Minister of Finance Camillo Gonsalves has announced that the government of St. Vincent and the Grenadines will implement its EC$1.85 billion budget for 2025 without increasing taxes or fees.
The commitment was made during his budget presentation to Parliament, where he also highlighted the government’s achievements in 2024 despite the challenges posed by Hurricane Beryl.
“We are already recovering. We are already rising again, and we are energetically building a stronger, more resilient, more inclusive, more sustainable St. Vincent and the Grenadines,” Gonsalves told Parliament on Monday.
The finance minister emphasized that 2024 showcased the government’s dedication to addressing urgent needs while pursuing long-term development goals. He highlighted the swift response to Hurricane Beryl, which directly affected 19,000 people, describing the government’s actions as both “tireless and compassionate.”
While noting the extraordinary efforts required to balance disaster recovery with competing developmental priorities, Gonsalves stated, “This government has worked hard, has worked smart, and has worked well in the people’s interests.”
The 2025 budget allocates EC$127 million to disaster recovery and reconstruction, targeting those affected by both Hurricane Beryl and the 2021 eruption of La Soufrière volcano.
Key initiatives for 2025
Minister Gonsalves detailed several major initiatives included in the budget:
- Salary Increases: A 2.5% salary hike for civil servants, completing a negotiated 7% increase over three years.
- Infrastructure Development: Construction of over 70 road stretches (EC$125 million allocation), completion of the EC$668 million Kingstown cargo port, and significant advancements on the Arnos Vale Acute Care Hospital.
- Housing and Social Assistance: Construction of 1,000 homes for those affected by disasters and distribution of EC$30 million in aid to farmers, fishers, small businesses, and vulnerable citizens.
- Education and Youth Development: Building new schools, providing 2,600 laptops for students, launching a mathematics support program, and introducing a youth volunteerism initiative (GYVE).
- Sports and Culture: Starting semi-professional netball and football leagues, supporting Olympic athletes, and launching a national orchestra.
- Tourism Growth: Beginning construction of the Marriott Resort at Mt. Wynne and welcoming a record number of visitors.
The budget also emphasizes healthcare improvements, with plans to construct 11 clinics nationwide and introduce free transportation services for people with disabilities.
Gonsalves reflected on the government’s 2024 accomplishments, including the addition of over 400 hotel rooms with the opening of Sandals Resort and Holiday Inn Express, expanded international flights, and comprehensive distribution of EC$27 million in supplies and production support to farmers and fishers.
Despite Hurricane Beryl’s impact, the nation recorded its fourth consecutive year of robust economic growth and increased employment.
Budget details
The 2025 fiscal package represents a 14.4% increase over the previous year, broken down into recurrent expenditure (EC$1.15 billion) and capital expenditure (EC$698.6 million). Current revenue is projected at EC$907.7 million, reflecting an 11.9% increase over 2024, but leaving a deficit of EC$5.6 million.
Gonsalves described the budget as a blend of recovery and long-term development, saying, “It prioritizes our disaster response while addressing our visionary investments in major infrastructure projects and innovative social interventions.”
The budget was approved after an overnight parliamentary debate, underscoring the government’s commitment to delivering both immediate relief and sustained progress for the people of St. Vincent and the Grenadines.
