On Tuesday, Prime Minister Philip J. Pierre delivered his address in the House of Parliament, outlining the government’s projected capital expenditure, revenue estimates, and financing for the fiscal year 2025-2026.
The Prime Minister began by highlighting the government’s planned capital expenditure, which is estimated at $325.6 million for the upcoming fiscal year. “This projected amount of $325.6 million represents an 8.8 percent increase over the amount approved for 2024/2025,” he noted. The largest share of this budget, $122.8 million or 27%, is allocated to the Department of Infrastructure, Ports and Transport, with significant investments in road development, renewable energy projects, and infrastructure maintenance.
The Prime Minister also detailed major projects under different ministries, including the St. Jude Hospital Reconstruction, with an allocation of $29.16 million, and a $16.6 million budget for the Ministry of Education, primarily for school repairs. Health and security expenditures for the year are projected at $433.9 million, with contributions from the newly increased Health and Security Levy, which is expected to generate $40.8 million.
In his address, Pierre discussed the government’s efforts to bolster revenue, which is projected at $1.71 billion, an 8.7% increase over the previous year.
“This increase is expected to be fueled by growth in tourism and planned construction projects in the public and private sectors,” he explained.
Key sources of revenue include taxes on income, international trade transactions, and domestic goods and services, with significant increases in non-tax revenue from the Citizenship by Investment Programme, expected to contribute $85 million to the national economy.
Pierre emphasized the government’s prudent fiscal management despite the projected $201.5 million deficit for the fiscal year.
“We project an overall deficit of $201 million, which is within prudential limits,” he said, attributing the gap to increased capital expenditure and debt repayment requirements.
According to the Saint Lucian Leader, the financing gap will be addressed through a combination of foreign and domestic debt financing, including loans from international bodies such as the Republic of China on Taiwan and the Caribbean Development Bank.
Prime Minister Pierre thanked public servants, civil society, and the staff of the Ministry of Finance for their input and collaboration in developing the estimates.
“These estimates are intended to provide just the numbers associated with some of the transformative initiatives my government intends to undertake,” Pierre stated.
