Prime Minister and Minister for Finance, Hon. Philip J. Pierre, has outlined significant government expenditure across wages, debt servicing, and social support as he presented details of the Estimates of Revenue and Expenditure for the 2025/2026 fiscal year.
Addressing Parliament, Pierre revealed that government spending on wages and salaries is projected to reach approximately $606.9 million by the end of the fiscal year.
The figure represents a marginal 0.2 percent decrease, or $1.4 million below the approved amount for 2025/2026, while reflecting a 1.7 percent increase over actual spending in the previous fiscal year.
Laying out the Estimates of Revenue and Expenditure on March 24th before Parliament, Pierre highlighted several key payments contributing to the wage bill, including a $500 bonus paid to all civil servants in December 2025, totaling $4.8 million, and a $600 bonus issued to pensioners in November 2025 at a cost of $1.9 million.
Additional allocations included $7.6 million in salary increases to public servants in keeping with a 2 percent adjustment agreed under collective bargaining, along with $3.7 million paid to teachers as part of a material allowance.
On debt obligations, he assured that Saint Lucia continues to meet its commitments without difficulty.
“For this fiscal year, we anticipate that total debt service will amount to $362.8 million,” he stated, noting this reflects a 21.8 percent increase over the previous year, largely due to the expiration of grace periods on loans secured during the COVID-19 pandemic.
Despite the increase, principal repayments declined by 3.4 percent to $128.8 million, while interest payments came in 1.2 percent below the approved amount at $234 million.
The Prime Minister also detailed government transfers, which totaled $326.7 million for the fiscal year, representing an 18.3 percent increase over the approved figure.
Among the allocations, more than $1.6 million was directed toward back pay for employees of statutory bodies, while grants totaling $3 million were provided to social partners, charitable organizations, and religious groups supporting vulnerable populations.
Direct public assistance exceeded $13 million, while over $120 million was issued as subventions to statutory boards and parastatal agencies.
Government also committed $10 million toward the home care programme to expand services, along with more than $3 million to cover commission expenses associated with the new St. Jude Hospital.
Pierre further announced an increase in tourism marketing, with an additional $3 million allocated to strengthen the sector. “In addition, we have expanded our marketing efforts through joint marketing with the Saint Lucia Hotel and Tourism Association,” he said, noting that these initiatives are further supported by the strategic use of the tourism levy.
The Finance Minister’s presentation forms part of ongoing debate on the national budget, which outlines government priorities and expenditure for the fiscal year.
