The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

PRIME Minister Philip “Brave” Davis yesterday announced that The Bahamas recorded its first fiscal surplus since independence, reporting a $39.3m surplus for the 2025/2026 financial year.

However, the announcement sparked a heated debate in the House of Assembly, with the Opposition accusing the government of excluding hundreds of millions of dollars in spending to produce a misleading picture of the country's finances.

Tabling the Ministry of Finance’s June 2026 Monthly Fiscal Summary Report in the House of Assembly, Mr Davis said the surplus, equivalent to 0.2 per cent of gross domestic product (GDP), marked a historic turnaround from the $1.3bn deficit recorded in 2020/2021 amid the economic fallout from Hurricane Dorian and the COVID-19 pandemic.

East Grand Bahama MP Kwasi Thompson described the figure as a “false surplus”, questioning whether $310m in capital investment referenced by Finance Minister Simon Wilson had been excluded from the calculations.

Mr Thompson argued that the government had not accounted for all its spending and questioned whether outstanding bills had been left unpaid to achieve the reported surplus.

He also raised concerns about the National Investment Fund (NIF), including the treatment of $700m, and called for the government to disclose its outstanding obligations at the end of June to establish whether unpaid bills exceeded the reported surplus.

Mr Thompson questioned the significance of celebrating a surplus while Bahamians continued to struggle with rising fuel prices and the cost of living.

“The cost of living is continuing to hammer our people. Inflation continues to increase, and so I think it should not be celebrated until we are able to solve sufficiently the cost of living crisis,” he said.

Mr Davis rejected the criticism, insisting that the figures were available for examination and accusing Mr Thompson of dismissing the government's explanation without properly considering the information presented.

He defended Ministry of Finance officials responsible for preparing the accounts, noting that some had worked under Mr Thompson when he served as Minister of Finance.

Mr Thompson countered that the exclusion of the $310m was a policy decision rather than the responsibility of public servants.

According to the fiscal report, total revenue rose by 16.6 per cent to $3.96bn, exceeding budgeted revenue by 1.7 per cent, while expenditure increased by 12.6 per cent to $3.92bn.

Tax revenue climbed by 13 per cent to $3.42bn, led by value added tax (VAT) collections, which increased by 14.9 per cent to $1.65bn. Non-tax revenue rose by 45.4 per cent to $543.3m.

Mr Davis attributed the improvement to stronger tax collection and compliance, alongside $68.6m generated in June through the Domestic Minimum Top-Up Tax on large multinational groups operating in The Bahamas.

The fiscal deficit had narrowed from $721.7m in 2021/2022 to $534.6m in 2022/2023, $194m in 2023/2024 and $84.8m in 2024/2025 before the reported surplus was achieved.

Mr Davis said the government recorded monthly surpluses from January through June, with the final quarter producing a surplus of $196.6m.

Recurrent expenditure rose by 9.7 per cent to $3.51bn, while capital expenditure increased by 45.2 per cent to $414.9m. Interest payments on the public debt totalled $674.7m for the year.

Mr Davis also highlighted international recognition of the country's fiscal progress, including Moody's upgrade of The Bahamas to Ba3 with a stable outlook in April 2026 and S&P Global's upgrade in September 2025.

The debate over the figures widened into a confrontation over the work of the Public Accounts Committee (PAC), chaired by Opposition leader and Marco City MP Michael Pintard.

Mr Davis criticised Mr Pintard for publicly discussing the committee's work before its investigation was completed, arguing that questions concerning the NIF should be directed to the committee.

Mr Pintard rejected the criticism, maintaining that the PAC had exercised restraint in its public updates and had not disclosed confidential information.

He said the committee had written to the Speaker twice seeking permission for its meetings to be broadcast live, arguing that public hearings would allow Bahamians to assess testimony concerning the management of public funds.

Mr Pintard also described the government's surplus claim as “contrived”, arguing that NIF spending should be considered when assessing the country's overall financial position.

“The NIF is an account created by the Prime Minister, and it is the Ministry of Finance and the Treasury that's managing that,” Mr Pintard said.

Mr Davis denied directing the Speaker to prevent public broadcasts of PAC proceedings, although he agreed with the decision, accusing the Opposition of seeking to turn the hearings into a “reality show”.

Earlier in the session, tensions escalated when Deputy Speaker Sylvanus Petty repeatedly ordered Mr Thompson to sit down after he interrupted West Grand Bahama MP Kingsley Smith, who was attempting to address the PAC dispute.

All FNM MPs stood as Mr Thompson challenged the ruling that Mr Smith should speak first. Mr Petty warned that members would be removed if they refused to comply, and proceedings were suspended for two minutes.

Despite the confrontation, Mr Davis maintained that the fiscal figures could withstand scrutiny.

He said the improved financial position would strengthen the country's ability to respond to future emergencies without relying as heavily on costly borrowing, while acknowledging that further reforms were needed to address public debt, state-owned enterprises and fiscal transparency.