Prime Minister and Minister for Finance Philip J. Pierre ended Tuesday’s Budget presentation by restating his government’s commitment to improving people’s lives through its policies.
“It is the intention of my Government to maintain a society where good sense, empathy and constructive criticisms, and dialogue prevail,” he said.
The presentation was titled Consolidating Our Gains, Prospering in Uncertain Times.
The Prime Minister addressed the declining birth rate, describing it as “a quiet but consequential shift”. He attributed delays or reconsideration of parenthood among young people to rising costs, economic uncertainty, and changing work patterns.
“The cost of housing, child care, health care and other necessities has altered the calculus of family life,” he said. “We must confront the reality with deliberate and forward-looking policies as a declining birthrate has implications for the labour force, productivity and the sustainability of social and economic systems.”
Pierre said the Government will promote responsible discussion to inform a comprehensive policy addressing this issue.
Earlier, he announced that, effective August 1, 2026, all mothers of registered newborns will receive a one-time grant of $1,000.
According to the Prime Minister, “Preparations of the 2026 policy statement have been the most challenging since independence.”
He emphasised that this will not deter the Government’s commitment to meeting the aspirations of Saint Lucians.
The proposed budget totals EC$2.189 billion and will be financed through loans and external sources. These include Taiwan ($160 million), Caribbean Development Bank ($30 million), European Investment Bank ($6 million), CARICOM Development Fund ($2 million), Canadian Clean Energy & Forest Climate Facility Fund ($0.4 million), CDB ($2 million), International Development Agency ($75 million), World Bank ($2 million), Kuwait Fund ($4 million), Saudi Arabia ($16 million) and African Export-Import Bank ($2 million), totaling $303 million.
Pierre said that Parliament had already approved the loans of$160 million from Taiwan and EC$75 million from the International Development Agency.
Additionally, the budget will be supported by recurrent revenue ($1.7 million), capital revenue ($4 million), grants ($81 million) and Treasury Bills ($49 million).
The government will fund initiatives in environmental sustainability and climate resilience, labour and social security, infrastructure, national development, digital transformation, public sector reform, education and human capital development, and social protection and family support.
It will allocate $11 million to modernise and transform the justice system and will implement the e-litigation platform this financial year.
Pierre confirmed there will be no new taxes. He also announced an extension of the tax amnesty to December 1, 2027, and a five-month extension for the corporate tax filing deadline.
Although hotel room numbers declined in 2025, the Prime Minister highlighted growth in the shared accommodation sector, such as Airbnb, which generated $116 million in 2025.
Planned projects for this year include refurbishing the Parliament building, the Hewanorra Redevelopment Project, the Canaries Jetty, the Choc Bridge, the Castries to Gros Islet four-lane highway from the Monchy junction, the Vieux Fort Administration complex and amphitheatre, and the Castries East and North Human Resource Development Centre.
After the Prime Minister’s three-hour presentation, Leader of Government Business Dr Ernest Hilaire moved to suspend the House until Thursday at 9 am, when MPs will debate the Budget statement.
