NASSAU, The Bahamas – During his remarks opening the Mid-Year Budget Debate, in the House of Assembly, on March 5, 2025, Prime Minister and Minister of Finance the Hon. Philip Davis said that his Government had shown that compassion and strategic investments in our people and our country can co-exist with fiscal responsibility.
“In September 2021, we met record-high budgetary deficits in the hundreds of millions – now we have delivered the lowest recorded deficits in years as we move closer to a balanced budget,” he said. “We have knocked a billion dollars off our deficit – while at the same time providing more funding for local governments, launching a National Youth Guard programme, putting free Wi-Fi in our parks, expanding Urban Renewal outreach, and deploying new ambulances.”
Prime Minister Davis added that he wished that those present you could have seen “the faces of our beautiful children” at Yellow Elder Primary School, where he recently visited and had the honour of celebrating a special milestone, his Government’s School Breakfast Programme serving more than half a million “free, hot, nutritious breakfasts to our school children, so they can start their days ready to learn, grow, and thrive”.
“A programme that started with nine schools is now serving 11,000 students in 91 schools, across the length and breadth of our country,” he said. “Next year, the programme will be in every primary school in the country.”
“The programme hasn’t only increased attendance and improved grades – it’s helped families during a time when inflation has pushed prices up too high,” Prime Minister Davis added.
He pointed out that the high cost of living continued to remain one of The Bahamas’ greatest challenges.
“In a few weeks, families will get a little relief,” Prime Minister Davis said. “Beginning on the first of April, the Value Added Tax will be reduced from 10 percent to five percent on unprepared foods, whether provided by grocery and convenience stores or imported directly.”
“Unlike in the past, when merchants had to apply for VAT refunds on breadbasket items after importing them, this time, we have made a critical change,” he added. “The VAT rate reduction will now be applied directly at the border.”
What that meant, Prime Minister Davis pointed out, was that every Bahamian, whether a business owner or an individual importing unprepared food items for their families, would pay a lower rate upfront.
“This measure will result in more affordable prices on the shelves and greater access to essential goods for all Bahamians,” he said.
Prime Minister Davis pointed out that his Government’s budget invested significantly in fighting crime.
He said: “In the three-and-a-half years since we’ve been in office, our administration has hired hundreds more police officers; invested in new vehicles; bought more CCTVs, body cameras, and other equipment; and passed laws for harsher penalties for gang members and those who break the conditions of their bail.”
“Our police force now has one of the highest crime detection rates in the region,” Prime Minister Davis added. “If you commit a crime in this country, you are overwhelmingly likely to be caught.”
He noted that even better was preventing those crimes in the first place.
“Just over a year ago, we launched the Gang Crime and Justice Taskforce,” Prime Minister Davis said. “This is a cross-government effort chaired by me, and co-chaired by the Minister of Education, Technical and Vocational Training, and the Minister of National Security.”
He added that his Government brought a whole-of-government effort across the five pillars of crime: Prevention, Policing, Prosecution, Punishment and Rehabilitation.
“We recently reported on the ‘Clear, Hold, and Build’ initiative, launched in Englerston towards the end of last year, with promising results,” Prime Minister Davis said. “In the area crime is down, and residents report feeling safer.”
He added: “In order to ensure that the community moves forward into a better future, The ‘Build’ phase is well underway, and will continue for some time. A community centre is being constructed, skills training and job opportunities are being advanced, conflict resolution, health and social service support have been intensified, along with the installation of more CCTVs, and other initiatives to improve safety and well-being.
“The conditions which support crime did not arise overnight, and it will take time to restore that community to its former glory. But I know it can be done.”
Prime Minister Davis pointed out that Englerston was “just the beginning”.
“Embracing what we learned in Englerston, we are already expanding the Clear Hold and Build Initiative to the communities of Nassau Village and Carmichael,” he said.
