News Story

Source: Ministry of Finance, The Bahamas

Date: 23 July 2025

Contact: Financemail@bahamas.gov.bs

The fiscal performance for the third quarter of FY2024/25 featured strong year-over-year improvements in revenue collections, supported by recent policy-based changes alongside enhanced administrative and enforcement measures.

Tax revenue improved by $243.2 million (12.4 percent) to $2,199.3 million – although positioning at 70 percent of the budget. Increased gains in international trade and transactions were boosted by recent changes in departure tax rates ($502.3 million to $627.3 million). Gains were also registered for Value Added Tax collections ($993.9 million to $1,044.7 million), and taxes on use and permission to use goods ($173.4 million to $223.8 million).

Growth in non-tax revenue of $22.8 million (9.7 percent) to $258.2 million, reflected collections of bank surplus fees, property income and the sales of goods and services.

Expenditure increased by $230.8 million (9.6 percent) to $2,636.7 million (73 percent of the budget), with the recurrent and capital components at $2,370.8 million and $266.0 million, respectively. Key drivers of recurrent expenditure included compensation of employees ($649.0 million), use of goods and services ($514.2 million), public debt interest ($447.3 million), and subsidies ($338.0 million). Capital expenditure included gains in capital transfers of $14.7 million, to $55.4 million and outlays for the acquisition of non-financial assets increased by $16.1 million to $210.6 million.

As a result of these developments, the overall deficit narrowed by $35.5 million (16.6 percent), to $178.9 million, from the comparative period in the prior year.

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