business@tribunemedia.net
Thursday, February 26, 2026
$5.30 $4.92
Gov’t needs $418m swing to hit Budget surplus goal BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government will need a positive $418m swing during the 2025-2026 fiscal year’s second half to hit its Budget surplus target, it was revealed yesterday, after the amount of ‘red ink’ incurred in the first six months more than doubled over the November-December period. Leon Lundy, minister of state in the Prime Minister’s Office, in presenting what was billed as a ‘mid-year Budget review statement’ to the House of Assembly, disclosed that the deficit for the first six months of the Government’s current fiscal year - measuring by how much its spending exceeds revenue income - totalled $342.4m - a sum equal to 2.1 percent of The Bahamas’ gross domestic product (GDP).
Fiscal deficit stands at $342.4m for year’s first-half ‘Red ink’ more than doubled in November/December Gov’t eyes $130m corporate tax boost; VAT up $76m Mr Lundy, who gave a relatively short briefing in the absence of Prime Minister Philip Davis KC, who is also minister of finance, signalled that this figure represents “an improvement” year-over-year compared to the $367.7m deficit that was incurred at the same half-way mark in the prior 2024-2025 fiscal year. However, his statement did not mention that the current fiscal year’s deficit had more than doubled during the first half’s final two months. The Government’s finances suffered monthly deficits
of $82.9m and $98.6m for November and December respectively, meaning that $181.5m or 53 percent - more than half - of the first first half’s total $342.4m ‘red ink’ was recorded during the final two months (see other article on Page 1B). Potentially more concerning is the fact that the increased November and December deficits were caused by year-over-year revenue reductions, and not just spending increases, with total tax collections - including VAT, Customs duties and
Gov’ts unpaid bills see near-doubling to $242m
expenditure, plus a further $21.562m in arrears, for a total $68.095m. The Water & Sewerage Corporation was shown as owing $38.185m in unpaid invoices, while the Ministry of the Public Service had $18.251m in arrears, and $6.111m in invoices awaiting payment, for a total $24.362m on its books as at year-end December 31, 2025. That, though, represented a major 63.8 percent decrease on the $67.262m that the latter was said to be owing at year-end 2024 - with unpaid invoices having been reduced significantly from the $49.171m outstanding then. Others shown to have built-up significant accounts payables at year-end 2025
BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net UNPAID invoices and arrears owed by the Government increased by 97.6 percent, or almost $120m, year-over-year to hit $241.898m as a year-end 2025, the mid-year Budget disclosed yesterday. Documents tabled in the House of Assembly revealed that sums owed to suppliers, vendors and other purveyors of goods and services to the Government had increased significantly and almost
doubled compared to the $122.425m shown to have been due exactly one year before on December 31, 2024. The 2025 year-end figures showed that close to three-quarters of this sum, or a combined $176.606m worth of unpaid invoices and arrears, were owed by just five government ministries and entities. The one with the largest liabilities was shown to be the Ministry of Works, which commissions and funds largescale infrastructure and public works projects. It was shown as owing $46.327m in unpaid invoices that fall under capital
Liquor operators fret on Physical Planning wait BY ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net LIQUOR store and bar operators are warning that time is running out to obtain the necessary planning approvals so that they can obtain a Business Licence by the March 31 deadline and apply for registration under the industry’s new regulatory regime. Several told Tribune Business they are still awaiting approval from agencies such as the Department of Physical Planning in order to register under the new system even as they prepare for the enforcement of stricter policies surrounding
their location and physical set-up. The Department of Inland Revenue last year unveiled a new process for liquor stores, requiring them to meet a number of requirements including a long-standing policy that they must be no less than 700 feet away from schools, residential neighbourhoods, places of worship and pre-existing rivals. The Government’s tax collection agency is also cracking down on caged takeaway liquor establishments, requiring liquor stores and bars to have an open floor concept. Liquor stores must also be approved by
ALCOHOL - See Page B4
Exuma Chamber backs Yntegra ‘to shape future for generations’ BY FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Exuma Chamber of Commerce as given its backing to the proposed $200 million Rosewood development on Sampson Cay, highlighting employment opportunities and benefits for local businesses. Ehren Hanna, the Chamber’s president, said the project by Miamibased developer, Yntegra Group, has the potential to “shape our economic future for generations” and is expected to create
more than 500 direct jobs during construction and operations. “Most importantly, this proposal is anticipated to create over 500 direct jobs during construction and operations. These are opportunities for our sons and daughters, for skilled tradesmen and women, for hospitality professionals, and for young people seeking meaningful careers without having to leave home,” said Mr Hanna. He added that the Chamber has secured a commitment from the
ADVOCATE - See Page B10
$5.31
Leon Lundy other border levies - down by a collective $82.4m during that two-month period. Should such trends continue, the Government’s ambitions of achieving a first-ever annual Budget surplus of $75.5m this current fiscal year would be in jeopardy. However, Mr Lundy yesterday reiterated that the Davis administration remains confident it can hit its deficit and other fiscal goals as it continues to place faith in the traditionally revenue-rich second half of the fiscal year to produce consistent monthly surpluses - where income exceeds expenditure - that will narrow, if not eliminate, the ‘red ink’ incurred during the first six months. “Despite the first-half deficit, the Government remains on track to meet its full-year fiscal surplus target. Historically, fiscal performance
$5.30
$5.31
Near-$80m revenue fall drives late 2025 Gov’t deficit surge December deficit jumps 126% to almost $100m VAT, key revenue streams off in November too Lundy: Bahamas will beat growth projections BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
were the Public Hospitals Authority (PHA), operator of the Princess Margaret Hospital (PMH), Rand Memorial Hospital and Sandilands Rehabilitation Centre, which was owing $22.609m via a combination of $16.689m in unpaid invoices and $5.919m in arrears. Bahamasair, too, had some $23.355m in outstanding invoices that required paying. The mid-year Budget documents show that, in total, the Government owed $20.993m in invoices classified as recurrent spending; $59.936m in unpaid invoices relating to capital spending; and accumulated collective arrears worth $60.542m, while stateowned enterprises such as the
THE Government sustained significant year-over-year increases in its monthly deficits for November and December 2025, with the latter jumping by 126 percent, driven largely by a combined $79.7m revenue plunge across the period. The Ministry of Finance’s fiscal reports for both months, released yesterday to coincide with the mid-year Budget and published on its international investor relations website but not that targeted at a Bahamian audience, revealed that their combined $181.5m worth of ‘red ink’ accounted for more than 50 percent of the Government’s $342.4m deficit for the first half of its current 2025-2026 fiscal year. The period’s final two months somewhat undid the Ministry of Finance’s earlier work, which had kept the Government’s first-half fiscal deficit relatively contained at $160.9m for the four months through to end-October 2025. The late first-half surge means the Ministry of Finance will have more work to do during the fiscal year’s revenue-rich second half to hit the full-year $75.5m Budget surplus forecast, as it will now require a much larger near-$418m positive swing to meet its targets. However, potentially more concerning is the year-over-year revenue decline in both months and especially for November, which saw tax revenues fall year-over-year by $68.9m or almost 30 percent, while total revenues declined by $64.2m. While December’s revenue drop-off was more modest, both Customs duties and VAT, with the latter accounting for almost 40 percent of the Government’s income for 2025-2026, down in both months.
OWING - See Page B6
INCOME - See Page B10
TAXES - See Page B7