NASSAU, BAHAMAS — Prime Minister Philip Davis and Opposition members clashed in Parliament on Wednesday over the government’s declaration of a historic $39.3 million fiscal surplus, with the Opposition questioning whether hundreds of millions of dollars in National Investment Fund (NIF) expenditure had been excluded from the fiscal calculations, while the Prime Minister defended the integrity of the government’s financial reporting.
The exchanges followed the Prime Minister’s announcement that The Bahamas had recorded its first fiscal surplus since independence, ending the 2025/2026 fiscal year $39.3 million in the black, compared to an $84.8 million deficit the previous year.
Opposition Shadow Finance Minister and East Grand Bahama MP Kwasi Thompson challenged the government’s figures, arguing that $310 million in expenditure reportedly undertaken through the National Investment Fund should be reflected in the country’s overall fiscal position.
“The same capital investment, the same type expenditure in the budget. So that 310 million was not included in the budgetary process when you assessed your surplus,” Thompson said.
“So, you can stand up and shout and pat yourself on the back and say that you’ve gotten a surplus but you have not taken account of all of the spending.”
Thompson argued that the government’s reported surplus did not present a complete picture of public expenditure.
“It is a false surplus. It is not a surplus that I believe is grounded in the picture being put before the country,” he said.
The Opposition MP also questioned the level of outstanding government obligations at the end of June, suggesting that unpaid bills could affect how the public assesses the fiscal achievement.
“What are the outstanding bills that you have not yet paid?” Thompson asked.
He further argued that the government should prioritise outstanding payments to public servants and address rising living costs rather than celebrate the fiscal milestone.
Davis rejected the Opposition’s characterisation of the surplus, defending the work of Ministry of Finance officials and urging Opposition members to examine the government’s published accounts.
“Look at the accounts that have been prepared by the same individuals who worked for you when you were Minister of Finance,” Davis said, responding to Thompson.
“Because everything you are saying now, you know, we didn’t prepare the accounts. They prepared the accounts.”
The Prime Minister also rejected suggestions that his presentation was intended as a political celebration, maintaining that the figures demonstrated the progress made in restoring the country’s fiscal position.
“This was not about celebrating,” Davis said.
“Information is there. Look at it.”
Opposition Leader Michael Pintard subsequently joined the exchange, describing the reported surplus as misleading and questioning whether the NIF transactions had been properly reflected in the government’s fiscal reporting.
“The surplus he talks about is contrived,” Pintard said, adding that the NIF was managed through the Ministry of Finance and the Treasury.
Pintard challenged the Prime Minister to allow the Public Accounts Committee to complete its examination of the NIF’s financial activities and consider the relevant testimony before conclusions are reached.
Davis, however, questioned the propriety of the committee’s chairman – Pintard- publicly discussing matters under investigation before the committee had completed its work and reported its findings.
Davis maintained that the government’s fiscal figures were available for scrutiny and would be assessed by international agencies.
“The numbers are there,” Davis said, responding to Pintard’s criticism.
The dispute comes as the Ministry of Finance’s June 2026 Monthly Fiscal Summary Report revealed that the government recorded a $39.3 million surplus, equivalent to 0.2 percent of Gross Domestic Product (GDP), although the outcome fell below the original budgeted surplus of $75.5 million.
The report shows that total government revenue reached $3.96 billion, exceeding the $3.90 billion budget projection, while expenditure climbed to $3.92 billion against a budget of $3.82 billion.
Tax revenue rose 13 percent to $3.42 billion, supported by stronger Value Added Tax (VAT) collections, which increased 14.9 percent to $1.65 billion.
Non-tax revenue also climbed 45.4 percent to $543.3 million, driven by higher property income and increased collections from government goods and services.
However, the government’s newly implemented Domestic Minimum Top-Up Tax generated $68.6 million against a budgeted $130.1 million, representing a $61.5 million shortfall.
The Ministry of Finance report shows that the entire $68.6 million was collected in June, representing 52.7 percent of the projected annual revenue from the tax, which applies a 15 percent minimum rate to qualifying large multinational groups operating in The Bahamas.
Addressing Parliament, Davis highlighted the new tax as part of the government’s efforts to strengthen revenue collections.
“Newly implemented this year, it contributed $68.6 million in June, revenue that would otherwise have been collected by other jurisdictions,” the Prime Minister said.
The report did not provide an explanation for the shortfall in multinational tax revenue.
Meanwhile, the government’s overall fiscal position strengthened significantly during the final six months of the fiscal year, with monthly surpluses recorded from January through June.
June alone produced a $130.7 million surplus, compared to $25.4 million in the corresponding month of 2025.
Revenue for the month surged 150.7 percent to $777.1 million, supported by stronger VAT collections, dividend receipts and other revenue gains.
The Ministry of Finance noted that June’s revenue and expenditure movements included significant reciprocal offsets of receivables and payables between the government and statutory bodies, along with sizeable dividend receipts.
A significant portion of the dividend income was used to settle outstanding government payment arrears.
The fiscal report, which is prepared on a modified cash basis, recognises revenue when received and expenditure when paid. It does not provide a comprehensive figure for all outstanding government bills at the end of the fiscal year.
The Opposition’s contention that NIF expenditure should have been included in the fiscal calculations was not independently established by the figures presented in the monthly report.
In his earlier communication, Davis maintained that the fiscal improvement reflected deliberate policy decisions aimed at strengthening revenue collection and compliance without imposing additional burdens on households.
“This Government chose to strengthen revenue by improving collection and compliance rather than by imposing new burdens on households already under pressure,” he said.
The Prime Minister also highlighted increased infrastructure investment, with capital expenditure rising 45.2 percent to $414.9 million during the fiscal year.
He pointed to recent assessments by international credit rating agencies, including Moody’s April 2026 upgrade of The Bahamas to Ba3 with a stable outlook, as evidence of improving confidence in the country’s fiscal management.
Davis acknowledged that significant challenges remain, including the financial performance of public enterprises, the burden of debt servicing and the need for continued improvements in fiscal transparency.
The government paid $674.7 million in interest on public debt during the fiscal year.
“Many families continue to feel the strain of higher prices, and this Government is conscious of it every day,” Davis said.
Despite the parliamentary dispute, the Prime Minister maintained that the country’s fiscal progress was real and that the government would continue efforts to reduce debt costs, reform public enterprises and strengthen financial reporting.