NASSAU, BAHAMAS — Prime Minister Philip Davis today gave formal notice of a borrowing resolution in the House of Assembly, despite the government projecting a budget surplus in the 2025/2026 fiscal year.
He explained the move was strictly intended to refinance existing debt and manage cash flow—not to cover a deficit. The resolution authorizes the Minister of Finance to borrow by way of government loan agreements or line of credit agreements, issue securities, and create any other debt instruments in local or foreign currency.
Davis clarified that while borrowing resolutions are typically introduced to cover fiscal shortfalls, that was not the case in this instance.
“Usually, such resolutions are to borrow funds when you are in deficit—to cover your deficit. But this one is really just for the purpose of refinancing,” he said, emphasizing that the resolution was being introduced out of fiscal prudence, not necessity.
He pointed to Article 129(1) of the Constitution, which mandates that the Minister of Finance must, before the end of each financial year, prepare and lay before the House annual estimates of revenue and expenditure for the following year. Those estimates, already tabled, reflect a surplus of revenue over expenditure, he noted.
“Given the surplus outlined in the 2025/2026 estimates, there is no need for additional borrowings. This resolution simply provides the authority to refinance or reschedule existing debt or to manage the government’s cash position in a currency of the Minister’s choosing,” Davis said.
During his budget presentation, Prime Minister Davis also touted a historic $70 million budget surplus—the first since Independence.
