NASSAU, BAHAMAS — The government generated a second consecutive monthly budget surplus, as it reported a $16.2 million surplus for the month of February which was driven primarily by increased collection of taxes.
Following a $6 million budget surplus during January 2023, the Ministry of Finance’s fiscal report for the month of February disclosed a $16.2 million surplus for February, meaning that the government took in more in taxes and other revenue than it spent for that month.
The Ministry of Finance noted that revenue receipts firmed by $51.7 million (26.2 percent) to $249.2 million when compared to the prior year.
“This improved performance was primarily driven by increased collections of $26.3 million in international trade & transaction taxes, $12.5 million in value-added taxes, $7.7 million in other taxes on goods and services, and $2.7 million in property taxes,” according to the Ministry of Finance.
“On a month-over-month basis taxes on other goods and services grew by $14.2 million (28.1 percent) and property tax receipts improved by $2.5 million (14.4 percent) owing to enhanced collection efforts.”
The Ministry of Finance noted that on the expenditure front, total expenditure rose $2.5 million (1.1 percent) to $232.9 million relative to the prior year.
“Outlays primarily increased for the acquisition of goods and services ($11.8 million) and public debt interest payments ($6.3 million). Month-over-month, spending was contained by $30.9 million (11.7 percent) mainly due to a reduced interest payments ($23.5 million). As a result of the above, Government’s fiscal position for February 2023 resulted in a $16.2 million surplus.”
The net debt position reportedly increased by $100 million to pre-fund future debt amortizations and payments on behalf of state-owned enterprises (SOEs).
