Prime Minister Godwin Friday has disclosed a staggering national debt of EC$3.54 billion (US$1.31 billion) as of December 31, 2025, painting a dire fiscal picture during his presentation of the 2026 Estimates of Revenue and Expenditure to Parliament on Thursday. The revelation came as Friday’s New Democratic Party administration, elected in a landslide victory on November 27, 2025, took office after unseating the Unity Labour Party that had governed for nearly 24 years.
The debt figure represents a substantial EC$400 million more than previously estimated by the new government and shows a 13% increase compared to the same period in 2024. Friday characterized the previous administration’s spending patterns as irresponsible, stating they had spent “like a drunken sailor” during the election year.
Breaking down the debt structure, domestic debt reached EC$993 million, marking a 1.1% year-on-year increase, while external debt surged to EC$2.55 billion, representing an alarming 18.7% increase. A particularly concerning element was the public sector overdraft, which ballooned to nearly EC$200 million despite parliamentary authorization limiting it to EC$85 million.
The 2026 budget of EC$1.89 billion, approved by lawmakers, represents a 2% increase over the 2025 budget. It includes recurrent expenditure of EC$1.31 billion and capital expenditure of EC$577.2 million. Financing will come from current revenue of EC$906.9 million and capital receipts of EC$978.7 million.
Friday emphasized the severe debt servicing burden, revealing that 39.5 cents of every tax dollar collected will be allocated solely to debt repayment, totaling EC$358 million for 2026. This includes interest payments of EC$120.7 million, amortization of EC$215.4 million, and sinking fund contributions of EC$22 million.
The Prime Minister defended his government’s approach, stating they must first address the cost-of-living crisis while gradually cleaning up the fiscal mess inherited from the previous administration. The disclosure has sparked intense parliamentary debate about the nation’s economic future and the challenges facing the new government.