‘FIRST IN A LONG TIME’: MINISTER HAILS PRIMARY BUDGET SURPLUS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A CABINET minister yesterday hailed the mid-year Budget’s $4.9m primary surplus as “the first in a very long time” and a signal that The Bahamas is no longer having to borrow to pay interest on its existing debt. Michael Halkitis, minister of economic affairs, told the RF Bank & Trust Economic Outlook conference: “For the first half of this fiscal year, the primary balance reflected a surplus of $4.9m - a major variance from the primary deficit of $41.2m in the previous year. This primary surplus is the first in a very long time.” A primary surplus means that the Government’s revenues exceeded its recurrent (fixed cost) spending for the six months to end-December 2022.

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This measurement strips out interest payments on the Government’s existing debt from the expenditure calculation, which means it did not have to borrow during the 2022-2023 fiscal year’s first half to cover its debt servicing costs.

Summing up the 20222023 mid-year Budget performance, Mr Halkitis said: “As a result of net borrowing activities, central government debt increased by $236.2m to $11.036bn,