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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

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.

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

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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.

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

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Gardiner Transferred to New York; Mystery of Missed Hearing Now Explained

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The Bahamas, May 29, 2026 – One of the biggest questions surrounding the Jonathan Gardiner case appears to have been answered.

Weeks after reports surfaced that the Bahamian businessman failed to appear for an expected court hearing in Orlando, newly disclosed court records show the hearing never took place because Gardiner elected to have the matter heard in New York, where federal prosecutors are pursuing the case against him.

According to reporting by the Nassau Guardian, U.S. Magistrate Judge Nathan Hill ruled on May 19 that Gardiner was the person named in the federal arrest warrant and ordered that he be transferred to the Southern District of New York.

“…I find that Jonathan Eric Gardiner is the person named in the warrant for arrest…,” Hill wrote.

The judge noted that no preliminary hearing was conducted in Florida because Gardiner chose to have that hearing held in the district where the prosecution is pending.

That district is New York.

Hill ordered that Gardiner “be held to answer in the district court in which the prosecution is pending” and directed the U.S. Marshal’s Office to transport him to the Southern District of New York.

No date for a New York court appearance was disclosed in the order.

The development helps explain confusion that followed reports of a missed Orlando court date and marks the latest chapter in a case that has captured public attention in both The Bahamas and the United States.

Gardiner first came to the attention of U.S. authorities after surviving an Election Day plane crash off the Florida coast. Federal prosecutors have accused him of participating in a cocaine trafficking conspiracy, allegations he is expected to contest in court.

The matter has attracted even greater scrutiny because federal court documents reference an unnamed “Politician 1”, fueling widespread public speculation about the identity of the individual and whether additional disclosures could emerge as the case progresses.

Meanwhile, a separate investigation has uncovered troubling findings about the aircraft involved in the crash.

According to reporting by The Tribune, investigators say the Panamanian-registered aircraft that ditched into waters off Florida on May 12 did not possess a valid certificate of airworthiness and should not have been operating at the time of the flight.

That revelation has added another layer of intrigue to an already extraordinary case involving a dramatic ocean rescue, a federal drug conspiracy prosecution, political speculation and now questions about how an allegedly unairworthy aircraft was carrying passengers between Bahamian islands.

For now, attention shifts to New York, where Gardiner’s next court appearance is expected to provide the first substantive hearing in a case many continue to watch closely.

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

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