-Prime Minister Dr. Terrance Drew has presented an EC$1.07 billion (One EC dollar=US$0.37 cents) national budget to Parliament telling legislators that the fiscal package is being guided by a robust framework which sets out the government’s fiscal strategy for the next three years.
Drew, who is also the Finance Minister, said that the budget was being presented under the theme ‘Investing in People and Progress’ while acknowledging that the twin island Federation continues to operate within a ‘complex’ and often ‘volatile global environment’.
He said despite these challenges the government has remained resilient and focused, meeting the demands of 2025, with determination, while laying a strong foundation for 2026.
Debate on the budget is due to begin on Wednesday and Prime Minister Drew said that ‘the robust framework’ will place emphasis on strengthening public financial management across the public sector.
‘We have to be responsible, increasing transparency and accountability, institutional strengthening and improving delivery of service to our people. The framework prioritises accurate costing of government services and advances tax policy reforms designed to deliver a more equitable and modernised tax system, supported by stronger compliance measures.’
He said guided by this framework, the government is positioned to generate revenue in line with the projected gross domestic product (GDP) growth.
Prime Minister Drew said that total revenue and grants are estimated at EC$894.8 million for 2026, with recurrent revenue projected to yield US$855.7 million for 2026 and US$899.1 million for the medium term.
Drew said that the amount for recurrent expenditure is expected at EC$879.8 million for 2026 and an average of EC$892.4 million for 2027 and 2028 and that government is projecting EC$167.2 million for capital expenditure and net lending in 2026, while an average of EC$115.8 million is forecasted to be expended for the medium term’.
‘We are not daunted, however. We remain laser-focused on mitigating the identified risks and, more importantly, finding the opportunities that come with these changes. As we chart the course for investing in people and progress, we will endeavour to remain good stewards of the country’s finances.
‘Madam Speaker, in assessing the anticipated fiscal outturn for 2025 and based on data available as of November 2025, we estimate by year-end the government expenditure would be $1.04 billion, or 35.6 per cent of GDP. Total revenue, Madam Speaker, is projected at $732.7 billion.’
Prime Minister Drew said that this revenue performance relative to 2025 approval estimate is projected to be affected attributable to the shortfall in receipts from the Citizenship by Investment Programme (CBI), through which foreign investors are granted citizenship of the island in return for making a substantial investment in the socio-economic development of the Federation.
‘Again, a lot of our economy was dependent on the CBI programme. However, in this budget, we have made sure to start to wean ourselves off from depending so heavily on the CBI programme. So what comes in after a while will just be gravy for us, Madam Speaker, because the receipts are difficult to predict.’
Prime Minister Drew said that one international crisis can certainly affect the country.
On the issue of the public debt, Prime Minister Drew said that the debt increased by 15.8 per cent from the previous year.
‘.equally important, we are keeping a watchful eye on the management of the public sector debt. In terms of the outlook, as at end December 2025, the total public sector debt is projected to be EC$1.7 billion, which represents an increase of EC$58.7 million.
‘That is the investment that we made in our people, or 3.6 per cent as compared to 2024. The rise in the debt stock was mainly attributed to an increase in central government debt, which rose by EC$97.4 million, or 15.8 per cent’
Prime Minister Drew said that the medium-term outlook shows a slight increase initially in the debt-to-GDP ratio at the end of 2025.
He said that it is forecasted to be 58.7 per cent, still below 60 per cent, a 1.1 percentage points increase, compared to 57.6 per cent for December 2024.
However, Prime Minister Drew said that over the forecasted period, 2026 to 2028, the debt ratio is expected to remain below the 60 per cent benchmark set for the Eastern Caribbean Currency Union (ECCU) member countries to achieve by 2035.
‘We have already achieved what they say we should achieve in 2035. We have already achieved it, Madam Speaker. So even with the challenges, we are still maintaining that significant achievement. The debt-to-GDP ratio is forecasted to decline in 2026 to 57 per cent and continue its downward trajectory to 54.9 per cent in 2027 and 51.9 per cent in 2028.’