St Kitts and Nevis allocates $320M to subsidies, social programmes: PM Terrance Drew

St Kitts and Nevis: A total of $320 million budget is allocated to mitigate the impact of the rising inflation on the citizens and support the social programmes in St Kitts and Nevis. The budget is divided into different categories to support households, increase disposable income, provide significant subsidies and increase minimum wage and salaries for civil servants. 

Speaking during the roundtable interview, Prime Minister Dr Terrance Drew said that steps have been taken to fight the growing global inflation. He said that they have taken forward policies to reduce burden on the people of St Kitts and Nevis and provide relief in their essential households.

Budget Boost Wallet

As part of the social programmes, the government announced the “Budget Boost Wallet” initiative to empower individuals with low to middle-income. Under the steps, individuals with their earnings $5,000 or less per month will be given $250 per month for the first sixth months of 2025. 

It is started with an intent to bear the expenses of their households and other necessities that are essential in day-to-day life. The middle- and low-income households will be empowered so that they can spend their earnings on productive works for their children. 

VAT reduced

Prime Minister Dr Terrance Drew also announced the reduction in the Value Added Tax (VAT) relief holiday, aiming to provide assistance to the common citizens. The VAT has been reduced from 17 to 13 percent for the first six months of 2025 with an intent to empower the local businesses and the consumers across St Kitts and Nevis. 

The “Build and Thrive” incentive has been extended to December 31, 2025 under which, no import duty, no customer service charge will be imposed on the renovations and repairs up to EC$500,000. 

The VAT has also been reduced to 13 percent for these repairs and renovations in the country. 

Hike in Minimum Wage

The Minimum Wage for the workers have been increased to $500 per week, aiming to meet their basic and daily needs in St Kitts and Nevis. The increment will come into effect on July 1, 2025.The government of St Kitts and Nevis also announced 8% salary hike for the civil servants and the pensioners. 

In addition to that, the LIFT Programme and ELEVATE has also been announced for the citizens to offer subsidies for electricity, water and other essential things. The initiatives are considered a part of the strategy of the government to promote equity, resilience and economic growth in St Kitts and Nevis.