capacity to tap diverse external financing sources and would support the credit profile.” Domestically, “the banking system, which is the primary source of domestic financing, maintains ample liquidity, and has demonstrated a willingness to refinance maturing debt at relatively low borrowing costs.”

Regarding The Bahamas’ policy framework, Moody’s notes that the country’s “strong institutional framework and a stable political system,” as well as its “strong track record of policy predictability, transparency and sound macroeconomic policy” are supportive of The Bahamas’ credit profile. 

Looking ahead, Moody’s suggests that a ratings upgrade could materialize “if the government continues to demonstrate a track record of fiscal consolidation, leading to a sustained reduction in government debt and improvement in debt affordability.” Additional measures, such as the execution of buybacks or refinancing operations on external markets and the continued development of domestic markets, would also support an upgrade

Source: Ministry of Finance, The Bahamas

Date: 1 April 2025

 Contact: Financemail@bahamas.gov.bs

The Ministry of Finance is pleased to release its monthly report on Government’s fiscal operations for the month of January 2025, as mandated by the Public Finance Management Act, 2023.

During the review month, revenue receipts totaled $302.1 million, a 4.6 percent improvement from the prior year, of which tax revenue rose by $25.8 million at $279.0 million. Key gains were dominated by value-added tax collections totaling $152.4 million, taxes on international trade and transactions of $69.5 million, and taxes on the use and permission to use goods in the amount of $21.1 million. Non-tax revenue collections totaled $22.9 million with $22.0 million obtained from the sale of goods and services.

Aggregate expenditure settled at $305.9 million, with the recurrent and capital components at $291.4 million and $14.4 million, respectively. The year-over-year decline was largely driven by a reduction of $29.3 million in capital expenditures, primarily resulting from the completion of capital projects that were undertaken in the previous year.

As a result of the above movements, the Government’s overall fiscal position for January 2025 resulted in an estimated deficit of $3.8 million. Financing activities for the month featured an estimated decrease in the outstanding debt stock by $28.6 million. 

The public is encouraged to visit the national Budget Website (www.bahamasbudget.gov.bs) to view all fiscal reports.

Source: Ministry of Finance, The Bahamas

Date: 31 March, 2025

Contact: Financemail@bahamas.gov.bs

Preliminary data on the first half of FY2024/2025 featured an improved revenue performance, aided by enhanced administrative and enforcement measures, and a favorable tourism outturn.

Tax Revenue improved by $122.1 million (10.4 percent) to $1,291.5 million, strengthened by gains in international trade and transactions ($78.8 million to $412.3 million), Value Added Tax collections ($17.1 million to $663.1 million), and taxes on use and permission to use goods ($15.3 million to $63.0 million).

Additionally, non-tax revenue increased by $16.7 million (12.6 percent) to $149.4 million. Receipts were higher for property income by $6.9 million to $21.8 million, and for sales of goods and services, by $10.4 million at $123.3 million.

Expenditure increased by $278.3 million (17.8 percent) to a total of $1,839.1 million, with recurrent and capital expenditures amounting to $1,619.0 million and $220.1 million, respectively. Key drivers of recurrent expenditure included compensation of employees ($434.6 million), use of goods and services ($346.6 million), public debt interest ($335.5 million), and subsidies ($220.4 million). Capital expenditure saw a rise in capital transfers, which grew by $30.9 million, reaching $48.5 million. Additionally, the acquisition of non-financial assets increased to $171.5 million.

As a result of these developments, the deficit grew by $139.3 million (53.9 percent), reaching $398.1 million, which increased from $258.7 million experienced in the previous period.

The public is encouraged to visit the national Budget Website (www.bahamasbudget.gov.bs) to view all fiscal reports.