In a scathing parliamentary address on Thursday, Opposition Leader Ralph Gonsalves delivered a comprehensive critique of the New Democratic Party’s EC$1.89 billion fiscal package for 2026, characterizing the government’s approach as financially perilous and fundamentally inadequate for current economic challenges.
The North Central Windward MP and former prime minister asserted that the EC$105.5 million deficit contained within the Estimates of Revenue and Expenditure surpasses the combined deficits of four previous years under his administration, despite those periods encompassing extraordinary crises including COVID-19, volcanic eruptions, Hurricane Elsa, and the devastating impact of Hurricane Beryl which destroyed over 90% of structures in the Southern Grenadines.
Gonsalves dismissed Prime Minister Godwin Friday’s budget presentation as “an underwhelming and laboured performance” filled with “self-congratulation” rather than substantive policy. He warned that the current fiscal approach represents “dangerous treading water while gasping for breath,” particularly criticizing the recurrent budget framework as unsustainable.
The opposition leader raised serious concerns about the government’s borrowing strategy, noting the EC$200 million in projected local loans represents twice the amount approved for 2025. He highlighted the irony of this approach from a party that previously criticized what it termed “ballooning debt and huge fiscal deficits.”
Gonsalves presented detailed financial analysis indicating that when accounting for current account deficit, amortization payments, and sinking fund contributions, the government faces a total financial gap exceeding EC$401.4 million before even addressing capital expenditures. He questioned the feasibility of raising EC$573.9 million through external loans, noting that only EC$385 million is allocated to the capital budget while the remainder appears directed toward recurrent spending.
The former prime minister projected significant implementation challenges, suggesting that local loan financing would not materialize until late March at the earliest due to market constraints. He warned government MPs that community projects promised in the budget would face substantial delays and predicted potential difficulties in meeting monthly salary obligations and essential bill payments.
Gonsalves concluded that the budget framework is “unsuited to these perilous times” and unlikely to generate meaningful economic growth, characterizing it as a collection of “little bits and pieces with doubtful funding” rather than a coherent economic strategy.