Bahamas cuts deficit, boosts support for schools, hospitals, and jobs

Bahamas Prime Minister Philip Davis.

The Bahamas has recorded a 0.5 percent fiscal deficit for the budget year ending June 30, 2025, a significant improvement from the 13.7 percent deficit in 2021, Prime Minister Philip Davis KC, MP, announced yesterday.

The Ministry of Finance confirmed that the result falls within the government’s target range of 0.3 to 0.7 percent. Prime Minister Davis described the achievement as a sign of how far the nation has come under his administration.

“Four years ago, our country was facing one of the worst fiscal crises in its history. Today, we are back on stable ground. We made tough choices to protect our economy, and those choices are now paying off,” Davis said.

The Prime Minister stressed that fiscal discipline is not just about balancing the books, but about delivering tangible benefits to Bahamian families.

“Every dollar we save on debt is a dollar that can go toward schools, hospitals, family islands, and helping Bahamian families meet the cost of living,” he said. “It means more resources for the things that matter — better roads, stronger communities, safer neighbourhoods, and more jobs.”

Davis also tied fiscal responsibility to sustainable development and long-term planning.

“Responsible governance is about managing all our resources wisely. The same discipline that drives our fiscal policy also drives our commitment to protecting our environment and preparing for the future,” he said.

He concluded that the milestone reflects a broader national effort.

“This is what responsible leadership looks like — steady progress that improves lives and strengthens our country. We are building a better future, one decision at a time, and we are doing it together.”