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2024-08-14 09:05:29
St Kitts and Nevis prepares to present its 2026 budget, with a focus on health, education, economic diversification and climate resilience.
Prime Minister Dr Terrence Drew set to present the 2026 budget in St Kitts and Nevis, emphasizing investments in key sectors for national progress.
St Kitts and Nevis: The government of St Kitts and Nevis is all set to present the 2026 budget in the national parliament today. Under the theme- “Investing in People and Progress,” the government is expected to put major focus on the sectors including health, education, economic diversification and climate resilience.
Prime Minister Dr Terrance Drew will present his fourth budget as a Minister of Finance in the parliament. He asked the citizens to stay tuned to the budget address as the major focus will remain economic resilience, digital and infrastructure growth and other health transformation and education reform.
Associates Times will provide live updates on the budget address; stay tuned to the site for the latest details. We will provide detailed information on the budget allocation to different sectors of development in St Kitts and Nevis.
Last year, the government presented a $1.127 billion budget in the national parliament of St Kitts and Nevis.
PM Terrance Drew announced the double salary for the civil servants, government auxiliary employees (GAEs), pensioners and STEP workers serving both St Kitts and Nevis. He expressed delight in announcing an extra payment of one month's salary commonly termed "Double Salary."
The additional payment will be issued on Friday, December 19, 2025 in the wake of the upcoming holiday season. The payment will exclude the ministers in the governments, advisors and other people in the government.
PM Terrance Drew said that they focused on modernising the tax system and advancing long-overdue reforms, including the Social Security pension programme and the implementation of National Health Insurance.
He underscored the urgency of protecting the Social Security system, describing it as the country’s most important and reliable social safety net. Emphasising collective responsibility, he said preserving its financial health is essential to ensure the programme remains solvent and capable of supporting future generations.
He noted that substantial groundwork has already been completed on National Health Insurance, adding that successfully delivering pension reform, universal health coverage, and long-term Social Security sustainability would mark significant milestones in national development.
On tax reform, the Prime Minister explained that a modern, efficient tax system is critical to building a stable revenue base, reducing economic vulnerability, and enhancing the country’s appeal as a place to do business.
He noted that tax revenues finance essential public services and innovation, directly benefiting citizens. PM Drew added that the Ministry will take a targeted and determined approach to clearing tax arrears, while reaffirming that there will be no increase in tax rates. However, he made it clear that existing liabilities must be honoured.
PM Terrance Drew stated that the budget he shared in the parliament is people centred as it has covered every sector. The 2026 budget is the determination of the St Kitts and Nevis as it is resilience, environmental sustainable and with developmental vision.
He said that they envision the nation that is socially grounded, fiscally strong as the budget is the vote of the confidence as they are laying the foundation of the resilience, sustainable and inclusive St Kitts and Nevis.
This budget is the budget of process, it is about jobs, jobs and jobs, it is about investing in people, it is about enhancing health care sector, it invests boldly in people, its for strong housing.
He said that the budget is the collective pledge to work for the development of St Kitts and Nevis as the party has worked to create an economy that works for everyone in the country.
PM Terrance Drew outlined that the government will invest $84.1 million as a recurrent expenditure in national security and further $3.2 million in infrastructure to provide additional equipment and supplies, totalling EC$87.3 million as a budget.
Major initiatives will include safety and security improvement program, the refurbishment of police stations, the traffic management system and other procurements. The implementation of disaster management will also be given priority. The country will open second fire station in Nevis and other things for the country.
Talking about the budget allocation in health sector, PM Terrance Drew outlined that the health sector is cornerstone for St Kitts and Nevis. In 2026, the investment will be made to facilitate advanced policy, governance and multi-sector procurement and other major expansion of the projects.
PM Drew noted that key demographic and public health trends including an ageing population, a declining birth rate, and an increase in vaccine-preventable infections.
He said that in 2026, the government will personalized and specialized services at both primary and secondary health care facilities.
For 2026, recurrent expenditure of EC$83.8 million has been allocated to the health sector, alongside EC$15 million in capital expenditure to support continued improvements in services and facilities. $98.8 million is the budget that has been allocated for the health sector.
He further thanked the nurses and doctors and said that the major projects will continue benefit the citizens of St Kitts and Nevis.m
In the education sector, the work will continue to provide educators, teachers and students for the modern education system in St Kitts and Nevis. The government has proposed recurrent expenditure totalling $108 million for the ministry of education.
It is proposed to be allocated $14.8 million to support capital investments, totalling $122.8 million allocation of budget for the sector in St Kitts and Nevis. The investments will continue for major projects including the upgrades, Basseterre Climate Smart School and other programmes.
This represents a 14.8 percent increase compared to the 2025 allocation.
Prime Minister Dr Terrance Drew presented $1.074 budget in the national assembly of St Kitts and Nevis for the fiscal year of 2026. He outlined the expenditure and investment for the key ministeries in the country which included:
Prime Minister's Office: $72.8 million
Prime Minister's Office will see $69.3 million for recurrent expenditure and $3.5 million for capital expenditure in 2026, totalling $72.8 million for budget. The sources will be used for civil service modernization, citizen engagement, strategic leadership and enhanced collaboration, as per the prime minister.
Agriculture Sector: $21.3 million
A total of $14.6 million is proposed to facilitate recurrent expenditure for agriculture sector, aiming to enhance the sector through strategic steps. In 2026, research will be given priority for climate smart agriculture, disease management, soil and water conservation and the diversification of crops and livestock.
The development of the Cannabis Industry will remain priority in the upcoming year. The capital expenditure of $6.7 is proposed to continue investment in a number of projects to scale up number of developments. With this, the total budget allocation for the agriculture sector will be $21.3 million.
Tourism Sector: $57.2 million
In 2026, the government will implement strategic steps to enhance tourism sector by following Global Sustainable Tourism Council Criteria. The St Kitts Music Festival will be supported to enhance the growth of the sector through airlift sector and cruise tourism. A total of $53.2 million is proposed as a current expenditure.
The capital expenditure of 4 million will be invested to further enhance the offerings of the tourism sector of St Kitts and Nevis, totalling $57.2 million budget.
Ministry of Public Infrastructure: $74.5 million
The implementation of new strategies for safe, reliable and portable water and by providing critical technical advance and support of the continued expansion of the energy sector.
In 2025, the completion of the 2 million gallon per day Basseterre Desalination Plant, the integration of well in Cayon, adding 300 gallons per day into the water systems and the organisational of the 600 gallon per day solar desalination plant.
For 2026, recurrent expenditure of EC$26 million has been allocated to recruit additional technical personnel and improve infrastructure capacity.
The Ministry has also proposed EC$48.5 million in capital expenditure which will be used for coastal development to build resilience, road construction, slope stabilisation, well drilling, procurement of water meters, heavy machinery and related works.
The Prime Minister added that the procurement of a new asphalt plant is a major priority under the capital programme.
PM Dr Terrance Drew stated that St Kitts and Nevis’ economy continues on a positive growth path, underpinned by a strong and disciplined fiscal framework for the 2026–2028 period.
He explained that the framework prioritises sound public financial management, with a focus on greater transparency, stronger institutions, and improved public service delivery. It also incorporates tax policy reforms designed to modernise the tax system, supported by more effective enforcement and implementation measures.
Within this framework, the government anticipates that revenue performance will move in line with projected GDP growth, reinforcing fiscal sustainability.
For 2026, total revenue and grants are estimated at EC$894.8 million. Current revenue is expected to reach EC$855.7 million in 2026 and EC$899.1 million across the medium term.
Recurrent expenditure is projected at EC$879.8 million in 2026, rising to an average of EC$892.4 million in 2027 and 2028.
Meanwhile, capital spending is forecast at EC$167.2 million, with an average of EC$115.8 million anticipated over the medium term, reflecting continued investment in national development priorities.
PM Terrance Drew shed light on the initiatives taken to enhance the economic power of the citizens of St Kitts and Nevis. He said that government has invested over 36 million dollars and the investment has support 23,000 thousands of people.
With budget boost wallet initiative, 20,000 thousands have been empowered for six months and the second one is VAT removal. Economy is on positive trajectory as it is predicted 2.6% GDP growth for St Kitts and Nevis and the expansion is led by the key sector such as construction, education, tourism, finance, business, agriculture and other sectors.
Prime Minister Dr Terrance Drew announced that the government is firmly committed to transitioning St Kitts and Nevis to 100 percent renewable energy by 2030, describing the target as realistic and achievable.
He outlined the operational challenges facing SKELEC, noting that ageing power generation equipment has made it necessary to rent 60 megawatts of additional capacity to meet current electricity demand. To stabilise supply, the government is now seeking further support to acquire new generators while longer-term solutions are implemented.
Prime Minister Dr Drew said renewable energy will take centre stage in 2026, with SKELEC introducing incentives for solar-powered homes. Under the proposed framework, households will be able to sell surplus electricity back to the national grid, encouraging wider adoption of clean energy.
He also highlighted the solar photovoltaic and battery storage project, which is expected to meet roughly 40 percent of the country’s electricity demand and create about 350 jobs during its construction and commissioning phases.
Between 2025 and 2030, an estimated EC$300 million will be required to upgrade and modernise the national electricity grid, ensuring it can support increased renewable energy integration.
In addition, the Prime Minister revealed that US$3.3 million in international funding has been secured to support rapid decarbonisation efforts, including initiatives to expand renewable energy education and adoption. Part of this funding will support academic and training programmes at the Clarence Fitzroy Bryant College (CFBC).
Dr Drew emphasised that the shift to renewable energy is critical to long-term economic sustainability, noting that clean energy is more cost-effective and will play a key role in reducing the cost of living by reshaping the energy sector.
PM Terrance Drew said that they passed the plastic waste reduction act to ensure that the plastic waste is tackled properly. He further talked about the passing of the National Conservation and Environmental Management act for biodiversity protection and fight with the pollution and other issues.
The beautification efforts are underway in the coastline of St Kitts and Nevis to make people keep the communities and the roads clean. He shed light on the financial support taken by the United States for the climate smart agriculture project and also talked about other steps to enhance the climate security.
Four locals Projects received response including Water Harvesting in Sandy Point, Artificial Reef Deployment, Integrated Quail and Hydroponic System and Climate Proof Blockers at Newcastle Bay.
PM Terrance Drew talked about the cyber security trainings in which around 25 students have been participated and received certificate. He said that the idea has been brought up from Canada and said that the main aim is to support digital infrastructure of St Kitts and Nevis.
PM Terrance Drew talked about the St Kitts and Nevis internet Exchange Point, aiming to enhance faster internet services to the citizens. EID of the country will empower the citizens of St Kitts and Nevis in different sectors.
By April 2026, St Kitts and Nevis is all set to launch 25,000 EID cards to ensure the safe and fastest internet services to the citizens. Work is also underway on the online passport portal and other paperless system, aiming to strengthen the country.
PM Drew added that St Kitts and Nevis has a bold transformation for border security. With a name amendment act, the border security is strengthened with advanced passenger information.
He shed light on the launch of the Electronic Travel Authorisation System (eTA), calling it a defining step towards secure, seamless and smart border management. He said that the step is excellent as it helps to enhance their security systems and talked about the biometric e-passport step has made country win the award.
PM Drew further shed light on the road accident and said that they are working to ensure the safety on the roads. He urged people to drive nicely to prevent so many accidents.
PM Terrance Drew outlined that this is the first time that St Kitts and Nevis is conducting a full course on the military to ensure the security. The military people will be graduated and the second course will be started in February 2026 as the results will arrive in January 2025.
It is aimed at enhancing the national security of St Kitts and Nevis.
PM Terrance Drew talked about the achievements made by the government of St Kitts and Nevis in the health care sector and said that it is not just privilege, it a right of the citizens. He talked about the procurement of the ambulances and shed light on the designs that were unveiled for the new climate smart hospital.
He said that the hospital the country has cannot withstand category five hurricane, so it is important to construct such healthcare system. PM Terrance Drew said that the climate change is rising, so they need to prepare so this investment is important at this period of time.
The government put cameras in hospitals to ensure safety and PM Drew mentioned that the CT scan machine. He said that the MRI machine building is nearing its completion and further shed light on the investment made in St Peter's Healthcare system.
The Ministry of Health of St Kitts and Nevis launched two-day health programme to support maternal patience. He shed light on the Children medical fund, aiming to support the families for their children's treatment.
At the JNF Hospital, several upgrades have been made including roof improvements, installation of air-conditioning across all units, and the placement of security cameras to enhance safety.
St Kitts and Nevis launched high-risk pregnancy programme to support the women and their pregnancy during the risk period. The country has nurses to monitor and treat such cases, aiming to decline the maternal deaths.
Prime Minister Dr Terrance Drew stated that the St Kitts and Nevis Citizenship by Investment (CBI) Programme has emerged as the top-ranked programme on the global CBI Index, regaining strong international confidence following a series of comprehensive reforms implemented in recent years.
He explained that the government continues to prioritise active international engagement and strategic outreach to safeguard the programme’s leadership position worldwide.
He acknowledged the contribution of the Citizenship by Investment Unit (CIU) leadership, noting that revenues generated through the programme remain a critical source of funding for national development, particularly in infrastructure expansion, healthcare improvement, and education investment.
The Prime Minister also highlighted the introduction of the country’s first Micro and Small Business Grants Programme, under which eligible small and medium-sized enterprises receive EC$10,000 grants. He described the initiative as a long-term economic support mechanism designed to stimulate entrepreneurship and strengthen the local business environment.
The Prime Minister Drew shed light on the impact of the Small Business Development Centre, noting that 100 entrepreneurs have completed training programmes focused on creating and sustaining viable, bank-ready businesses. He emphasised that the government remains committed to continued investment in the small business sector through 2026, viewing entrepreneurship as a key pillar of economic resilience and long-term growth.
He also announced that construction of the proposed Creative Arts Centre is scheduled to commence in early 2026, a development expected to expand opportunities for artists and creative professionals while strengthening the federation’s cultural and creative economy.
While calling sports an important sector for youth empowerment, PM Drew during the budget address said that it is one of the key drivers for economic growth and global engagement.
In 2025, the Ministry of Sports collaborated with the St Kitts Cricket Associations to host Australia in the country for its West Indies tour. He further talked about the opening of the Conarry Stadium, aiming to enhance sports sector, support athletes and host great events of the sports.
PM Drew shed light on the construction of the Kim Collins Athletic Stadium and said that the facility upgrades are also underway. The Basketball city is also its way, aiming to position St Kitts and Nevis on the global stage of the sports.
PM Terrance Drew outlined the progress made by the tourism sector in 2025 and said that St Kitts and Nevis welcomed 102,000 stayover visitors. He talked about the "venture deeper" initiative and said that around 778,000 visitors have been recorded between October 2024 and April 2025.
He said that the arrivals of the passengers generated around US$24.3 million in business activity and US$12 million in travel-related spending. PM Drew further shed light on the upcoming air line services that are expected to be launched and said that several cruise lines have already made inaugural calls to the country.
PM Drew credited to several events including St Kitts Music Festival, as key drivers of increased visitor arrivals and sustained international attention. He added that Restaurant Week and Sugar Mas have also made significant contributions to attracting tourists to the federation.
PM Terrance Drew outlined that they will be working for several priorities for education sector in 2026. It will include full operations of SIWIT, integration of smart classrooms, teaching certification via National Teaching Council and the commencement of a comprehensive education framework.
Each program will be monitored for measurable results with graduations rates, employment outcomes and sector alignment.
Talking about the education sector, PM Drew called it key pillar of the society and said that the government is working to empower the citizens. He said that there are three pillars to enhance the sector that are access, quality and employability to advance St Kitts and Nevis towards modern education sector.
PM Drew said that each pillar is support by strong governance, data systems, and institutional reforms. He said that the government aims to provide world-class education with the construction of Joshua Williams Primary School which is well underway.
When the new facility will reopen in 2026, it will stand as modern and inclusive space designed for use in 20th century which is Basseterre High School. The Federation has started and continuous build the first Climate Smart Secondary School.
It will feature laboratories, and digital classrooms, producing jobs and a learning space for the students. In terms of quality, the government is working to provide fully professionalized teaching to the students, aiming to provide quality in the sector.
Further, for employability, the government has taken steps to launch vocational and educational training in St Kitts and Nevis. In September, they work to form Christopher Willkan Institute of Technology.
PM Terrance Drew outlined that the elderly enrichment programme of St Kitts and Nevis, aiming to support elder people. He said that the programme is designed for those who retried and want to engage with other people.
PM Drew said that they are enjoying under the programme as the government has procured a bus for them to take them along in different communities and other fun activities.
Talking about the Public Works Department, PM Drew outlined the historic progress made by St Kitts and Nevis in different sector including infrastructure, housing and education. He said that the new machinery and crushers were acquired to ensure the availability of construction raw materials.
As per the prime minister, around EC$80 million was invested in roadworks across communities. ey developments included the St Peter’s Main Road and the F.T. Williams Highway, both of which were successfully completed by a local contractor.
A specific budget has also been allocated toward airport upgrades in Nevis, strengthening air transport infrastructure.
The Prime Minister highlighted several major capital investments, including EC$50 million for the construction of a desalination plant and continued funding for the Basseterre High School project.
He further noted that Fort Thomas required substantial restoration, with a new museum project planned to preserve the historic site, which had been facing the risk of structural collapse.
Additional updates pointed to ongoing development at Christophe Harbour and the construction of new homes across the federation, reflecting continued investment in national development.
Overall revenue reached EC$779.1 million, with recurrent revenue contributing EC$756 million and grants amounting to EC$23 million.
Tax revenue totalled EC$44 million, coming in 1.3 percent below budget estimates, largely due to the implementation of the VAT holiday. Collections from income, property, and international trade and transactions also underperformed relative to projections.
However, these shortfalls were partially offset by stronger-than-anticipated revenue from domestic goods and consumption, which exceeded both budget forecasts and the previous year’s collections.
PM Drew outlined the growth that has been recorded in crop production by noting that the agriculture sector could be as bigger as cruise industry in St Kitts and Nevis during the budget address of fiscal year 2026.
He outlined the crop production which is as follows:
Rose Yield: 54%
Watermelon production: 193%
Cucumber: 142%
Cantaloupe: 216%
Through national agriculture programme, the Ministry of Agriculture recorded sub planting of 60 thousand banana. In addition to that, 15,000 coconut trees were planted. He outlined that the farmers are expected to harvest over 1 million pounds of products in 2025 and the country is diversifying its agriculture sector with avocados, specialised pepper varieties for export.
SKN Mixed Nature Coping Project
PM Drew further shed light on the new programme named SKN Mixed Nature Coping Project which is 100 acres including hot peppers for export and also other products. The main aim is to meet the demand of the market and enhance the farmers.
It's a joint effort that we want between farmers and the government to meet the demand of the market. This nature farm can create 500 jobs as they 30 workers per 10 acres which is 300 workers for every 100 acres which is a significant number.
Talking about the livestock programme, PM Drew outlined that they process 40 pigs and over 32,000 pounds of beef. The government has taken steps to improve poultry hatch rates from 55% to 80%.
PM Terrance Drew laid down the investment made in the agriculture sector and noted that several training workshops have been hosted to promote local produce. The agro-processing unit has been renovated and equipped with calibrated machinery, advancing all zero waste mission.
He further outlined that over 20 greenhouses are being constructed in St Kitts and Nevis, out of which 6 are already completed and awaiting the roofing with work progressing steadily on the remainder.
Facilities are made to target youth and women farmers. In addition to that, 15 new cold storage containers have significantly expanded their capacity to preserve perishable produce.
Chicken Breeders Farm has been established in St Kitts and Nevis and the farm has hatched 200 chicks, cutting the reliance on imports and strengthening national food security. PM Drew called these investments as practical, productive, and a purposeful real investment that creates jobs, boost supply chains and put food on family tables.
In a budget address of 2026, Prime Minister Dr Terrance Drew outlined that the GAE workers in St Kitts and Nevis received gratuity and pension at the same time. It was denied, but we have provided them with their rights.
He further talked about the investments made in different sectors including the technology, communication and infrastructure.
PM Dr Terrance Drew announced that St Kitts and Nevis has surpassed the pre-covid arrivals and recorded great tourism season even before the ending of December 2025.
December is our peak, our best month and we are expecting to surpass those figures by thousands. This is real recovery as the first half recorded a growth of 13.8% in the tourist arrivals and reached 75,700 arrivals.
The country has surpassed pre-COVID levels which is a positive things and it should be highlighted properly, as per PM Drew. He said that this season will be the highest in the tourist arrivals in history of the country.
PM Drew outlined that the increase in airlift sector and other steps have positioned St Kitts and Nevis as a favourable destination of tourism. Due to this, the retail sector and the importing of the goods and services has also seen the growth.
PM Drew outlined that St Kitts and Nevis is expected to achieve the growth of 2% in the economy the despite the setback of 1% over the medium term. He said that the estimated growth is due to the contributions made by the key sectors including:
Manufacturing: 2.9%
Hotels and Restaurants: 2.6%
Construction: 2.5%
Wholesale and Retail: 2.3%
Financial Services: 1.6%
Additionally, moderate progress in transportation, communication and real estate and business activities have also been recorded and will continue to grow.
According to PM Terrance Drew, the unemployment rate of St Kitts and Nevis recorded below 5% which was outlined in the latest estimates. He said that the labour market is recovering as IMF also projected that the country would record 4% growth and this figures are progressing.
Talking about energy, PM Dr Terrance Drew outlined that they got the contractor for the construction of the geothermal power plant in Nevis. He said that this is significant aspect of the sustainable island state agenda, making St Kitts and Nevis a diversified economy.
He also talked about the food security and the dependence on the local produce, further shedding light on the renewable initiatives and the installation of the solar power plant. PM Drew added that they are working to enhance sustainable agenda, aiming to invest in people and progress.
Prime Minister Dr Terrance Drew lauded the "ASPIRE Programme" and said that it should be celebrated out and loud. The government has successfully approved thousands of applications through which students have bank accounts, aiming to support and empower the younger generation of the country.
ASPIRE Programme's financial aspect has been launched in six schools as the curriculum has been put together.
We will go across the primary and secondary school in both the islands to enhance the education sector.
During the budget address, PM Dr Drew lauded the strategic plans for the safety and security as the country recorded largest drop in homicide cases across the hemisphere. He said that the government has taken steps and people have engaged with them to deal with the crime as it was taken as a great threat to the public health.
PM Drew said that whole society has been involved to deal with the crime as people act with compassion and dedication. St Kitts and Nevis recorded lowest crime rate in over two decades and the people have seen the real impact of the safer communities.
"People have slept peacefully at their homes and it has taken into roots with a collaboration of people to create St Kitts and Nevis into a peaceful and secure destination," said the prime minister.
In a budget address for fiscal year 2026, Prime Minister Dr Terrance Drew presented appropriation bill in the national assembly in St Kitts and Nevis. The bill has passed in the parliament and become an act on December 16, 2025.
PM Drew talked about the challenges faced by his government when St Kitts and Nevis Labour Party when they came into the office. He said that his government has worked towards making the most resilient and sustainable economy of the country by taking tough decisions.
Talking about the CBI, he said that the government has taken bold and risky steps to establish the strong CBI industry. He said that the steps were taken to enhance the industry and make it a strong programme ever.
Further, he moved to the commissioning of new fleet of ambulances in St Kitts and Nevis in recent times. He said that the main aim is to enhance healthcare sector and improve the healthcare deliveries for the citizens of the country. Three are commissioned at JNF Hospital, one at Nevis Charles Hospital and one at other hospital in the country.