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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

Nassau Opens CDB Annual Meeting at Baha Mar This Week

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NASSAU, BAHAMAS — Regional policymakers, development financiers, economists and international partners are converging on Nassau this week as the Caribbean Development Bank (CDB) stages its 56th Annual Meeting at the Baha Mar Resort from June 1-5, 2026.

Held under the theme, “Forging the Caribbean’s Future: Strategic Solutions for Uncertain Times,” the gathering is expected to place The Bahamas at the center of discussions on some of the region’s most pressing challenges, from climate resilience and energy security to debt sustainability and economic growth.

At the launch of the annual meeting on March 19, CDB President Daniel Best underscored the importance of bringing together leaders from across the Caribbean and beyond at a time of global uncertainty.

“The Annual Meeting provides a strategic moment for the Caribbean, an opportunity for our leaders, governments, development institutions, private sector, youth, and international partners to come together to identify practical solutions that can help the Region navigate uncertainty while unlocking the opportunities that lie ahead,” Best said.

The conference host, newly named Bahamas Minister of Finance and Chairman of the CDB Board of Governors, Michael Halkitis, also emphasized the significance of the event during the March 19 launch ceremony.

“Today’s gathering marks more than the start of preparations for an important meeting. It represents the beginning of a renewed conversation about the future of the Caribbean, about our shared aspirations, our common challenges, and the partnerships that will shape the path forward for our region,” Halkitis said.

He added: “Hosting the 56th Annual Meeting of the Caribbean Development Bank here in Nassau provides an important opportunity to strengthen partnerships and advance meaningful dialogue on the future of the Caribbean.”

Over the five-day meeting, delegates will tackle major issues including energy transition and resilienceinnovative debt solutions for Caribbean economies, and the impact of global economic shocks on regional development.

The programme features a number of high-level events including the Youth FIRE Forum, the William G. Demas Memorial Lecture, the President’s Chat titled Financing the Future: MDB Strategies for Uncertain Times, and a series of policy seminars examining climate finance, infrastructure, economic resilience and development lending.

Among the featured participants are CDB President Daniel Best, Finance Minister Michael Halkitis, senior officials from multilateral development banks, regional finance ministers, central bank governors, economists, development specialists and private-sector leaders. The President’s Chat is expected to bring together leaders of major multilateral development banks to discuss financing strategies for developing states facing mounting economic pressures.

The annual meeting also includes sessions branded “EDGE X by CDB: Analytics Unlocked,” which will explore the economic costs of traffic congestion in the Caribbean and how global crises continue to affect regional economies.

The CDB Annual Meeting traditionally attracts representatives from the Bank’s 28 member countries, including government ministers, senior public officials, development agencies, international financial institutions, youth delegates, academics and private-sector stakeholders. Hundreds of delegates are expected to participate in discussions that will help shape development priorities and financing strategies across the Caribbean in the years ahead.

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Afreximbank Annual Meetings Return Next Month; Caribbean Links Remain in Focus

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May 29, 2026 – Two years after The Bahamas made history as the first Caribbean nation to host the African Export-Import Bank’s Annual Meetings, thousands of delegates are expected to gather in Egypt next month for AAM2026.

The 33rd Afreximbank Annual Meetings will be held from June 21-24 in El Alamein, Egypt, under the theme: “Intra-African Trade and Industrialisation: Pathway to Economic Sovereignty.”

The event is regarded as one of Africa’s most important gatherings on trade, investment, finance and economic development, bringing together heads of state, policymakers, business leaders, development finance institutions and international partners.

For Caribbean nations, the meetings hold special significance.

In 2024, The Bahamas welcomed thousands of delegates to Nassau for the landmark event, marking the first time the annual meetings were staged outside the African continent and placing the Caribbean at the center of growing discussions on Africa-Caribbean trade and investment.

Since then, Afreximbank has continued to expand its engagement in the region, promoting stronger commercial ties between Africa and Caribbean countries and exploring opportunities in trade finance, infrastructure development, logistics, investment and private sector growth.

Organizers say this year’s discussions will focus on strengthening intra-African trade, advancing industrialization, building regional value chains and increasing economic resilience amid global uncertainty.

The meetings are also expected to provide a platform for new partnerships, investment opportunities and development initiatives that could have implications beyond Africa, including for Caribbean nations seeking to deepen economic cooperation with the continent.

As leaders prepare to convene in Egypt, the Caribbean’s growing relationship with Afreximbank remains a key part of the institution’s broader vision of expanding trade and investment connections across the Global South.

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UN Reports Ebola Outbreak Expands in DRC; Bahamas Monitors Two Recent Arrivals

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The Bahamas, May 29, 2026 – The Ebola outbreak in the Democratic Republic of the Congo (DRC) continues to expand, with United Nations officials now warning that the disease has spread across multiple eastern provinces and become the third-largest Ebola outbreak on record.

According to the UN Office for the Coordination of Humanitarian Affairs (OCHA), as of May 26 the outbreak had reached 13 health zones in Ituri, North Kivu and South Kivu provinces. More than 1,000 suspected cases have been reported, including 121 confirmed infections and 17 deaths. Six healthcare workers are among those who have died.

The United Nations says humanitarian teams remain actively engaged in treatment, surveillance, community outreach and disease containment efforts. However, the response is being complicated by insecurity, population movement and restrictions affecting the delivery of supplies and personnel.

While the outbreak remains confined to Africa, authorities in The Bahamas recently activated emergency health protocols after two men who had spent time in the Democratic Republic of the Congo arrived at Lynden Pindling International Airport aboard a British Airways flight.

The Ministry of Health confirmed the travelers were isolated after presenting low-grade fevers upon arrival on May 22. Officials later reported that the fevers subsided and neither individual displayed symptoms consistent with Ebola Virus Disease.

The two men, identified as a British national residing in Australia and a French national, were transferred to the Modular Unit at Princess Margaret Hospital for continued monitoring.

Health officials emphasized that there are currently no confirmed Ebola cases in The Bahamas and assessed the risk to the public as low.

Still, the growing outbreak overseas has prompted increased vigilance. Health Minister Dr. Michael Darville said the government is reviewing whether additional travel measures may be necessary for countries affected by the outbreak.

The United Nations this week announced up to US$60 million in emergency funding to support the Ebola response in the Democratic Republic of the Congo and neighboring countries, warning that rapid action remains critical to preventing further spread.

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