Press Release

Source: Ministry of Finance, The Bahamas
Date: February 182026
Contact: Financemail@bahamas.gov.bs

In FY2025/26, revenue collections and expenditure growth yielded significant improvement in the government’s fiscal consolidation performance thus far.

Tax revenue grew by $101.6 million (16.5 percent) to $3,439.2 million, for 20.9 percent ofthe budget. Improved economic conditions, alongside strengthened tax administration
measures, supported increases in Taxes on International Trade and Transactions (8.3 percentto $202.7 million), Value Added Tax collections (20.6 percent to $409.4), and Taxes on Use and Permission to Use Goods (20.5 percent to $34.1 million).

Non-tax revenue expanded by $5.7 million (8.6 percent) to $71.8 million and was largely
attributed to higher receipts from the sale of goods and services ($9.2 million).

Aggregate expenditure increased by $70.6 million (8.2 percent) to $930.7 million (24.4
percent of the budget), with the recurrent and capital components at $803.8 million and
$127.0 million, respectively. Key drivers behind the $ 64.6 million gain in recurrent
expenditure included outlays for use of goods and services ($17.9 million) compensation of employees ($8.9 million) and other payments (28.2 million). Capital expenditure increased by $6.0 million (5.0 percent) to $127 million or 33.7 percent of the budget. This outcome stemmed from increases in the acquisition of non-financial assets of $7.5 million (7.4 percent) to $109.0million.

As a result of these developments, the fiscal deficit narrowed by $36.6 million (20.6 percent), to $141.1 million and converged to an estimated 0.9 percent of GDP.

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