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Prime Minister Davis Highlights His Government’s Accomplishments, Revenue, During Mid-Year Budget Debate

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#TheBahamas, March 2, 2023  – During his Contribution to the Mid-Year Budget Debate 2023, Prime Minister and Minister of Finance the Hon. Philip Davis said in the House of Assembly, on March 1, 2023, at the mid-year point of the first full-year budget crafted by his Government, it continues to advance the nation’s recovery from multiple crises, at the same time as building an economy that will be “more dynamic and more inclusive”.

Prime Minister Davis said: “We have:

·         Provided affordable housing: Pinecrest and Carmichael Renaissance are just the beginning.

·         Launched a rent-to-own pilot to make home ownership accessible to more Bahamians.

·         Introduced a number of additional measures to address the very significant impact of the global inflation crisis in The Bahamas, including raising the minimum wage, reducing or suspending import duties on a broad range of goods, expanding the list of items subject to price control – and now, increasing enforcement of those price controls, with dozens of new price control inspectors.

·         Amended the NHI Act to provide for catastrophic health care and amended the Mental Health Act to transform and modernize the way this country deals with the issue of mental health.

Upgraded and continue to upgrade a number of health clinics throughout the country. In fact, we plan to upgrade all 91 of them, and we are finalizing plans to construct 2 new hospitals.

·         Installed free WiFi in parks across the country, to ensure wider participation and access to information in this digital age.

·         Recruited hundreds of new Police, Defence Force, and Immigration officers.

·         Upgraded Family Island infrastructure, including polyclinics, airports, seaports, new roads, seawalls and government complexes. We recently opened a government complex in Bimini and a new passport office in Arthurs Town, Cat Island.

·         Expanded the use of solar power generation, as we pursue broader energy sector reform.

·         Opened the Andre Rodgers Stadium, a world class baseball stadium built to Major League standards, highlighting our commitment to “Sports in Paradise” and the orange economy where sports, creative arts and culture will become a significant pillar of the country’s national economy.

·         Made historic investments in agriculture — stakeholders in the food production industry now say that 30 years of ‘blowing smoke’ (on farming) is over, and that self-sufficiency in egg production project is now achievable, thanks to the innovative Golden Yoke programme launched earlier this week. This is part of a major emphasis on food security. The pandemic and the global inflation crisis have only underscored the dangers of continuing to import so much of what we eat. I can’t wait to go to the market and see shelf after shelf with Bahamian-grown and produced food.”

“So you see, we did not come here to defend the status quo, we came here to change it,” Prime Minister Davis added.

Turning his attention to Revenue, in Fiscal Performance, Prime Minister Davis pointed out that the Government’s fiscal deficit for the first half of the fiscal year decreased by $5.3 million when compared to the previous year.  He added that the deficit totaled $276.0 million for the first six-month of the fiscal year, compared to $281.3 million in the prior year.

“In fact, for the first half of this fiscal year, the primary balance reflected a surplus equating $4.9 million, a major variance from the primary deficit of $41.2 million in the previous year,” Prime Minister Davis noted.  “This primary surplus is the first in a very long time.

“When analyzing over 10 years’ worth of data, it is evident that the Government had reoccurring primary deficits each year, for the same time period.”

Prime Minister Davis said that his Government’s revenue performance during the first half of the fiscal year 2022/2023 had improved significantly due to a “vibrant, rebounding economy and strengthened collection efforts”.

“Macroeconomic indicators show persistent demand in the tourism sector with continued growth in visitor activity and occupancy rates in hotels and the home rental market,” he said.  “These factors, and revenue policies and administration strategies, have produced results, with total revenue estimated at $1.3 billion for the first six months of the fiscal year.”

“Total revenue has surpassed the prior year by $124.6 million and stands at 44.9 percent of the budget forecast,” Prime Minister Davis added.  “Compare that to the first six months of the fiscal year 2018/2019, which can be considered the last ‘normal’ fiscal year, when the total revenue collected during this period accounted for 38.2 percent of the budget forecast.

“This administration’s policies to restore the country’s fiscal health are working – and they are working alongside policies to invest in our people and in our future.”

Prime Minister Davis noted that tax revenue totaled $1.1 billion and strengthened by $130.6 million compared to the prior year, of the same period. Compared to the budget forecast, that represented 44 percent of the collection target,” he added.

“Again, it’s worth comparing that 44 percent to the first six months of the fiscal year 2018/2019 — the last ‘normal’ fiscal year — during which the tax revenue collected accounted for 37.0 percent of the budget forecast,” Prime Minister Davis noted.  “There can be no doubt that improved collection of tax liabilities are contributing to these positive results.”

Compared to total tax revenue, Prime Minister Davis noted that Value-Added Tax (VAT) comprised 54.6 percent of the total. For the first six months of the fiscal year, value-added tax totaled $598.8 million, and grew by $54.2 million compared to the prior year, he added.

“To date, VAT accounts for 42.4 percent of the budget forecast,” Prime Minister Davis pointed out.  “The value-added tax collections continue to improve despite the reduction in the nominal VAT rate from 12 percent to 10 percent, which meant that VAT was reduced across a very broad range of goods and services.”

“Despite the period-over-period improvement in the VAT collection, the VAT yield has not reached its full potential,” he added.  “In fact, I believe that this administration can further increase the VAT yield with more compliance efforts.”

Analyzing historical VAT collections in comparison to the forecast, for the first six months of the fiscal year, revealed that in FY2021/2022 VAT equated 58.8 percent of the budget forecast; in FY2020/2021 VAT equated 43.0 percent of the forecast; and in FY2019/2020 VAT equated 52.9 percent of the forecast, Prime Minister Davis pointed out.

“Thus, although VAT collections to-date increased over the prior year, the collection rate in comparison to the budget, for the first half of this fiscal year, is lower than in the last three fiscal years,” he said.  “This same kind of trend was also seen with business license fee collections during the period, in which the actuals underperformed in comparison to the budget forecast.”

“However, this Administration continues to tighten the approach of tax collection via targeted compliance efforts that fall under the Government’s overall revenue strategy to enhance revenue collections, as stated it the FSR 2022,” Prime Minister Davis added.

“With further enhancement to tax compliance measures, we are confident that we can boost tax collections by reducing revenue leakages and loss.”

Prime Minister Davis said that taxes on international trade and transactions improved by $88.5 million relative to the previous year and totaled $314.3 million. That equated 61.8 percent of the budget target, he pointed out.

“Most notable under this tax component was an improvement in departure tax collection by $45.0 million compared to the prior year, totaling $71.5 million,” Prime Minister Davis said.  “To date, departure tax stands at 73.7 percent of the forecast.

“Also, excise duties grew by $37.4 million to total $119.0 million. At the half-year mark, this accounts for 73.7 percent of the budget forecast.”

Prime Minister Davis noted that, another highlight was property tax collection, which increased to $59.5 million, an improvement of $22.7 million when compared to the prior year. That accounted for 35.1 percent of the budget target, he said.

“Property tax collection at end-December 2022 represents the highest amount collected when compared to collections over the last 9 years, for the same period,” Prime Minister Davis said.

“Based on this trend, property tax collections, by the end of this fiscal year, can have the highest yield seen in a long time.”

Prime Minister Davis stated that non-tax revenue understandably had a modest contraction during the first six months of the fiscal year; as iterated in the mid-year statement, in the prior year, non-tax revenues were inflated due to dividend receipts from BTC, the first in a long time.

“Nevertheless, non-tax revenue totaled $160.6 million during the first half of this fiscal year, and compared to the budget forecast, this accounts for 51.9 percent of the budget target,” he said.  “During the period, non-tax revenue improvements were seen in premiums, fees and current claims that increased by $25.2 million.”

 

(BIS Photos/Anthon Thompson)

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Bahamas News

Diamond Stubbs, 17 • Betrica Brown, 19 • Stania Webb, 19 • Fourth victim yet to be identified

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Deandrea Hamilton | Editor

Six road deaths in two days leave a nation searching for answers

NASSAU, The Bahamas – A nation that only days ago celebrated graduations, scholarships and bright futures is now united in grief as six lives were lost on Bahamian roads in just two days, including four young women whose deaths have shaken the country to its core.

The names Diamond Stubbs, 17; Betrica Brown, 19; and Stania Webb, 19 have become the heartbreaking symbol of one of the country’s deadliest road tragedies in recent memory. A fourth young woman, believed to be 18 years old, had not been publicly identified by authorities up to publication time, as families continued to mourn and await official confirmation.

The four were among eight occupants travelling in a gray Mazda when it crashed into a tree on Shirley Street shortly after 1 a.m. Sunday. Police said the 19-year-old driver reportedly struck a pothole, looked back toward his passengers and lost control before the vehicle slammed into the tree. Three young women died at the scene, while a fourth later succumbed to her injuries in hospital. Four others, including the driver, remain hospitalized as investigations continue.

The tragedy’s impact reached the House of Assembly on Monday, where Members observed a moment of silence – led by Prime Minister Philip Davis – in honour of the young women whose lives were cut tragically short.

What has resonated most across the country is not simply how they died, but who they were.

Diamond Stubbs had just graduated from Old Bight High School in Cat Island as valedictorian and head girl. She was preparing to attend Langston University in Oklahoma on scholarship and was remembered by her father as an exceptional student who earned virtually every academic award presented at graduation while inspiring other young people to pursue their dreams.

Betrica Brown, who called both Cat Island and Abaco her homes, had recently travelled to Nassau to secure her student visa. Youth and Sports Minister Mario Bowleg said she was preparing to begin college on a volleyball scholarship.

Stania Webb had already distinguished herself at Langston University, where she earned both President’s List and Honour Roll recognition after graduating from Old Bight High School at just 16 years old. Family members remembered her as a quiet, ambitious young woman deeply committed to her Christian faith and education.

Speaking in Parliament, Prime Minister Philip Davis described the loss as heartbreaking, extending condolences to the families, classmates and loved ones whose lives have been forever changed. He urged Bahamians to keep those still hospitalized and the grieving families in their prayers. Similar expressions of sympathy came from across the political divide, churches, schools and communities throughout the country.

Some residents were also chided for sharing gruesome and graphic photos and video in the hours following the shocking car crash.  Relatives said it made a difficult, heartbreaking time more unbearable.

Condolences poured in from government and Christian ministers; The Bahamas Union of Teachers; The Bahamas Christian council and other leaders from across the islands.

The national tragedy extended beyond New Providence. Also on Sunday, 26-year-old Nica Julien lost her life in a separate traffic collision in Grand Bahama. Then, on Monday, a road traffic accident claimed the life of a 30-year-old man on the highway of Abaco.

Together, the six deaths have transformed what should have been a season of celebration with graduations and independence festivities in play, into one of national mourning, leaving families, communities and an entire country searching for answers—and praying that no more names are added to the list.

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Twist of Timing Shifts Focus in Jonathan Gardiner Case

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The Bahamas, June 26, 2026 – Imagine boarding a plane for another Bahamian island, only for it to crash in U.S. waters during what now appears to have been a remarkable twist of timing.

Jonathan Gardiner’s Election Day flight has dominated headlines for weeks, but Thursday’s decision by a New York federal judge suggests the story may be far bigger than the crash itself.

Gardiner was denied bail after U.S. District Judge Gregory Woods described him as a danger to the community, a significant flight risk and concluded that the government’s evidence is “very strong.”

For many Bahamians, however, the public narrative has remained fixed on the approximately $30,000 recovered after the crash, including an envelope reportedly containing $5,000 intended for an unnamed politician.

Gardiner’s attorneys have argued the cash was legitimate, saying roughly $20,000 had been withdrawn from his business account the day before the flight. They also maintain the prosecution’s case is circumstantial and have argued that his speedy trial rights are being violated.

But prosecutors say the charges stem from a three-year federal investigation into an alleged conspiracy to import cocaine into the United States—not an investigation that began because a plane crashed in Bahamian waters.

That distinction may prove critical.

The crash brought the case into public view, but it may not be what ultimately determines its outcome.

The judge’s ruling raises a question that now deserves greater attention: What evidence from that three-year investigation persuaded a federal judge that the government’s case is “very strong”?

The answer may not lie in the cash recovered after the crash, but in investigative material that has yet to be fully presented in open court.

As the case moves toward trial, Magnetic Media will continue looking beyond the headlines and following the evidence that underpins one of the most closely watched criminal prosecutions involving a Bahamian in recent years.

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He’s Not Dusting Off Yesterday’s Plan… He’s Trying to Rebuild Government  

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By Deandrea Hamilton | Magnetic Media

 

The Bahamas, June 26, 2026 – Just in case you thought Sebastian Bastian, The Bahamas’ first Minister of Innovation and National Development, was about to dust off Vision 2040 and carry on where others left off… think again.

In his maiden Budget Communication on Monday, June 15, Bastian unveiled what amounts to a blueprint to rebuild how the government works.

Not with another glossy vision document.

But with an execution machine.

The clearest indication came when the Minister acknowledged that while Vision 2040 was an important national achievement, it also exposed a weakness.

“So we are changing what we are building. The National Development Plan will no longer be a document we complete and set aside. It will be a living instrument — continuously reviewed, always current, resourced by full-time professionals, and grounded in real data — that shapes how this government, and every government after it, chooses its priorities. A plan is a document. What we are building is an institution.”

It is a remarkable shift in philosophy.

Instead of governments producing national plans every decade, Bastian wants professionals monitoring implementation in real time, measuring progress and ensuring administrations stay focused on delivering what they promised.

To Bastian, national development goes far beyond the roads, airports and buildings Bahamians can see. It also means creating the invisible infrastructure of government — smarter systems, better planning, reliable data, accountability and institutions that survive changes in political administrations.

His speech repeatedly returned to one central idea: government itself has become an obstacle to opportunity.

He described a Family Island entrepreneur waiting weeks or even months for approvals because government systems do not communicate with one another. He spoke of public servants trapped by outdated manual processes instead of serving people. And he highlighted an 18-year-old entering a workforce being reshaped by artificial intelligence before graduation.

As he explained:

“…our job is a practical one: to make government work better, to make The Bahamas easier to do business in, and to make sure our country and our people are ready for what comes next.”

For ordinary Bahamians, he said the objective is simple.

“…a government that is simpler, faster, and far easier to deal with… dealing with your government will get easier, year after year, by design.”

His ministry’s four pillars are ambitious: modernizing government, preparing the nation for artificial intelligence, developing Bahamian talent and driving long-term national development.

Among the initiatives announced were a National Artificial Intelligence Authority, the country’s first AI legislation, a National Digital ID, SmartGov productivity tools for public officers, connected government systems, a National AI Literacy Initiative, an independent National Planning and Development Institute and a Delivery Division dedicated to turning plans into action.

The speech stopped short in one important area.

While Minister Bastian thoroughly explained how government intends to transform itself, he did not establish the measurable targets by which Bahamians can judge whether that transformation is succeeding.

However, he did reveal the next milestone.

Beginning in August, the National Development Plan Secretariat will begin assessing the planning capacity of every ministry and department while establishing a national tracking system before the renewed development plan moves into execution.

With 23 ministries and offices in the Davis administration, Bahamians now have a timeline.

It would not be unreasonable for the public to expect Minister Bastian to return once that assessment is complete with the findings, benchmarks and measurable goals that define success.

After all, the Minister’s own philosophy leaves little room for anything less.

“Delivery does not happen by good intentions — it happens when you build the institutions to carry it: capacity for research and policy thinking; teams dedicated to implementation; structures that demand accountability; systems that measure progress; and continuity that outlives any election cycle.”

If this speech is any indication, Minister Sebastian Bastian is not asking Bahamians to judge him by promises.He is asking to be judged by performance.

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