Dominica’s 2025-2026 National Budget: Key allocations and strategic investments announced

Dominica: Minister for Finance, Economic Development, Climate Resilience and Social Security Dr Irving McIntyre presented the national budget for fiscal year 2025-2026 for the Commonwealth of Dominica as he opened the new parliamentary session. It took place on Friday, July 25, under the theme “Balance in Resilient Development and Fiscal Discipline for Sustainable Growth.” The Estimates of Expenditure totaled to EC$1,213,494,398.00 ($679.9 million) for the upcoming year. 

During his presentation, Minister McIntyre said, “I propose total recurrent expenditure of $679.9 million for the Fiscal Year 2025/2026, a slight increase of only $0.5 million over last year’s recurrent expenditure estimates.” He further highlighted the government’s efforts to advance the nation’s economic resilience, infrastructural development, and social protection. 

Recurrent Expenditure: 679.9 Million allocated

The budget for the fiscal year 2025-2026 includes mandatory expenses such as debt servicing and funding for the operation of government services.

• The Ministry of Finance, Economic Development, Climate Resilience and Social Security will receive the largest share of the national budget - EC$292.0 million (43%) of which:.

1. EC$128.0 million is allocated for debt servicing
2. EC$47.3 million is earmarked for retirement benefits
3. EC$8.4 million will go to the Caribbean Catastrophe Risk Insurance Facility (CCRIF) for insurance premiums covering tropical cyclones, earthquakes, and rainfall events.

• The Ministry of Health, Social Services and Wellness has been given $72.8 million (10.7%) which highlights the importance of a healthy population for economic growth.
• The Ministry of Education, Human Resource Development, Vocational Training and National Excellence has been given EC$71.3 million (10.5%), which shows the government’s dedication to education.
• The Ministry of Home and Legal Affairs has been given EC$69.2 million (10.2%) for public safety and the legal system.
• The Ministry of Public Works, Public Utilities and the Digital Economy is allocated EC$57.4 million (8.4%), an investment in both physical infrastructure and digital transformation.

Key Spending Areas

• Goods and Services: EC $232.7 million (34% of the recurrent budget)
• Wages and Salaries: EC $180.1 million (26%) which includes EC $12 million for proposed salary increases for fiscal years 2024/2025 and 2025/2026, with negotiations going on with public sector unions.
• Transfers and Subsidies: EC$133.6 million (20%) which includes:.

            Public assistance

            Retirement benefits

            Subventions to statutory bodies such as the Dominica-China Friendship Hospital

            Contributions to regional and international organizations

• Interest Payments: EUR 49.7 million
• Debt Repayment and Sinking Fund Contributions: Euro 78.3 million

Sector Priorities and Strategic Investments

• Health and Education

Large-scale investment will continue in the health and education sector, which aims to improve access, infrastructure and service quality. This includes staff development, infrastructure improvement and support to institutions across the island.

• Infrastructure and Housing

Infrastructure projects are at the core of the government’s focus this year, which includes development of roads, bridges, and climate resilient housing within the Housing Recovery Project. These projects are aligned with Dominica’s goal to be the world's first climate resilient nation.

• Agriculture and Tourism

Support in agriculture and fisheries includes training, tools and financial aid, while improvement in tourism will be boosted through better marketing, site upgrades and eco-tourism investments.

• Security and Governance

The budget is focused on community safety through allocations for national security measures, justice system improvements, and better emergency preparedness.