By Gerrino J. Saunders
Journal News Editor
The Opposition Free National Movement (FNM) is not impressed by the Prime Minister’s announcement that the government has achieved a historic budget surplus, the first in the nation’s history.
While in Parliament on Wednesday the FNM Member of Parliament for East Grand Bahama Kwasi Thompson said while the government boasts about a surplus there are still concerns when it comes to accountability especially in relation to the National Investment Fund (NIF).
Mr. Thompson said the numbers used to claim that there is a budget surplus are not accurate.
Using a portion of his contribution to the Anti-Terrorism Amendment Bill 2026 which the Opposition supports and was passed in the House of Assembly Mr. Thompson addressed the FNM’s concerns about the government’s announcement of a budget surplus and the credibility of the numbers.
He said, “Credibility is important, and we still have an outstanding question on the $700 million with respect to the National Investment Fund (NIF). We also have a question-and this relates directly to the surplus; where the Member for St. Barnabas (Michael Halkitis-Minister of Finance) came and said that $310 million was spent on capital investments. The same type of expenditure that is in the budget. So, that $310 million was not included in the budgetary process when you assessed your surplus.
“So, you can pat yourself on the back and say that you have gotten a surplus, but you have not taken account of all of the spending. You have not taken account of the $310 million of spending. And if you don’t take account of that, then it’s a surplus on paper, but in reality, you still are operating in a deficit. It is a false surplus. It is not a surplus that I believe is grounded in the entire picture being put before the country,” said Mr. Thompson.
During a Communication to the House Members Prime Minister Philip Davis said “For the fiscal year just ended, I am pleased to report that the Government recorded a surplus of $39.3 million, equivalent to 0.2 percent of Gross Domestic Product in the space of five fiscal years, the public finances have moved from a deficit of 12.5 percent of GDP to a surplus. No previous Government of an independent Bahamas has recorded a fiscal surplus. This one was achieved, moreover, in an election year, when the temptation to loosen the public purse is greatest.”
However, Mr. Thompson chided the government for what he said is celebrating a surplus when state owned entities like the Princess Margaret Hospital (PMH) is in disarray and nurses need to be paid; he described it as an “empty surplus because you still have so many needs in the country.”
Mr. Thompson questioned whether the government’s outstanding bills surpass the $39.3 million it announced as a surplus. He said, “If so, then there is no surplus. The question is, did you withhold paying those items so you could secure the surplus? We should understand the whole picture.”
Thompson argued that any budget surplus should not be celebrated until the government solves the high cost of living, in terms of fuel, food, electricity, medicine, housing and other areas of life in The Bahamas.
Prime Minister Davis standing on a point of order rebuked the member for East Grand Bahama for suggesting he would tell untruths to the Bahamian people. He encouraged the Opposition to take a closer look at the information regarding the surplus before commenting.
He said, “Look at the accounts that have been prepared by the same individuals who worked for you when you were the Minister of Finance, we did not prepare the accounts, they did, and you are casting in appropriate conduct to the fine professionals in the Ministry of Finance who worked for you, when you start saying the numbers aren’t true.”
However, Thompson remained adamant that the numbers provided to reach the surplus were not inclusive of the $310 million taken from the NIF because of a “policy decision” by the government which brings credibility into question.
The Prime Minister encouraged him to allow the Public Accounts Committee which is investigating the matter to do its job and report its findings.
Standing on a point of order Opposition Leader Michael Pintard also took the position that the budget surplus is not accurate.
He said, “The surplus he (Prime Minister) talks about is contrived, it’s fiction. When he talks about poli-tricks he is the master of that, when he talks about being creative, he has creative numbers; and it is not the civil servants who he wishes to say that we are blaming-we blame him. No matter the smile and the affability, that doesn’t mean that you are being accurate about what you are saying, because he is not being accurate about what he says.”
Continuing Mr. Pintard said, “What is true is that the NIF is an account created by the Prime Minister and it is the Ministry of Finance and the Treasury that is managing that. So, when the member for East Grand Bahama talks about that there is no surplus, he has good justification to say so. Because all of that money, hundreds of millions that are being spent through that particular fund, again is under control of the Ministry of Finance and therefore if it had been registered in the budget the way it ought to have been registered, he would have been ashamed to come here and talk about surplus. There is no surplus, it is absolute fiction.”
The Prime Minister reported that total revenue for fiscal year 2025-2026 reached $3.96 billion, an increase of 16.6 percent over the previous year and 101.7 percent of budget. He added that tax revenue rose by 13.0 percent to $3.42 billion, with gains across the major categories.
Value Added Tax, the principal source of Government revenue, increased by 14.9 percent to $1.65 billion.
According to the Prime Minister total expenditure rose by 12.6 percent to $3.92 billion. Recurrent expenditure increased by 9.7 percent to $3.51 billion, reflecting higher spending on compensation of employees, goods and services, subsidies and social assistance.
For the upcoming 2026/2027 fiscal year, the government has projected a budget surplus of $223.1 million.
