St Kitts-Nevis projects EC$894.8M in revenue and grants for 2026

Prime Minister and Finance Minister Dr. Terrance Drew says his government is pressing ahead with long-discussed reforms to shore up Social Security, modernise the tax system and lay the groundwork for National Health Insurance, as St. Kitts and Nevis moves into the 2026 fiscal year under what he described as a disciplined and transparent framework.

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Drew said protecting Social Security is urgent, calling it the federation’s “most important and reliable social safety net,” and argued that preserving its financial health is a shared responsibility to keep it solvent for future generations. He told Parliament that “substantial groundwork” has already been completed on National Health Insurance, and framed the delivery of pension reform, universal health coverage and long-term Social Security sustainability as major milestones for national development.

On tax reform, Drew said a modern, efficient system is central to building a stable revenue base, reducing economic vulnerability and making the country more attractive for business. While reaffirming that there will be no increase in tax rates, he said the government will take a “targeted and determined approach” to clearing tax arrears, stressing that existing liabilities must be honoured.

Drew also pointed to what he described as a positive economic trajectory. He said St. Kitts and Nevis’ fiscal framework for 2026–2028 prioritises stronger public financial management, greater transparency, stronger institutions and improved public service delivery, alongside tax policy reforms supported by more effective enforcement and implementation.

For 2026, the government estimates total revenue and grants at EC$894.8 million, including current revenue of EC$855.7 million. Recurrent expenditure is projected at EC$879.8 million in 2026, while capital spending is forecast at EC$167.2 million.

Drew also highlighted measures aimed at household relief and income support. He said the government invested more than EC$36 million through initiatives, including the Budget Boost Wallet programme—support he said reached 20,000 people for six months—alongside VAT-related relief. Separately, he announced that public-sector workers, Government Auxiliary Employees (GAEs), pensioners and STEP workers will receive an additional payment equivalent to one month’s salary, with payment scheduled for Friday, Dec. 19, 2025, while ministers, advisers and certain other officials are excluded.