As Barbados’ Mia Mottley administration prepares to unveil its 2026 Financial Statement and Budgetary Proposals, prominent economists from the University of the West Indies present contrasting visions for the nation’s fiscal direction. The debate emerges alongside recognition that several measures from last year’s budget have successfully reached ordinary citizens.
Dr. Ankie Scott-Joseph, economics lecturer at Cave Hill, advocates for prioritizing revenue generation through productive industries rather than over-relying on tourism. She emphasizes tourism’s vulnerability to geopolitical uncertainties, citing the recent departure of Trinidadian conglomerate ANSA McAL as evidence of sector instability. Dr. Scott-Joseph warns that this over-reliance will inevitably pressure value-added tax (VAT) and tourism income, necessitating accelerated investment in renewables and manufacturing to build economic resilience.
The economist acknowledges positive trickle-down effects from the 2025 Budget, specifically highlighting workers’ empowerment initiatives that increased job opportunities and wages, thereby enhancing purchasing power for lower-income earners. She also recognizes improvements in public health infrastructure, though notes these focused more on physical facilities than disease control.
In contrast, Dr. Antonio Alleyne identifies crime reduction as the paramount priority, arguing that without addressing security concerns, all other economic initiatives will prove ineffective. He contends that crime directly threatens tourism revenue and consequently undermines diversification efforts. While acknowledging debt management progress—with levels now below 100% of GDP—Dr. Alleyne urges authorities to exploit this favorable window for strengthening social programs and maintaining currency stability.
The 2025 Budget introduced several significant measures including: a Resilience and Regeneration Fund replacing the Catastrophe Fund; new taxes on salted snacks alongside duty-free fruits; reduced corporation tax on residential mortgages; enhanced union fee allowances and automatic minimum wage increases; extended reduced VAT on household electricity; and cuts to regional travel charges.