By Caribbean News Global 
CASTRIES, St Lucia, (CNG Business) – The Fifth Session of the Twelfth Parliament is scheduled for Tuesday, April 22, 2025. His Excellency, Sir Cyril Errol Melchiades Charles, the Governor General, will meet both Houses in joint session to receive a message. Members of the House of Assembly will meet separately at 10:00 a.m. and members of the senate will meet at 10:30 a.m.
Prime minister and minister for finance, Philip J. Pierre, is scheduled to deliver the budget address for the fiscal year 2025/26 at 5:00 pm, the government communication said.
“He will detail the plans for further growth and development as the government continue to put the well-being and interests of the people first.”
The proposed national budget totals XCD$2.057 billion, “ the largest financial allocation in the country’s history. This year’s budget will focus on infrastructure development, healthcare, citizen security, economic stabilization, social development, and job creation.”
Debate on the Appropriations Bill is scheduled for Thursday, April 24 and Friday, April 25, 2025, respectively.
The government of Saint Lucian has been advocating that the job market is booming! This is a subject matter that feasts apprehension.
“In 2024, unemployment dropped to a historic low of 10.8 percent nationally,” the office of the prime minister reported.” Last year, Saint Lucia recorded its lowest-ever fourth-quarter unemployment rate of 8.8 percent. It was the first time unemployment declined to single digits in over three decades,” adding: “when prime minister Pierre came to Office in July 2021, Saint Lucia was still reeling from its worst-ever economic decline – that year, unemployment averaged 21.9 percent.”
According to the OPM:
“Since then, the people-first policies of the Pierre administration have inspired one of the greatest economic resurgences in our nation’s history. These policies have cut down unemployment by over 11 percent, from 21.9 percent in 2021 to 10.8 percent in 2024.”
“The recovery began with the first budget of the Pierre administration in 2022/2023, demonstrating a consistent effort toward economic stability and prudent financial management,” the OPM advised.
Budget 2025/2026 special focus is directed at “health and social development, citizen safety, and job creation. A prudent mix of loans, grants, and bonds will be utilized to finance the anticipated deficit, indicating ongoing confidence in the country’s fiscal strategy,” the OPM listed:
- Total Revenue and Grants for fiscal year 2025-2026 are projected at $1.71 billion, representing an 8.7 percent increase over the previous year.
- Total expenditure of $2.058 billion is proposed, resulting in a primary surplus of 0.5 percent of GDP ($34.7 million), continuing the trend of the prior year. Consequently, an overall deficit of $202 million (or 2.7% of GDP) is projected, which remains within prudent fiscal limits of 3.0 percent of GDP.
- A primary surplus of $76.94 million is projected for the 2024/2025 financial year, with another anticipated for 2025/2026—a strong indicator of sound fiscal management and sustainable debt levels. This surplus means the government can cover its interest obligations without additional borrowing, reinforcing its commitment to responsible financial planning.
Notably, this marks the third consecutive year of primary surpluses, following years of significant deficits (i.e., -$327.32 million in 2020/2021 and -$204.73 million in 2021/2022). - This fiscal year, recurrent revenue of $1.62 billion is projected to adequately finance recurrent expenditure (operations) of $1.42 billion.
- Significant allocations in the budget include $1.6 billion for recurrent expenditures and $325.6 million for capital projects aimed at enhancing infrastructure and public services.
Prime minister Pierre has indicated that the largest share of the developmental portion of the budget will be allocated to the department of infrastructure, ports and roads.
“The net capital expenditure will be EC$325, 590, 089. This projected $325.6 million represents an 8.8 percent increase over the amount approved for the 2024/2025 estimates. Of the total allocation of $325.6 million for capital expenditure, EC$122.8 million or 27 percent is proposed for the departmentt of infrastructure, representing the largest share of the developmental budget,” the prime minister explained.
Projects to be financed this year which include the replacement of the Choc Bridge and various renewable-energy projects.
“The amount will be utilized as follows design finance construct payments, $52.4M; the Millennium Highway and West Coast Road Project, $25.5M; road maintennce and improvement, $8M; Choc Bridge construction, $8.2M; renewable energy sector projects, $4M; and other infrastructural projects including repairs to the government buildings and the desilting of rivers, $24.7M–totaling $122.8 million.”
Related: May 6: A chance to steer US–Caribbean relations through Trade Winds and other Passing Storms
CNG Insights
Following the approved 2025/2026 estimates of revenue and expenditure March 25, 2025, US president Donald Trump’s multiple tariffs on imports and global trade war is expected to have an impact on trade policy, procedures and budgets.
The costs of tariffs will inevitably increase the costs of production and strategic infrastructure development, make everyday consumer goods more expensive and end users; and in particular, the capital expenditure EC$325, 590, 089.
“Subject to reductions in implementation and scalebacks, it is not unforeseen that a supplementary budget is very likely if the trade war takes full effect,” commented a regional economist.
“To navigate today’s complex policy environment, with fast technological changes and growing demands for efficiency and effectiveness, governments need to ensure that regulatory frameworks are adaptive, efficient and proportionate to underlying policy objectives,” OECD secretary-general Mathias Cormann said. “By tackling unnecessary regulations, and ensuring regulatory frameworks are focused on better outcomes, governments can contribute to a supportive policy environment for stronger and more sustainable growth. This fourth edition of the Regulatory Policy Outlook provides evidence-based recommendations for developing best practice regulatory frameworks to achieve these objectives.”
Related: Tropical Shipping exempted from $1 Million port fee tariffs
Observers, businesses and entrepreneurs await prime minister Pierre to unveil a response and new policy on trade. Measures to explore new markets, domestic self-sufficiency, new trade partnerships, supply chains and global logistics and expand cooperation with CARICOM.
Without economic growth, there cannot be – “health and social development, citizen safety, and job creation,” to improve livelihoods and shape the future of Saint Lucia.
Real GDP growth will have to exceed 4.5 percent to normalise growth and unemployment, however, the economy is based on vague assumptions of visitor arrivals, (EC$3.5 billion in revenue last year) Citizenship by Investment (CBI) programmes, the benevolence of Taiwan and more recently, introduction of a Sovereign Wealth Fund, (SWF).
The post St Lucia’s Governor General speech from the throne and PM Pierre’s 2025/26 budget address – to navigate crises appeared first on Caribbean News Global.
