NASSAU, BAHAMAS- Prime Minister Philip Davis said The Bahamas’ achievement of a 0.5 percent fiscal deficit for the year ending June 30, 2025, is powerful proof of his administration’s responsible governance and disciplined approach to national development.
“This is a remarkable achievement when compared to a budget deficit of 13.7% of GDP as of June 30, 2021,” Davis said during his contribution to debate on the Bahamas Protected Areas Fund (Amendment) Bill, 2025. “Last year, the IMF reported that our budget deficit of 1.3% was remarkable, and no doubt that 0.5% is even ‘more remarkable.’”
He said the improved fiscal performance reflects the government’s determination to reduce borrowing, ease debt-servicing costs, and redirect savings toward improving the lives of Bahamians.
“The more we can reduce on debt servicing, the more we can utilize those savings to improve the lives of the Bahamian people,” Davis said. “This is what drives me. This is what drives this government.”
The Prime Minister said the country’s fiscal success mirrors the same principles of prudence and foresight that guide the government’s environmental policies.
“Responsible governance means managing our resources wisely across every domain, whether balancing budgets or protecting ecosystems,” he said. “The same discipline, the same vision, and the same commitment to our children’s future that drives our fiscal policy also drives our environmental stewardship.”
Davis said the Bahamas Protected Areas Fund (Amendment) Bill, 2025 ensures that the country’s conservation agenda is backed by both funding and manpower. The amendment explicitly allows the Fund to hire professional staff — a critical step in executing large-scale environmental protection initiatives.
“The Fund could disburse grants. It could finance projects. But it could not hire the marine biologists, the park rangers, the conservation officers, the project managers, the data analysts, and the community liaisons needed to actually implement the ambitious conservation agenda we have set,” he explained. “This created an unacceptable situation… The amendment before us today corrects this problem.”
The Prime Minister emphasized that the change will empower the Fund to employ qualified Bahamians directly, building national capacity in conservation and reducing dependence on foreign consultants.
“You cannot protect 6.8 million hectares of marine protected areas with volunteers and good intentions alone,” Davis said. “Effective conservation requires dedicated professionals. And I can guarantee you that no one will be more dedicated to protecting our environment than the citizens whose lives and the lives of their loved ones are inextricably linked to our nation.”
Davis pointed to The Bahamas’ Debt Conversion for Marine Conservation Project as an example of how his administration is successfully aligning fiscal innovation with environmental action. The initiative refinanced $300 million in external debt to unlock $132 million in new conservation funding — all without increasing national debt.
“We secured $132 million in new conservation funding while reducing our debt burden,” Davis said. “This move demonstrated that small island nations, equipped with the right vision and priorities, can compete and innovate on the global stage.”
The project earned The Bahamas the ‘ESG Deal of the Year’ award from Global Capital at the 2025 Latin America Bond Awards — recognition that Davis said validated the country’s leadership in environmental finance.
“This was not a participation trophy,” he said. “It was recognition that The Bahamas has pioneered a model that other nations will now study and seek to emulate.”
Davis underscored that environmental protection is not just about preserving natural beauty but safeguarding the foundation of the Bahamian economy.
“Our economy and way of life are deeply intertwined with the protection of our environment,” he said. “When visitors journey from across the world to our shores, they come to see clear waters, white sandy beaches, and thriving marine life. This is the foundation tens of thousands of Bahamian families depend on for their daily bread.”
He said the amendment aligns with his administration’s broader vision of national self-reliance and sustainability.
“The Bahamas Protected Areas Fund (Amendment) Bill represents a small legislative change,” Davis said. “But it is part of a larger story: a story of a Bahamas that is taking control of its destiny, investing in its people, and protecting its natural resources through meaningful and innovative action.”
