The mid year budget statement 2025-2026 was delivered in the House of Assembly on Wednesday by Minister of State in the Office of the Prime Minister, the Hon. Leon Lundy.

Lundy told Parliamentarians that government recorded a deficit but remains on track to meet fiscal targets. He said, “a deficit of $342.4 million equivalent to 2.1% of GDP (gross domestic product) during the first six months of the fiscal year. This represents an improvement compared to the deficit of $367.7 million or 2.3% of GDP recorded in the same period last year. 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% reaching $1.3 billion which represents 39.1% of the full year budget target.”

Lundy also spoke to government spending. “Total expenditure totaled $1.9 billion, an increase of $41.3 million or 2.3% 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 of public debt. Capital expenditure declined slightly by $0.9 million to $191.7 million mainly reflecting reduced payments to private sector partners,” Lundy said.

The minister also noted that fiscal performance usually improves in the second half of the year as revenue increases and spending moderates. On government borrowing Lundy said, “the direct charge on the government increased by $633.9 million to $12.4 billion representing 75.1% of GDP at the end of December, 2025. This outcome reflects financing required to support fiscal operations and debt management activities during this period.”

According to Lundy the government is also continuing to manage and monitor key microeconomic and fiscal risks including climate disasters.

Prime Minister and Minister of Finance, the Hon. Philip Davis is expected to delivered a more substantive budget statement in the House of Assembly next week.