OP-ED
THE UWI FIVE ISLANDS CAMPUS OECS BUDGET WATCH 2025
“BEYOND THE NUMBERS: WHAT THE 2025 BUDGETS REVEAL ABOUT PRIORITIES AND POLITICS IN THE EASTERN CARIBBEAN”
By Professor C. Justin Robinson
Pro Vice-Chancellor and Principal, UWI Five Islands Campus
Budgets are not just financial plans—they are political statements. In 2025, Eastern Caribbean governments will reveal what they value and where they believe the future lies. From climate resilience to youth savings accounts, mega-infrastructure to anti-crime crackdowns, this year’s budget policy initiatives show the region at a crossroads: modernise, protect, diversify—or sink into deeper debt. Let us see what each country is putting on the table.
Antigua and Barbuda: Resilience Without New Taxes
Antigua’s 2025 budget theme—“Creating a Resilient, Harmonious, and Prosperous Nation”—is not just a slogan. It is backed by action.
- Debt repayments and arrears clearance were front-loaded in 2024. Over EC$50 million in backpay and contractor arrears were paid off.
- No new taxes. Instead, the government is tightening tax compliance, especially on the ABST (VAT).
- Major capital allocations went to roads, affordable housing, and education.
- A 7% pension increase helped retirees cope with inflation.
This is a cautious but confident budget: one eye on growth, the other on debt.
St. Kitts and Nevis: From CBI Shock to Social Innovation
After a rough 2024, St. Kitts’ 2025 budget pivots toward sustainability.
- The ASPIRE Program, launched in 2024, creates youth savings accounts. Over 2,000 children are already enrolled.
- The government invests in renewable energy, smart housing, and water infrastructure.
- Education is now free at college level, with EC$120 million allocated—the largest education budget ever.
This is one of the region’s boldest social budgets. But without CBI windfalls, it will rely on better tax compliance and grant support to stay afloat.
Saint Lucia: Infrastructure Meets Compassion
Saint Lucia is still in “Year of Infrastructure” mode, but 2025 adds a more social focus:
- National Health Insurance is being rolled out—a big win for equity.
- The airport service tax was cut by 50%, making travel cheaper.
- Pensions were made tax-free for lower-income retirees.
- A tax amnesty was extended, and new police resources tackle regional crime.
Saint Lucia is threading the needle: growth through infrastructure, while keeping its fiscal deficit below 3% of GDP, and supporting the vulnerable.
St. Vincent and the Grenadines: Big Spending, Bigger Ambitions
No budget in the region is as ambitious—or controversial—as SVG’s.
- The EC$600M Modern Cargo Port is under construction.
- A record 1,110 police officers are being hired amid a regional crime wave.
- Thousands of homes are being rebuilt post-Hurricane Beryl, along with coastline protections and school repairs.
But the cost? A 21% GDP deficit and debt are nearing 95% of GDP.
The government calls it “bold and visionary.” Critics call it “unsustainable.” Either way, this budget will shape SVG’s future for decades.
Grenada: Pension Reform and Hydrocarbon Dreams
Grenada’s 2025 budget is unusually forward-thinking.
- Public pension reform was enacted in 2024, and EC$11.3M is allocated for the new contributory scheme.
- The MNIB was replaced by IMEXA, a public-private venture to support agro-exporters.
- A new oil and gas roadmap could finally tap Grenada’s offshore potential.
- No new taxes, and disaster clauses are being used to pause debt payments after Hurricane Beryl.
Grenada is spending more than usual, but it is spending smart, using buffers and grants, and committing to returning to fiscal rules by 2026.
Dominica: Resilience Is the Brand
Dominica continues its drive to become the world’s first climate-resilient nation.
- The international airport, Geothermal plant, and Housing revolution are all in full swing.
- A Natural Disaster Risk Fund is being operationalized.
- Excise taxes on sugary drinks and diesel are fully rolled out in 2025.
CBI funds continue to bankroll major works—but the government is signalling a shift toward fiscal consolidation, with a nearly balanced primary budget in 2025.
Dominica is betting the house on resilience—and still holding the line on social support.
Final Takeaway:
The 2025 budgets show a region struggling to juggle growth, resilience, and fiscal reality. But there are also bold ideas:
- Youth equity funds.
- Climate-smart infrastructure.
- Pensions for all.
- Tax amnesties and VAT crackdowns.
- Mega-projects with legacy value.
Some governments are trying to do it all, while others are tightening their belts. The coming year will test who got it right and who overreached.
Prof. C. Justin Robinson, a Vincentian and UWI graduate, holds a BSc in Management Studies, MSc in Finance and Econometrics, and PhD in Finance. With over 20 years at UWI, he has served in various leadership roles, including Dean and Pro Vice Chancellor, Board for Undergraduate Studies. A Professor of Corporate Finance with extensive research publications, he is actively involved in regional financial institutions and is currently the Principal of The UWI Five Islands Campus in Antigua and Barbuda.
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