Press Release

Source: Ministry of Finance, The Bahamas
Date: 9 April 2026
Contact: Financemail@bahamas.gov.bs

The Ministry of Finance is pleased to release its quarterly report on the Government’s fiscal operations for the first six months of FY2025/2026, as mandated by the Public Finance Management Act, 2023.

The government’s overall fiscal performance for the second quarter of FY2025/26 benefitted from an improvement in revenue performance, when compared with the comparative period in the prior year.

Tax revenue expanded, year-over-year, by $54.4 million (4.2 percent) to $1,345.9 million, for 39.1 percent of the budget. Improved economic conditions, alongside strengthened tax administration measures, supported gains in Value Added Tax collections ($76.1 million), Taxes on Use and Permission to Use Goods ($4.5 million) and Specific Gaming Taxes ($1.3 million). In a significant offset, taxes on international trade and transactions declined by $18.4 million

Growth in non-tax revenue of $11.4 million (7.6 percent) to $160.7 million was largely
attributed to a $14.4 million upturn in receipts from the sale of goods and services.

Aggregate expenditure increased by $41.3 million (2.3 percent) to $1,850.0 million (48.4 percent of the budget), with the recurrent and capital components at $1,658.3 million and $191.7 million, respectively. The $42.2 million rise in recurrent expenditure was mainly attributed to higher spending for compensation of employees ($21.0 million), other payments ($19.9 million) and subsidies ($10.2 million). Capital expenditure decreased by $0.9 million (0.5 percent) to $191.7 million, 51.0 percent of the budget. Higher capital transfers of $5.8 million (22.3 percent) were offset by a $6.7 million (4.0 percent) decrease in outlays for acquisition of non-financial assets.

As a result of these developments, the fiscal deficit for the second quarter narrowed by $25.3 million (6.9 percent) to $342.4 million, equivalent to an estimated 2.1 percent of GDP.

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