Prime Minister and Minister for Finance Philip J. Pierre presented the Estimates of Revenue and Expenditure for the fiscal year 2025/26 to Parliament, highlighting Saint Lucia’s economic recovery, fiscal performance, and future financial projections.
Prime Minister Pierre stated that the country has experienced significant economic improvement, with unemployment falling to single digits—the lowest in living memory.
He credited this to government policies that strengthened economic resilience post-pandemic. The tourism industry recorded its best year to date, and foreign direct investment has increased.
“Our country is in a much better place than it was during the last administration’s tenure. Our government has a record of delivery and a plan for more,” Pierre declared.
Pierre provided a summary of the country’s revenue collection and expenditure for the 2024/25 fiscal year.
The total revenue amounted to $1.91 billion, derived from loan funds of $302.1 million, domestic revenues totaling $1.48 billion, grants contributing $70.5 million, and bonds accounting for $93.1 million.
Government expenditure for 2024/25 is projected at $1.8 billion, which is 5% below the approved estimate of $1.894 billion according to the island’s Prime Minister. This reduction he adds is largely attributed to lower-than-expected capital project spending, dropping from $299.3 million to $227.0 million, due to administrative bottlenecks.
Despite lower expenditures in some areas, Prime Minister Pierre says government spending increased on wages and salaries, which exceeded budget levels by over $30 million, driven by salary increases, back pay, and transfers to statutory bodies.
For the third consecutive year, the government expects a primary surplus of $77 million (1.1% of GDP), alongside a current surplus of $141 million. Pierre explained that these figures indicate that Saint Lucia is generating more revenue than its recurrent expenditures and is effectively managing its debt obligations.
“The government’s prudent debt management strategy will yield better-than-expected results compared to the initial projections in the 2024-2025 Estimates, with the overall deficit narrowing to $147.9 million from the previously projected $214 million,” he stated.
Pierre also emphasized Saint Lucia’s commitment to maintaining its creditworthiness, stating, “The Government of Saint Lucia has never defaulted on its debt obligations.”
Settling Long-Standing Government Debts The government has committed to addressing legacy debts, including:
* $40 million for land acquisitions that had remained unpaid for generations.
* $25 million to settle outstanding health sector supply costs, some dating back to the COVID-19 pandemic.
In addition, Pierre announced an $8 million allocation to WASCO to address its financial obligations and an additional $10 million to the Millennium Heights Medical Complex (MHMC).
As it relates to the outlook for 2025/26, Pierre reiterated that Saint Lucia is on a path to economic recovery, with a focus on putting people first and ensuring that economic prosperity is felt across all constituencies. The upcoming fiscal year’s budget will continue efforts to rebuild the country while maintaining responsible fiscal management.
“Our government intends to settle these debts as soon as possible,” he assured Parliament.
Stay tuned to Saint Lucia Daily Post for more budget presentation and breakdown of the 2025/26 revenue and expenditure allocations
