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Bahamas Secures First Budget Surplus Since Independence: PM Davis Touts Milestone for PLP Government

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Deandrea Hamilton

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NASSAU, The Bahamas — In what he described as an historic milestone for the nation, Prime Minister Philip Davis on Wednesday announced The Bahamas’ first budget surplus since gaining independence in 1973. Presenting the 2025/2026 Budget Communication in the House of Assembly, Davis said the fiscal plan reflects the values of his Progressive Liberal Party (PLP) administration and builds on the foundation laid over the past three years.

“For the very first time since Independence, we have finally secured the achievement of a balanced budget—more than a balanced budget—a budget with a surplus,” declared Prime Minister Davis to applause from government benches.

The 2025/2026 national budget, he said, is grounded in the PLP’s Blueprint for Change and focuses on four key policy pillars: Security, Opportunity, Affordability, and Reform.

“Our agenda is focused on national and personal security, economic opportunity through growth and investment, affordability in the face of inflation, and systemic reform of government operations,” Davis stated.

Economic Growth Fuels Revenue Boom

According to the Prime Minister, strong performance across key economic sectors laid the groundwork for this fiscal achievement. The construction sector expanded by 19% in 2024, driven by capital investments and increased imports of building materials. The information and communication sector also rebounded, recording 21.5% growth, thanks to broader adoption of digital technologies.

Perhaps most notably, the agriculture, forestry, and fishing industries posted a 21% increase, signaling the success of government-backed efforts to revitalize domestic food production through targeted agricultural programs and regenerative projects.

This sectoral growth translated directly into improved government revenues. Total revenue for the first nine months of the current fiscal year hit $2.5 billion, up 12.2% or $266.3 million over the previous year. That figure represents 69.4% of the budget’s full-year target.

Tax Receipts Drive Fiscal Turnaround

The lion’s share of the revenue came from taxes, which rose to $2.2 billion—an increase of $243.2 million. Among the standout contributors:

  • Property taxes surged by $27.3 million, mainly from collections on commercial and foreign-owned undeveloped properties—most of which came from non-Bahamians.
  • VAT receipts grew by $50.8 million, totaling $1.0 billion, or 68.9% of the budget forecast. Since the VAT rate was adjusted to 10% in FY2021/2022, receipts have increased by $210.4 million, reflecting both economic resilience and increased consumer activity.
  • Taxes on international trade and transactions rose by $125 million to $627.3 million, aided by a surge in departure tax collections and recent reforms targeting cruise passenger-related levies.

Prime Minister Davis acknowledged, however, that more work remains in VAT compliance on real estate transactions. New measures are expected to close existing loopholes and improve collection in this area.

Non-Tax Revenue and Business Licenses Also Up

Non-tax revenue rose to $258.2 million, driven by higher immigration and customs fees, along with gains in surplus bank fees. Business license receipts and other corporate taxes, particularly from International Business Companies, contributed an additional $48.1 million to the coffers.

Managing Expenditure With Discipline

On the expenditure side, total spending reached $2.6 billion, representing 73% of the budget target. Recurrent expenditure alone stood at $2.4 billion, or 72.5% of the forecast.

Key expenditure increases included:

  • $20 million rise in employee compensation (total: $649 million), partially due to higher National Insurance Board (NIB) contributions.
  • $11.2 million boost in pensions and gratuities (total: $148.6 million).
  • $82.4 million increase in use of goods and services, including $7.1 million earmarked for catastrophic healthcare services.
  • $38.2 million rise in interest payments on public debt (total: $447.3 million), split evenly between foreign and domestic obligations.

The government also maintained strong support for education, with over $70 million in scholarships, university contributions, and grants to independent schools.

A Defining Moment for the Davis Administration

Wednesday’s budget communication marks a political and economic victory for the PLP government, especially as it heads toward the mid-point of its term. The achievement of a surplus and the successful balancing of the budget is a headline accomplishment that the administration will likely tout as evidence of responsible governance and long-term fiscal planning.

“This was not an accident. It was the result of discipline, reform, and vision,” Davis said.

With macroeconomic indicators trending upward and targeted investment continuing in key areas, the Davis administration is positioning itself as the party that not only promises change—but delivers it.

Bahamas News

Where to Draw the Line? TCI and Bahamas Advance Maritime Boundary Talks

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June 16, 2026 – Thirty-four years after formal negotiations began, Turks and Caicos Islands and The Bahamas are still working to define an agreed maritime boundary between the neighbouring archipelagos, a revelation emerging from a recent Turks and Caicos Cabinet summary which has brought renewed attention to a largely overlooked diplomatic and security issue.

A May 2026 Turks and Caicos Cabinet update suggests the long-running negotiations are continuing to advance.  In August 2023, Bahamas Foreign Affairs Minister Fred Mitchell said efforts to draw an exact maritime boundary had been slowed by the challenge of gathering the mapping and locational data required for the exercise.  The United Kingdom, which represents Turks and Caicos in the negotiations, has offered few details beyond confirming that both sides remain committed to maritime boundary delimitation talks.

The negotiations are not centred on a territorial dispute but rather on establishing a legally recognized maritime boundary under international law.  Such agreements help determine jurisdiction over fisheries, maritime resources, law enforcement activities, environmental protection and migration control in the waters between neighbouring countries.

While the discussions focus on the boundary between The Bahamas and Turks and Caicos, the exercise is part of a wider maritime delimitation effort — the process of formally marking and agreeing upon where one country’s waters end and another’s begin.  In comments to The Tribune in August 2023, Mitchell referenced similar boundary considerations involving the United States and Haiti, underscoring the broader regional importance of defining maritime jurisdictions in accordance with international law.

According to public statements from The Bahamas, formal negotiations between the two sides began in 1992 and were followed by technical discussions in 1996.  After years of little public activity, talks resumed in 2023 and have continued through a series of engagements involving legal, maritime, security and geographic information specialists.

The importance of maritime boundaries was underscored by former Bahamas Foreign Affairs Minister Brent Symonette during maritime boundary discussions between The Bahamas and the United States in 2009.  At the time, Symonette described clearly defined maritime borders as essential to national sovereignty, law enforcement, fisheries management, environmental protection and efforts to combat illegal migration.  He also argued that agreed boundaries provide legal certainty and strengthen cooperation between neighbouring countries.

The United Kingdom, which represents Turks and Caicos in the negotiations, has offered few public details beyond confirming its commitment to the process.  However, officials from the Foreign, Commonwealth and Development Office participated alongside TCI representatives during talks held in Nassau in August 2023.  The Turks and Caicos delegation included then Permanent Secretary Wesley Clerveaux, whose responsibilities included Marine Affairs.

At this stage, the TCI Cabinet has only publicly identified the area under discussion as being south of “Point 1.”  Information released by The Bahamas following a 2023 meeting indicates the negotiations concern waters between the southeastern Bahamas and the Turks and Caicos Islands.  While no map has been made public, the available information places the discussions south of Bahamian islands including Mayaguana and Great Inagua.  Exactly where the proposed boundary would meet the Turks and Caicos archipelago remains unclear from public records.

The latest Cabinet update offers no indication of when the negotiations may conclude.  However, after more than three decades of intermittent discussions, recent references by both governments suggest efforts to finally draw the line between the two jurisdictions are continuing.

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CDB Leadership Passes to Belize as Region Eyes New Financing Partnerships  

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By Deandrea Hamilton

 

The Bahamas, June 9, 2026 – The Caribbean Development Bank’s annual gathering may have concluded in The Bahamas, but attention is already turning to Belize as leadership of the institution’s Board of Governors officially changed hands.

At the close of the 56th Annual Meeting in Nassau, outgoing Chairman and CDB Governor for The Bahamas, Michael Halkitis, formally transferred the chairmanship to Belize’s Dr. Hon. Osmond Martinez, continuing the Bank’s tradition of rotating leadership among its regional shareholders.

The handover capped a week of discussions focused on financing development in an increasingly uncertain global environment and strengthening the Caribbean’s ability to withstand economic and climate-related shocks.

One of the meeting’s most closely watched conversations centered on how multilateral development banks can better support vulnerable Small Island Developing States.

During the President’s Chat, titled Financing the Future: MDB Strategies for Uncertain Times, CDB President Daniel Best joined leaders from the OPEC Fund, the Central American Bank for Economic Integration and the Fund for Responding to Loss and Damage to discuss expanding development finance and building resilience.

OPEC Fund President Dr. Abdulhamid Alkhalifa emphasized that development institutions must move beyond responding to crises and instead help countries prepare for them.

“The real test is whether we can help countries move from strategy to implementation, and from implementation to results,” Alkhalifa said.

The discussions reflected a growing regional push for innovative financing solutions as Caribbean nations continue to confront climate vulnerability, infrastructure demands and economic uncertainty.

Beyond discussions on financing and resilience, the Annual Meeting also featured youth engagement activities, including the Youth FIRE Forum, where young Caribbean leaders participated in conversations about innovation, entrepreneurship, leadership and the future of regional development. Senior government officials, development professionals and youth delegates exchanged ideas on the challenges and opportunities facing the next generation, reinforcing a recurring message throughout the conference: that investments made today must ultimately improve opportunities for Caribbean youth tomorrow.

That theme was echoed by Bahamas Prime Minister Philip Davis, who used the opening ceremony to challenge regional leaders to invest in future generations.

“We must invest in the one asset that no agency can ever downgrade, and that no storm can ever wash away: the mind of a Caribbean child,” Davis told delegates.

With Belize now assuming the chairmanship, regional leaders say the focus remains on transforming ideas discussed in Nassau into tangible results for Caribbean people.

Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.

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New GPS Evidence Prompts Fresh Search for Missing American Woman in Abaco

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ABACO, BAHAMAS — Nearly two months after American sailor Lynette Hooker vanished in waters off Abaco, investigators are preparing to conduct a new search based on GPS and navigation data that reportedly challenges the account originally provided by her husband.

The case, which first drew international attention in early April, began when Brian Hooker told authorities that his wife was swept away after falling from an inflatable dinghy during rough conditions in waters near Elbow Cay.

Initial search efforts involving Bahamian and U.S. authorities covered extensive areas of the Sea of Abaco but failed to locate the missing Michigan woman.

Now, according to multiple U.S. media reports, investigators have obtained electronic navigation and GPS data that appears to place the couple’s dinghy in a different location from where searchers initially concentrated their efforts.

The new information has prompted authorities to reopen search operations and seek permission for divers to examine a more targeted area of the Sea of Abaco.

Unlike the broad search that followed Hooker’s disappearance, the renewed effort is expected to focus on a relatively shallow section of water, reportedly about 25 feet deep. Investigators believe the location may offer a better opportunity to recover evidence and potentially answer lingering questions surrounding the disappearance.

The latest development marks a significant shift in the investigation.

What began as a maritime search-and-rescue operation has evolved into a complex multinational investigation involving Bahamian authorities, the United States Coast Guard and the Federal Bureau of Investigation.

Brian Hooker was detained and questioned by Bahamian authorities following his wife’s disappearance but was later released without charges. While investigators have never publicly accused him of a crime, reports indicate he remains a person of interest as authorities continue to examine the circumstances surrounding the case.

Hooker has repeatedly denied any wrongdoing and has maintained that his wife accidentally fell overboard.

The investigation has intensified in recent weeks. U.S. authorities have reportedly seized the couple’s sailboat, Soulmate, transporting the vessel to Florida for forensic examination. Investigators are said to be reviewing onboard electronics, digital records and other potential evidence as part of the ongoing inquiry.

The case has also attracted attention from Lynette Hooker’s family, who have continued to press for answers and support efforts to locate her.

The renewed search comes after Brian Hooker returned to the United States following the disappearance. Reports indicate he cited family reasons, including concerns about his mother’s health, for leaving The Bahamas.

For investigators, however, the focus now appears fixed on the newly identified search area and the electronic evidence that led them there.

Whether the latest operation produces answers remains to be seen. But nearly eight weeks after Lynette Hooker disappeared in the waters of Abaco, authorities believe new technology and new information may finally provide a clearer picture of what happened that night.

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