NASSAU, BAHAMAS- The Government recorded a $58.6 million fiscal surplus in February 2025, a nearly nine-fold increase over the $6.9 million surplus posted in the same month last year, according to preliminary data released by the Ministry of Finance in its monthly fiscal summary report for February.
The stronger performance was driven by a 20.8 percent rise in revenue, which totaled $292.9 million for the month, and a slight decline in overall spending, which fell by 0.5 percent to $234.4 million.
Tax revenue continued to anchor the Government’s income stream, growing by 14.1 percent year-over-year to reach $241.1 million. Value-added tax (VAT) collections rose by $11.5 million to $103.2 million, buoyed by increased activity in the domestic goods and services sector. Business license fees also performed strongly, contributing to a $16.1 million increase in taxes on the use and permission to use goods, which climbed to $45.7 million.
Non-tax revenue surged by 66.5 percent, or $20.7 million, to $51.8 million, primarily as a result of higher dividends and surplus fees collected from the banking sector.
On the expenditure side, recurrent outlays rose modestly by 2.6 percent to $220.9 million. This included a $9 million increase in subsidies, which totaled $32.5 million for the month, and a $3 million rise in the use of goods and services, now at $57.2 million. Public debt interest payments declined by $2.5 million to $23.1 million. However, social assistance and pension payments fell by $4.9 million to $18.3 million.
Capital expenditure contracted by $6.8 million to $13.4 million in February. Meanwhile, the Government’s overall debt increased by an estimated $28.7 million during the period.
While the monthly numbers showed fiscal improvement, Opposition Shadow Finance Minister J. Kwasi Thompson criticized the broader direction of government spending, pointing to what he called a troubling $9.6 million cut to social assistance over the first eight months of the fiscal year.
Citing the same February report—which he noted was released six weeks late and in violation of the law—Thompson said social assistance spending fell from $161.8 million to $152.2 million compared to the same period in the prior year, even as many Bahamian families continued to grapple with rising living costs.
“The Free National Movement is deeply concerned by the Davis Administration’s decision to cut $9.6 million from social assistance spending… even as Bahamians continue to struggle under the weight of rising costs,” Thompson said in a statement.
He accused the Government of prioritizing non-essential travel, public relations, and inflated contracts over support for the most vulnerable.
“This government continues to find money for non-essential travel, press events, and inflated contracts but chooses to cut critical support for the most vulnerable among us. Their actions speak volumes about their priorities, and they are not with the people,” he said.
Thompson also raised alarms about the Government’s growing dependence on Central Bank financing, claiming nearly $200 million had been borrowed so far this fiscal year. Despite the February surplus, the deficit for the year-to-date stands at $332 million, which he said raises doubts about the administration’s ability to meet its fiscal targets.
“This is what fiscal mismanagement looks like. The government borrows more, spends recklessly, and delivers less where it’s needed most,” Thompson said. “The Free National Movement takes a different approach. Under our leadership, we will practice responsible budgeting, prioritize critical services, and restore public trust.”
