Government has surpassed its revenue target for the April to September 2025 period, collecting $2 163.09 million, exceeding the mark of $1 790.02 million.
Minister in the Ministry of Finance Ryan Straughn, in a Ministerial Statement, told the House of Assembly yesterday that goods and services revenue amounted to $811.05 million, above target by $15.56 million, with the main movement coming from value added tax (VAT), which overperformed by $19.82 million – $576.33 million versus the projected $556.51 million.
“Income and profits, collection total $933.74 million, against a target of $517.6 million. Within that, net corporation tax reached $639.45 million, compared with the target of $229.1 million, reflecting prepayments and settlements by some taxpayers. Net income tax was $274.85 million compared to $265.9 million and withholding tax was $19.41 million compared to $22.56 million,” he said.
The Minister said the out-turns had stronger than expected revenues, led by corporation tax and VAT, with wages and salaries tracking closely.
“Lower than expected interest was observed in the first half, while transfers were higher and capital payments were front-loaded. The revised framework for March 2026 projects total revenue of $3 864.51 million, and total expenditure of $3 905.73 million, implying an overall deficit of $41.22 million around 0.27 per cent of GDP,” he said.
The tax administration reforms at the Barbados Revenue Authority continued to support the fiscal performance through targeted enforcement, timely processing of back payments and improved compliance management.
“Sector specific initiatives have contributed to the mid-year out-turn. The Authority will sustain these efforts in the second half so that the gains realised by September are preserved through year-end. The Barbados Economic Recovery and Transformation plan remains our anchor.
“Public Sector Reform, better service delivery and improved financial reporting across the public sector, including state-owned enterprises, will continue to reduce fiscal risk and improve value for money.”
The strategy for the remainder of the year, the Minister said, was straightforward as the Government “will preserve the revenue gains realised at mid-year, hold operating spending to target, executing the adjusted capital programme and implementing the state-owned enterprise actions” needed to monitored arrears.
“These steps will keep the programme on track and maintain the path
to debt sustainability. The revised framework maintains fiscal discipline and protects priority social and investment spending. It preserves a strong primary surplus and sustains the credibility earned in recent years, while keeping space for targeted interventions where needed,” he said.
That is in order to maintain the country’s path towards achieving the targeted debt to gross domestic product ratio of 60 per cent by 2035, the Member of Parliament for Christ Church East Central said, while inviting “members to note the progress recorded, the revised outlook to year-end and the steps being taken to support growth, protect the vulnerable and strengthen the public finances of Barbados”.
Straughn said excise tax underperformed by $12.36 million – $107.91 million versus the target of $120.25 million; other goods and services exceeded target by $9.44 million – $48.62 million collected versus the $39.1 8 million target; property revenue was $170.27 million – $19.13 million below the target $189.36 million; international trade taxes of $122.21 million were $17.05 million below the $139.26 million target; and non-tax revenue was $83.11 million, $17.26 million below the $100.37 million target.
The total expenditure for the first half of the fiscal year was $1 910.42 million, $69.3 5 million above the target of $1 841.07 million.
Government, he said, will authorise a targeted application of up to $9.9 million from the sewage levy to reduce arrears at the Barbados Water Authority, to be paired with a disciplined transfer execution and stronger collections across entities.
The Minister explained that the report before the House covered April to September 2025 and presented the revised framework to March 2026, identifying the main risk and actions for the second half of the fiscal year.
“The international backdrop is still uneven, global growth remains moderate, but inflation pressures have eased, and travel demand has remained supported.
“Against that backdrop, Barbados continues to expand to revenue out-turn at mid-year. At the same time, expenditure execution remains broadly manageable relative to programme objectives.” ( AC)
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