The government of St. Vincent and the Grenadines collected EC$70 million more in tax revenue during the first eight months of 2025 than in the same period last year, but higher spending left a modest current account deficit of EC$718,000.
Finance Minister Camillo Gonsalves told Parliament that between January and August, current revenue reached EC$583 million compared to EC$517 million in 2024 — a 12.8% increase. Total revenue and grants rose to EC$624 million, up from EC$559 million last year.
Corporate tax collections climbed 22% to EC$40 million, which Gonsalves said reflects stronger business performance. Taxes on goods and services amounted to EC$182 million, up from EC$175 million, while taxes on international trade increased by 21% to EC$159 million. Revenue from the sale of goods and services also grew sharply to EC$75.4 million from EC$61 million in 2024.
The finance minister noted that despite the robust revenue gains, total expenditure reached EC$841 million as of August 31, up from EC$728 million a year earlier. Current spending stood at EC$584 million, nearly matching current revenue and leading to the small deficit.
Gonsalves attributed much of the rise in expenditure to higher employee compensation, which totalled EC$262 million — up 7.1% due to a 2.5% public sector salary increase, new hires, and higher contributions to the National Insurance Services. Spending on goods and services jumped 24%, driven largely by post-Hurricane Beryl housing support for displaced persons.
Capital spending also accelerated, with EC$257 million spent so far, up 34% from the same period last year. The minister said capital inflows — largely from grants and loans, including EC$33 million from Taiwan — accounted for about 64% of the budgeted total to date.
While recurrent expenditure rose, Gonsalves said the fiscal current account balance improved significantly compared to the EC$19.3 million deficit recorded in 2024. However, the overall balance showed a wider deficit, reflecting the government’s ambitious capital investment program.
“This year, current revenue has performed well, increasing significantly and already accounting for just over 64% of the budget,” Gonsalves said, adding that the government remains committed to balancing strong revenue growth with essential social and reconstruction spending.
