NASSAU, BAHAMAS — Total government revenue in the first half of FY2025/2026 reached $1.5 billion, up $66.6 million compared with the same period last year, as the central government deficit narrowed to $342.4 million, or 2.1 percent of GDP, from $367.7 million, or 2.3 percent of GDP, in FY2024/2025.
The Mid-Year Budget Review was delivered in the House of Assembly on Wednesday Minister of State in the Office of the Prime Minister Leon Lundy, providing an update on revenue and expenditure trends, macroeconomic performance, and fiscal risks. Tax receipts increased by $54.4 million, or 4.2 percent, to $1.3 billion, representing 39.1 percent of the full-year budget target. Expenditure totaled $1.9 billion, up $41.3 million, or 2.3 percent, over the same period last year, driven mainly by employee compensation and interest on public debt.
“Preliminary data indicates that the central Government recorded a deficit of $342.4 million, equivalent to 2.1 percent of GDP, during the first six months of the fiscal year. This represents an improvement compared to the deficit of $367.7 million, or 2.3 percent of GDP, recorded in the same period last year,” Minster Lundy noted.
He added: “Total revenue amounted to $1.5 billion, reflecting growth of $66.6 million relative to the prior year. Tax receipts increased by $54.4 million, or 4.2 percent, reaching $1.3 billion, which represents 39.1 percent of the full-year budget target. This performance reflects continued economic activity and strengthening compliance efforts across major revenue categories.
Total expenditure totaled $1.9 billion, an increase of $41.3 million, or 2.3 percent, compared to the same period last year. Recurrent expenditure rose by $42.2 million to $1.7 billion, driven largely by compensation of employees and interest payments on public debt. Capital expenditure declined slightly by $0.9 million to $191.7 million, mainly reflecting reduced payments to private sector partners.”
The Direct Charge on the Government increased by $633.9 million to $12.4 billion, or 75.1 percent of GDP, reflecting borrowing to support fiscal operations and debt management. Key fiscal and macroeconomic risks identified include climate-related events, state-owned enterprise performance, pension liabilities, healthcare pressures, and cybersecurity threats.
A more detailed address on the Government’s broader fiscal and budget outlook will be delivered by the Prime Minister when Parliament reconvenes.
