By Julian Reid

Bahama Journal Editor

Prime Minister Philip Davis moved to set the record straight on several “misguided assertions made by the Opposition” during his closing contribution on debate of the 2025/2026 budget on Thursday, maintaining that his government is being responsible in governance.

He referred specifically to claims that this administration was “making a mockery of fiscal guards” under the Public Financial Management Act.

“The Public Financial Management Act has been a strong step forward for public finance management, but it is not perfect,” he said.

 “The Government has identified several areas where enhancements to the Act can be made to better reflect the practical realities of public administration. Given this, in the future, the government intends to put forward further amendments to ensure that the Act remains responsive, effective, and aligned with the evolving needs of our national operations.”

He pointed out that on May 9th, 2025, the Bahamas National Statistical Institute published its updated national accounts estimates, which confirmed a higher GDP number than previously estimated.

“This is good news. It reflects stronger economic performance and greater national output,” Mr. Davis said.

“However, this higher GDP created a technical challenge for meeting the previously fixed revenue-to-GDP and expenditure-to-GDP ratios that were originally set using older projections.”

The Prime Minister informed, “rather than forced artificial increases in revenue or ill-conceived spending cuts just to meet outdated ratios, we made the responsible choice to adjust the targets. This ensures that the fiscal anchors remain realistic, credible, and aligned with the actual size of the economy, instead of distorting fiscal policy in a way that could undermine government services or choke off economic momentum.”

He asserted, “that is responsible governance, not a mockery of fiscal discipline.”

Mr. Davis addressed another claim made that the change in timing of the 2025 Fiscal Strategy Report proves why it should not be released alongside the Budget, “that somehow this government is abandoning the principles of sound fiscal planning by altering the timeline.”

“Let me set the record straight,” he said.  “The decision to change the publication schedule for the FSR was not political, not arbitrary, and certainly not a sign of irresponsibility.  It was a technical and necessary adjustment. The reason is simple.”

“Let me be clear. The Fiscal Strategy Report remains a serious, data-driven document, and it continues to guide the Government’s medium-term fiscal policy. What has changed is not the content, but the timing, to ensure it is built on real, current economic data” the Prime Minister underscored,

Further clarifying his government’s position, the Prime Minister said, “If the Opposition is suggesting that we should prepare fiscal strategy using outdated numbers just to stick to an old timeline, that would be truly irresponsible.”

“This administration will always prioritize accuracy over optics and facts over political theatre. That is what responsible fiscal management looks like in a dynamic, modern economy.”

Prime Minister Davis also addressed concerns raised that the Government has “not explained how it will hit its revenue targets”, implying that our projections are somehow baseless or speculative.”

He stressed, “Let me respond plainly: that statement is false. This Government has projected steady, responsible increases in revenue, from $3.9 billion in FY2025/2026 to $4.6 billion in FY2028/2029, and these projections are not pulled from thin air.”

“They are backed by concrete policy actions, outlined clearly in both the Budget Communication and the 2025 Fiscal Strategy Report,” he added.

Referring to his government’s theme “Expanding Opportunities Island by Island” the Prime Minister focused on some of the people his government is expanding opportunities for

“It’s a woman who clocks out of at 4:00 p.m. from work and signs onto an online course by 6. She’s tired, yes. But she’s determined. She’s learning coding, or bookkeeping, or AI — something that opens a door she thought was shut forever. She’s doing it while raising kids. She’s not waiting for life to slow down. She’s grabbing hold of the future, even as it races ahead,” he said.

The Prime Minister added, “it’s a security guard in his forties who says, “You know what? I want something different.” And he logs on, at night, after a long shift, and begins to upskill. Not just for a job change — but for a life change.

“It’s a student in Inagua or Mayaguana who, through new broadband access, gets to attend the same courses and earn the same credentials as someone in Nassau. The “where you are” doesn’t decide the potential anymore.”

The Prime Minister stressed that “expanding opportunity means telling every Bahamian: you’re not too old, you’re not too far, and it’s not too late.”

As he ended his contribution, the Prime Minister said, “we are on the right path. And if we stay steady, stay disciplined, stay true to the people who sent us here — we will finish what we started.”

“So to the Bahamian people, I say this: we see you. We hear you. And we are working for you. Every school we open, every clinic we staff, every young person we invest in — it is for you.”