Bahamas Reports Fiscal Surplus as Opposition Slams Social Spending Cuts

• The Government of Bahamas recorded a $58.60Mn fiscal surplus in February 2025, a nearly nine-fold increase over the $6.90Mn surplus posted in the same month last year, according to preliminary data released by the Ministry of Finance in its monthly fiscal summary report for February.
• The stronger performance was driven by a 20.8 % rise in revenue, which totaled $292.90Mn for the month, and a slight decline in overall spending, which fell by 0.5 % to $234.40Mn. Tax revenue continued to anchor the Government’s income stream, growing by 14.1 % year-over-year to reach $241.10Mn.
• Value-added tax (VAT) collections rose by $11.50Mn to $103.20Mn, buoyed by increased activity in the domestic goods and services sector. Non-tax revenue surged by 66.5 %, or $20.70Mn, to $51.80Mn, primarily because of higher dividends and surplus fees collected from the banking sector.
• On the expenditure side, recurrent outlays rose modestly by 2.6 % to $220.90Mn. This included a $9Mn increase in subsidies, which totaled $32.50Mn for the month, and a $3Mn rise in the use of goods and services, now at $57.20Mn. Public debt interest payments declined by $2.50Mn to $23.10Mn.
• However, social assistance and pension payments fell by $4.90Mn to $18.30Mn. Capital expenditure also increased from $6.80Mn to $13.40Mn in February. Meanwhile, the Government’s overall debt increased by an estimated $28.70Mn during the period.
• While the monthly numbers showed fiscal improvement, Opposition Shadow Finance Minister J. Kwasi Thompson criticized the broader direction of government spending, pointing to what he called a troubling $9.60Mn cut to social assistance over the first eight months of the fiscal year.

(Source: EYEWITNESS News)