In a comprehensive parliamentary address spanning nearly five hours on December 16, 2025, Prime Minister Dr. Terrance Drew presented a transformative EC$1.07 billion national budget for the 2026 fiscal year. The financial blueprint outlines a strategic shift away from dependency on the Citizenship by Investment Programme while addressing critical national priorities including healthcare enhancement, economic expansion, crime reduction, infrastructure modernization, and cost-of-living mitigation measures.
The budget framework establishes a three-year fiscal strategy emphasizing strengthened public financial management, increased governmental transparency, and improved service delivery mechanisms. Dr. Drew highlighted the necessity of this approach given current economic challenges, particularly declining CBI revenues that have traditionally served as the Federation’s primary economic pillar.
Financial projections indicate total revenue and grants for 2026 are estimated at $894.8 million, with recurrent revenue expected to reach $855.7 million. The government anticipates recurrent expenditure of $879.8 million for 2026, alongside capital expenditure and net lending projected at $167.2 million. Medium-term forecasts suggest revenue growth to $899.1 million with average annual expenditure of $892.4 million for 2027-2028.
The budget addresses the 2025 fiscal deficit, where government expenditure reached $1.04 billion (35.6% of GDP) against revenues of $732.7 million. Public debt is projected to rise to $1.7 billion by year-end 2025, underscoring the need for fiscal reforms.
Notably, the Prime Minister announced that public servants will receive traditional double salary payments, while government officials and their advisers will be excluded from this benefit. The administration has committed to implementing tax policy reforms designed to create a more equitable and modernized tax system supported by enhanced compliance measures.