$2.5BN revenue outturn anchors budget 2026/27 as government points to stability and growth

He told Parliament that total revenue reached 65.3 percent of the full-year target, reflecting an increase of $74.7 million compared to the same period last year, supported by steady tax collections and continued economic activity across key sectors.

Halkitis said tax revenue remained the backbone of the fiscal framework, totalling $2.3 billion or 89.2 percent of total revenue, driven by sustained domestic demand, improved compliance, and stable tourism performance.

Value Added Tax remained the largest single contributor at $1.1 billion, increasing by 6.6 percent year-over-year, which he attributed to stronger enforcement and consistent consumption trends. Licence-based revenues also posted strong growth, rising 49 percent to $211.7 million, reflecting increased business activity and regulatory collections.

He said overall revenue performance was stable but mixed across categories, with gains in VAT, gaming taxes, and business licences offset by declines in property taxes and financial transaction taxes, as well as a marginal decrease in international trade-related receipts.

On expenditure, Halkitis reported that total spending reached $2.7 billion, or 70.7 percent of the budget, with recurrent expenditure at $2.4 billion and capital investment at $271.7 million. He said spending remained broadly in line with expectations, driven by public service delivery, infrastructure projects, and debt servicing obligations.

The Minister noted that the fiscal deficit stood at $157.5 million, or 0.9 percent of GDP, while the Government recorded a primary surplus of $294.5 million, reflecting that revenues remained sufficient to cover non-interest expenditure.

Central government debt stood at $12.5 billion, with external debt accounting for 43.4 percent of the total. Halkitis said the debt trajectory is expected to continue on a downward path over the medium term, supported by sustained growth and disciplined fiscal management.

He said the Government remains focused on maintaining fiscal stability, strengthening revenue administration, and supporting affordability for Bahamian families, while reinforcing what he described as “confidence into the future” for the national economy.