NASSAU, BAHAMAS — The Ministry of Finance reported a $29.4 million surplus for May 2025, marking a $10.7 million year-over-year improvement, as reduced government spending more than offset softer revenue collections.
Preliminary data showed overall revenue slipped 4.3 percent ($12.2 million) to $268.2 million during the month. However, an 8.7 percent ($22.9 million) contraction in expenditure to $238.8 million underpinned the stronger fiscal position.
Tax receipts grew modestly, up 1.5 percent ($3.4 million) to $237.9 million, led by higher Value-Added Tax (VAT) inflows, which rose $18.7 million to $119.2 million. Gains were also recorded in taxes on financial and capital transactions (up $4.4 million to $11.5 million) and taxes on use and permission to use goods (up $2.6 million to $24.0 million). By contrast, property tax collections fell $11.4 million to $10.5 million, as last year’s numbers had been boosted by arrears payments.
Non-tax revenue saw a steep 34 percent ($15.6 million) decline to $30.3 million, reflecting lower interest and dividend receipts.
On the expenditure side, recurrent outlays totalled $225.7 million, down 7.1 percent ($17.2 million) from the prior year. Subsidies fell by $8.7 million to $11.2 million, while other payments dropped by $9.0 million to $16.3 million, largely due to timing differences on insurance premium payments. Capital expenditure decreased by $5.6 million to $13.1 million.
Meanwhile, the government’s debt stock grew by $72.3 million in May. Borrowings of $224.4 million were sourced entirely from the domestic market, with repayments of $152.1 million directed almost exclusively to domestic creditors (99.5 percent), and the remainder (0.5 percent) to foreign obligations.
