PM Dr Terrence Drew presents 2026 National Budget with focus on Economic Growth and Social Development

St Kitts and Nevis: Prime Minister Dr Terrance Drew presented the 2026 National Budget to the St Kitts and Nevis Parliament, under the theme of “Investing in People and Progress”. This is his fourth budget as the Minister of Finance of the twin island nation. The Parliament seating for the budget started on Tuesday, December 16, in the National Assembly in St Kitts and Nevis. The parliamentary discussion for allocating the budget will continue for the next two days, on December 17 and 18, 2025.

It focused mainly on economic resilience, social development, health, education, and sustainable growth. The budget presented by the government is EC$1.074 billion for the 2026 fiscal year, which is less than last year’s budget of $1.127 billion. He said that the government is putting in place the key measures for a robust, inclusive and environment friendly nation.

Prime Minister Dr Terrance Drew said that the 2026 budget is a call to invest in people, strengthen institutions and to build a better future. “This budget is the budget of process, it is about jobs, jobs and jobs, it is about investing in people, it is about enhancing the health care sector, it invests boldly in people, it is for strong housing,” noted PM Drew.

Allocation of the 2026 budget

The Prime Minister presented a budget of EC$1.074 billion for the 2026 fiscal year. The total revenue and grants presented amounts to EC$894.8 million, which will also be used for a capital spending of almost EC$167.2 million to support national development projects.

Out of the total budget, $72.8 million has been allocated to the Prime Minister’s Office - $69.3 million for recurrent expenditure and #3.5 million for capita; expenditure in 2026. This budget will be used by the government to improve civil services, citizen engagement, and stronger partnerships.

The agriculture sector is proposed with a $21.3 million budget, with $14.6 million for recurrent expenditure. The majority of these funds will be allocated to research into climate smart agriculture, disease control, soil and water management, and crop and livestock diversification. The Cannabis Industry will continue to be a priority in 2026. The rest of the $6.7 million budget will be used for capital expenditure and investments.

A budget of $57.2 million has been proposed to improve the tourism sector in fiscal year 2026. Using these funds, the government will take steps to enhance the sector using the Global Sustainable Tourism Council Criteria and through airlift and cruise tourism.

The Ministry of Public Infrastructure will receive EC$26 million for recurrent expenditure to create more technical job opportunities and improve national infrastructure. For capital expenditure, EC$48.5 million has been proposed for coastal development, including resilience building, road rehabilitation, slope stabilisation and well drilling, along with acquisition of water meters including heavy machinery and related works.

Double salary announced

One of the major announcements made by the Prime Minister during the 2026 National Budget was the extra payment of one month called “Double Salary” to civil servants, Government Auxiliary Employees (GAEs), pensioners and STEP workers. 

The extra payment will be issued on Friday, December 19, 2025, right before the holiday season. The Double Salary initiative excludes Ministers, government advisors, and other people working in the administration.

Healthcare and Education Sectors

The health sector presented a proposal to receive an EC$98.8 million budget, which includes EC$83.8 million for routine expenses and EC$15 million for capital investments. In addition, funds from this budget will also be used to improve services, specialized care and climate smart health facilities.

Education saw an allocation of $122.8 million in 2026, which is a 14.8 percent increase from previous year. The funding includes $14.8 million for capital expenditure to support school improvements, smart class rooms, teacher development, and upgrades in Basseterre Climate Smart school. $108 million has been proposed for recurrent expenditure.

National security and infrastructure

The government proposed $87.3 million for national security, which included police station improvements, disaster management and the opening of a second fire station in Nevis. PM Terrance Drew explained that the government will invest $84.1 million as a recurrent expenditure on national security and another $3.2 million in infrastructure, to provide additional equipment, bringing the total budget to EC$87.3 million.

The major initiatives are Safety and Security Improvement Programme, Refurbishment of Police stations, Traffic Management system and other procurements. Implementing disaster management will also be a top priority of the government.  

Economic Growth, Revenue, and Diversification

Prime Minister Drew reported on stable economic growth, very low unemployment at under 5 percent, and good results in tourism and agriculture, due to a strong and disciplined fiscal framework for the period 2026–2028. The framework includes good public financial management, emphasising greater transparency, stronger institutions, and better service delivery to the public.

The total revenue and grants for the year 2026 is expected to be EC$894.8 million. Current revenue is expected to amount to EC$855.7 million by 2026 and EC$899.1 million over the medium term. Recurring expenditure is forecast at EC$879.8 million in 2026, and an average of EC$892.4 million based on the 2 years after that.

In the meantime, capital expenditure is projected to amount to EC$167.2 million, and an average of EC$115.8 million over the medium term as a result of sustained spending on national development objectives.