NASSAU, BAHAMAS — Economic Affairs Minister Senator Michael Halkitis yesterday rejected suggestions that government fiscal data is unreliable, stressing that published figures are independently verified and relied upon by international investors and agencies.
“The government’s numbers that we publish…they are checked and double-checked by the Ministry of Finance, the Treasury, Internal Audit, and the Auditor General,” Halkitis said during an Office of the Prime Minister press conference. “Organisations such as the IMF, S&P, Moody’s, Fitch, all of the banks that invest, and private investors that invest in government securities in The Bahamas study these numbers. They rely on them.”
He added: “It is never even in the contemplation of this administration to do anything with numbers. I saw the word ‘manipulate’ in an article—not even the desire to do so. But even if there were, these things are checked and double-checked by any number of external individuals.”
Halkitis confirmed that the government ended the 2024/25 fiscal year with a deficit of 0.5 percent of GDP, within its target range of 0.3 to 0.7 percent. “We are very pleased with that,” he said. “It shows that we have achieved the target set at the beginning of that budget year, driven by strong revenue performance, growth in the economy, as well as containment of expenditure.”
Halkitis also noted that Standard & Poor’s recently upgraded The Bahamas’ sovereign credit rating from B+ to BB-. “We had said during this budget period and afterwards that it is our objective to have The Bahamas return to investment grade within the next two to three years,” Halkitis said. “This is a step in that direction. This is one step forward.”
The minister linked the upgrade directly to fiscal performance. “S&P commented on the strong growth in the economy, the improvement in our revenue administration, and the containment of expenditures as what has led to their upgrade,” he said.
Looking forward, Halkitis clarified that the government is not currently in surplus, but is projecting one. “The Prime Minister never said this country is in a surplus,” he stated. “The Prime Minister says that we anticipate at the end of this budget year that we are in now, 2025/26, that we anticipate a budget surplus of approximately $75 million—not that we are currently in a surplus.”
On delays in government payments to vendors, Halkitis explained: “One thing I can say: if you do work for the government, you’re properly engaged, you do quality work, you will be paid. But you have to be properly contracted. You have to do the work. The work has to be certified that it has been completed. You have to have your proper banking details. All of that goes into it.”
Halkitis also addressed concerns about unemployment, describing the recent uptick as temporary. “We study it, and we try to get a better appreciation of what caused the increase. That way we are able to direct our policy response,” he said, pointing to skill gaps in the job market. “The economy is generating demand for jobs. We have to make sure that our people are equipped to be able to fill them.”
