Prime Minister and Minister of Finance, the Hon. Philip Davis delivered the 2025/2026 Budget Communication in the House of Assembly on Wednesday.

According Mr. Davis this year’s budget, themed Expanding Opportunities Island by Island, is balanced with a surplus of $75 million. He told Parliamentarians, “for the first time in our history as an independent nation a Minister of Finance will be tabling a balanced budget, evidence that fiscal discipline can co-exist with a bold vision for national progress. We accomplished this without sacrificing development priorities or slowing the pace of investment. We did it without resorting to reckless cuts or firing dedicated employees just to claim a quick win. This balanced budget is the result of careful planning responsible leadership and a steadfast commitment to the Bahamian people.”

The Prime Minister also expressed confidence that deficit targets will be achieved. “Typically the month of April contributes approximately 12% to total revenue intake over a ten month period. According to the latest preliminary financial data April 2025 is consistent with this trend accounting for approximately 13% of total revenue over the ten month period. The preliminary financial data shows revenue specifically for the month of April 2025 at $352.7 million,” he said.

Mr. Davis announced a 5% reduction in VAT on various items beginning September 1st. He said, “these include: baby diapers, Depends, feminine hygiene products, prescription and non-prescription drugs – that includes medications for those with chronic conditions – medical and dentist supplies and other medical and therapeutic items.”

The Prime Minister also spoke to the rise in expenditure attributing it to the compensation of public sector employees and investments in infrastructural improvements across the country.