business@tribunemedia.net
TUESDAY, AUGUST 26, 2025
$5.48 $5.09
$5.50
$5.48
$5.48
Gov posts $29.4M May surplus but trails $70M behind fiscal goal By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Government posted a $29.4 m surplus in May 2025, but remains more than $70 m off its full-year fiscal target. The Ministry of Finance, in its latest fiscal report, said the May surplus marked a $10.7 million improvement over the same month last year, driven largely by reduced government spending. However, with April’s deficit revised upward and the yearto-date shortfall still well above target, the pressure is mounting for the Government to rein in its finances before the fiscal year closes. “Preliminary data on the fiscal outturn for May 2025 showed an estimated surplus of $29.4 m— an improvement of $10.7 m from the prior year,” said the report. “In the underlying developments, the 4.3 percent ($12.2 m) reduction in revenue receipts to $268.2 m was offset by a 8.7 percent ($22.9 m) decrease in spending to $238.8 m.” To meet the $69.8 m deficit cap set for the 2024/2025 fiscal year, the Davis administration
t (PWFSONFOU TQFOEJOH DVU CZ OFBSMZ OJOF QFSDFOU t 6QXBSE SFWJTJPO XPSTFOT "QSJM EFmDJU QFSGPSNBODF t 0QQPTJUJPO TMBNT BENJOJTUSBUJPO PWFS XJEFOJOH mTDBM HBQ must now produce a $71.7 m surplus in June — a month that traditionally sees increased spending as ministries and departments rush to settle outstanding obligations The report also confirmed that April’s fiscal performance had been revised downward. An earlier-reported $2.1 m deficit was adjusted to $4.4 m, more than doubling the original figure. During his 2024/2025 budget contribution Prime Minister, Philip Davis forecasted a $135.4m surplus for the month of April. That estimate was met with sharp criticism from the Opposition when the Ministry later reported the month closed with a deficit — a figure now revealed to be even worse than initially reported.
Educators’ union walks out as industrial dispute deepens By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Bahamas Educators Managerial Union (BEMU) withdrew their labour yesterday amid growing frustration over unresolved issues tied to their industrial agreement. The union, which represents almost than 500 educators, said approximately 90 percent of its members participated in the action.
BEMU President Stephen McPhee raised concerns about outstanding allowances, reassignments to the Family Islands, and the safety and well-being of educators. “There are a number of administrators who received reassignment letters to leave from one island to the next there’s been no provision made for them thus far for housing, there’s been no provision for airfare. We’re saying to them, how are these officers going to report?” said Mr McPhee.
The Ministry of Finance report for May revealed that tax revenue increased by 1.5 percent year over year or $3.4m to $237.9m due to an increase in VAT collections, expenditure fell by 7.1 percent and government debt grew by $72.3m. “The $225.7 m in recurrent outlays for the month represented a decline of 7.1 percent ($17.2 m) from the corresponding period in the prior year. Key categories and movements are as follows: Subsidies decreased by $8.7 m to $11.2 m; and Other payments receded by $9.0 m to $16.3 m, mainly explained by timing difference for payments of insurance premiums. Capital expenditure declined by $5.6 m to $13.1 m,” said the Ministry of Finance report. In response, the Ministry of Education and Technical and Vocational Training issued a statement addressing the union’s concerns and outlining steps being taken to resolve them. The Ministry confirmed that clothing and transportation allowances will be paid directly to educators by early September, with arrears included. It also noted that nine outstanding reassignments were completed as of August 25, while confirmation matters for 37 officers remain under review. “We believe in fairness, ensuring that officers receive what is due to them. We believe in transparency, providing clear timelines and updates on the issues raised. We believe in respect, treating educators and administrators not as adversaries but as colleagues whose contributions sustain the system that serves our nation’s children,” said the Ministry’s statement
Long Island airport expansion ‘vital’ for tourism, says resort boss By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net A LONG Island resort operator is clinging to hope that an improved airport and runway expansion will revitalize the tourism industry as she claims “the island is dead.” Stating that Long Island’s tourism sector has taken a hit and is on a downward spiral, Jill Smith, operator of the Stella Maris said the island has been suffering of a lack of airlift for at least two years. She said the airport’s runway would need to be at least 6,000 feet in order for “There’s one airport in Deadman’s Cay and one in Stella Maris, and both airports have the same runway
length right now, which is about 4,000 feet,” Ms Smith said. “So in the plans calls for a new terminal, but we’re not so much interested in the new terminal. We’re interested in making sure that this runway is at least five or 6,000 feet. In the plans, it says 6,000 feet, and that’s what we’re wanting. We need more airlift, and we need airlift direct from the States. That’s the only way this island will survive. And so that’s what we’re all waiting for. They’ve done a little bit of clearing to Deadman’s Cay Airport, but that could also just be politics. Politics, we’re not quite sure. But yeah, the signing of the contract happened last month.” As part of the Family Island Renaissance
Programme, the government has committed to revitalizing airports across the archipelago. A contract signing for a runway project at Deadman’s Cay Airport with Bahamas Hot Mix dating back to June, showcased promises from the government that Long Island’s airport will see a longer, wider and more resilient runway which will allow access for full aircrafts. Ms Smith, noting that her resort had to close its door on July 15 “because of such terrible business” noted that difficulties of getting to the island have caused tourism numbers to decline. “Right now, Bahamas Air has one flight to Long Island daily, only to Deadman’s Cay,” she said. “Sometimes that flight is
“Tax revenue increased yearover-year by 1.5 percent ($3.4 m) to $237.9 m and included the following key contributors. Value Added Tax was higher by $18.7 m at $119.2 m, supported by gains in the goods and services component. Taxes on Financial & Capital Transactions increased by $4.4 m to $11.5 m. Taxes on Use & Permission to Use Goods were up by $2.6 m to $24.0 m. Taxes on Property were lowered by $11.4 m to $10.5 m as the prior year was boosted by arrears payments. Non-tax revenue declined by 34.0 percent ($15.6 m) to $30.3 m, reflecting lower receipts for interest and dividend related collections. “During the review month, central Government’s debt outstanding grew by an estimated $72.3 m. The $224.4 m in proceeds from borrowings was solely derived from domestic currency sources. Aggregate debt repayment of $152.1 m was allocated between domestic (99.5 percent) and foreign (0.5 percent) currency obligation” May and June - are traditionally when the Government has run high deficits due to the fact
ROBERT ‘SANDY’ SANDS
Union says Baja Mar exec is ‘thorn in the side’ of musicians By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
“It is in this spirit that the ministry confirms the following. The clothing allowance and transportation allowances owed to officers will be paid through direct payment in due course by early September, with arrears addressed. Nine outstanding reassignments were completed on 25 August 2025. Confirmation matters for thirty-seven officers remain under review and updates will be communicated directly to the union.” The statement added that geographical allowances have already been paid, and remaining balances are being settled. The promotion exercise is still in progress and will be concluded “without delay.” Addressing legal concerns, the Ministry referenced a court writ received in October 2021. Of the 160 matters tied to the case, 157
THE United Artists Bahamas Union (UABU) has hit out at a prominent hotelier as “unsupportive” of Bahamian entertainers qas they defend musicians against recent comments that “they have not reinvented themselves.” UABU president Linc Scavella, blasted hotelier and senior vice president at Baha Mar, Robert ‘Sandy’ Sands, who claimed that musicians have aided in the downward spiral of the nightclub industry. Mr Scavella said Mr Sands “has been a thorn in the side of musicians and entertainers for years.” “I said that because of his comments and saying that musicians and entertainers have contributed to the demise of the nightclubs and entertainment industry, etc,” he said. Adding that he “has not done anything to help to uplift the music industry, including while he’s working in Baha Mar... He has been a thorn in the side of musicians and entertainers for years. “We are going to address all of his comments and also reveal to the public, things that he has done over the years, with regards to the industry. He had brought in a number of foreign artists back in the day. I personally had to stop one of them, that was Smokey Robinson, because he did not want to use a Bahamian opening artist. He’s not concerned about Bahamian musicians at all. And so from that time, he was not concerned. “I was secretary general of the other union at the time, and me and my assistant told him to go fly a kite
UNION - See Page B2
MUSICIANS - See Page B2
SURPLUS - See Page B2
even shared with San Salvador. So we don’t even have the full seats. We never have the full seats anyway, because our runway is short and so because of the load, and they have to fuel in Nassau, because there’s no fuel in Deadman’s Cay, so they come to Long Island fully loaded. “So on each flight, I mean, we had a meeting, but I can’t remember exactly, but let’s just say there’s 48 seats on Bahamas Air. Because of the short runway and the full fuel load, they’re only allowed maybe 38 seats, or 36 seats that they sell. So they never come to Long Island with the full flight anyway, because of load restriction. And as you could imagine, that flight is always full. “And so when tourists come to book three weeks ahead of time, four weeks ahead of time, because of the local business already, and locals blocking and booking the flight, there’s
EXPANSION - See Page B2