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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

Energy Minister Delivers Electrifying Keynote Opening Address at CAREC 2026  

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NASSAU, The Bahamas – The Bahamas’ Minister of Energy, Utilities and Aviation, The Honourable JoBeth Coleby-Davis, delivered an electrifying address during the opening ceremony of the 2026 CARILEC Resilient/Renewable Energy Community (CAREC) Conference and Exhibition, being held October 18–22, 2026, at the British Colonial Hotel in Nassau, The Bahamas.

Under the theme “Empowering Progress: Strategic Policy and Planning for the Energy Transition,” the event draws more than 200 industry leaders, policymakers, regulators, and energy professionals committed to advancing practical strategies for sustainable and reliable Caribbean power systems through renewable energy and emerging technologies.

During her address, titled “The New Energy Era: Transforming Policy into Progress,” Minister Coleby-Davis reminded attendees that The Bahamas’ national motto, “Forward, Upward, Onward, Together,” aptly describes what the region’s energy transition demands.

“Empowering Progress speaks directly to our national motto. Not waiting for progress, but creating the conditions that allow progress to happen. Meaningful progress, however, does not occur by accident. It requires vision, sound policy, strategic planning, strong institutions, and the determination to turn decisions into results,” said Minister Coleby-Davis.

Participants acknowledged that small island developing states share similar pressures, compounded by geographical challenges, small electricity markets, ageing infrastructure, geopolitical influences, and the growing threat of severe weather.

Tasked with ushering in a new energy era across the islands while addressing the challenges posed by The Bahamas’ unique archipelagic composition, Minister Coleby-Davis said, “Every island needs a different answer, but the same logic. As an archipelagic nation, we must provide electricity across many islands, each with its own demand and infrastructure needs. Our strategy, therefore, must be national in direction, but responsive to individual communities.”

Restating her Ministry’s three core messages—that energy is an economic and security priority, technology must be viewed as a tool to support strong institutional leadership, and natural gas should be considered a bridge, not a destination—Minister Coleby-Davis reiterated that “progress must now be reflected in functioning infrastructure, effective institutions, and better electricity services: from policy commitments to coordinated implementation, and from fragmented investment decisions to long-term planning.”

Organised by CARILEC and co-hosted by Bahamas Power and Light (BPL) and Grand Bahama Power Company (GBPC), the annual Conference and Exhibition brings together the Caribbean energy community to advance practical solutions to the region’s most pressing energy challenges and accelerate progress towards more resilient, reliable, and sustainable power systems.

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Rosewood Exuma: A precedent-setting case for environmental law and future development in The Bahamas  

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By Eric Carey, ONE Consultants, former Executive Director of the Bahamas National Trust. 

We are facing an extraordinarily important moment in judicial history in The Bahamas as we await a decision on the trial of allegations in the Yntegra group’s Rosewood Exuma project.

As former Minister of the Environment, Romauld Ferreira, put it in the Supreme Court last week: “A lot is at stake…a  great deal of what will be considered in this case sets the stage for what’s to come for future development in the country.”

In the trial of the judicial review of government approvals given to Yntegra for their Rosewood Exuma resort this week, we’ve heard technical arguments about failure to make key environmental documents like Yntegra’s Environmental Impact Assessment and Environmental Management Plan available to the public, failure of key documents to assess some of the most controversial aspects of the project, an unlawful consultation process, and a failure to conduct further consultation following major changes to the development.

Lawyers for Turtlegrass described how there was a “salami slicing” of the project into chunks as a way to circumvent the approvals process and disguise its full impact from public scrutiny. Only certain portions came before the public and key stakeholders like Turtlegrass and Over Yonder Cay for scrutiny, while some of the most controversial aspects did not. This is particularly problematic given what is at stake – the dredging of a beautiful Exuma bay, the North Bay, to transform it into an industrial shipping channel, complete with an enormous seawall, dock, back-of-house facilities and other industrial infrastructure.

It is unfortunate that it has had to come to this – an expensive judicial review process that calls out the government for falling down on its duties to protect the environment and follow the law – but it is important and the broader implications should not be overlooked. When Justice Leif Farquharson rules on this case, he’ll set a precedent that could echo in The Bahamas for years to come, one that answers the question: are the 2019 environmental laws that Ferreira took to parliament after many years of advocacy by environmentalists toothless tigers that are just for decoration – or are they capable of protecting the environment that we all depend on and the rights of those affected by projects to have a genuine say in them?

What is curious is that at the same time as these points are being raised in court as part of the judicial review, we are seeing personal attacks about Bob Coughlin – the person spearheading this legal action and test of environmental laws – by online trolls. Coughlin, an Exuma resident for almost a decade, has long been established as an environmental advocate and a passionate philanthropist – one who has donated almost $4 million to causes in The Bahamas since 2018, including millions to the organisation I once led, the Bahamas National Trust.

For reasons one can only speculate about, these trolls have been trying to make out all sorts of absurd things: that his legal action in support of environmental protection is a petty dispute born out of fears of competition. That Coughlin no longer even wants to pursue his eco-tourism project, when the reality is that he was forced to put it on hold because of the destructive environmental plans that are in dispute. That he is the only one who has an issue with this Rosewood Exuma resort, when in fact, neighbouring resort, Over Yonder Cay – one of the top rated resorts in the Caribbean – as well as the Save Exuma Alliance – consisting of most of the local islands and businesses in the Exuma area, and thousands of petition signers have expressed their concern with the project – over 9,000 to date. Most ironically, they claim, wrongly, that Coughlin received crown land for personal use, when in fact it is Yntegra who received crown land while having no development track record, when Coughlin instead bought his lease on Sampson Cay from a private owner.

The timing of these claims, in the week of the trial, suggest a patronising and cynical attempt to distract from the gravity of the case being heard, what it represents, and how important this decision is. With their simplistic, jingoistic and factually-dubious references to crown land, white foreigners, and the like – it’s not hard to imagine that those involved are engaged in a ploy to push the buttons of Bahamians who they apparently believe can be too easily distracted into ignoring the real issue here: that the government, has – in the words of those in the Supreme Court this week – “run roughshod” over environmental laws with its approvals for Yntegra’s Rosewood Exuma project and that this is truly a landmark case and the decision will have a long-lasting impact on future development. This is at a time when foreign direct investment (FDI) inflows into the Bahamian economy are forecast to increase by as much as two thirds over the next two years, according to the Inter-American Development Bank (IDB).

So I call on my fellow Bahamians to stay focused. This is not a story about one man – it is a story about the future we want for our country and whether we are willing to sacrifice our ability to demand environmental accountability in all developments moving forward. There is too much at stake to be thrown off the track by trolls.

As Ferreira says of the judicial review that now awaits Justice Leif Farquharson’s judgement: “This is the first set of litigation, serious litigation, that takes a deep dive into the Environmental Planning and Protection Act and the environmental impact assessment regulations…There’s a lot at stake here.”

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Monument Supports Hands for Hunger With Paradise Plates Debut  

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NASSAU, Bahamas — Caribbean Wines & Spirits (CWS), The Bahamas’ leading wine and spirits distributor, proudly supported Paradise Plates, Hands for Hunger annual fundraiser with a flavorful offering of its newest product, Monument Beverage Co.

Monument, which launched this July and is available across six major islands, made its Paradise Plates debut. Guests enjoyed three bold flavors: Peach Passion, Ginger-Lime and Melon Fizz as they socialized throughout the evening.

Monument brand ambassadors engaged guests with knowledge on the ready-to-drink beverage’s unique taste and look. Many attendees were delighted to learn that Monument is 100% Bahamian-made and owned and enjoyed seeing the various national landmarks on the packaging.

The booth was adorned with vibrant brand colors, striped arches, tropical florals and a photo worthy backdrop featuring Monument cans filled with florals cascading down the wall.

At the end of the event, the entire Monument inventory had finished, making Monument’s Paradise Plates debut a huge success.

For more details on Caribbean Wines & Spirits, new products and specials, visit www.cwsbahamas.com today.

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