Grenada’s 2025 National Budget: A Path to Resilience and Inclusion
Economic Performance and Outlook
Finance Minister Dennis Cornwall presented the 2025 national budget to Parliament on Friday, highlighting the country’s growing resilience and favorable near-term outlook. Despite the devastating impact of a major hurricane, the country’s robust economic performance in 2024 underscores its growing resilience.
Budget Highlights
The budget, pegged at EC$1.91 billion, is fully financed, with an overall deficit of EC$337.4 million to be funded mainly from a drawdown of EC$287.3 million of government deposits held in the Consolidated Fund. The budget sets the country on a more resilient and inclusive path, consolidating past gains and accelerating progress.
Fiscal Package
The fiscal package includes measures to protect the most vulnerable, such as the extension of the Value-Added Tax (VAT) exemption on 20 basic food items and essential products, effective January 1, 2025. The government will also maintain the reduced petrol tax at EC$3.50 per gallon and the EC$10 monthly electricity subsidy for all residential consumers using up to 99 kWh per month.
Cost-of-Living Relief Measures
The government will introduce new cost-of-living relief measures, including a Public Transportation Subsidy to support bus operators and maintain affordability for commuters. The subsidy will be estimated at EC$12 million annually.
Public Service Regularisation
The regularisation of the public service is progressing steadily, with the first phase targeting 300 temporary officers, officers on probation, officers on assignment, and officers holding acting appointments. The second phase targets approximately 1,262 workers, with 1,100 officers to be regularised by April 2025. The third phase, targeting 3,316 workers for regularisation by December 2025, is on schedule.
Conclusions
The 2025 national budget represents a significant step towards a more resilient and inclusive Grenada. The government’s commitment to protecting the most vulnerable and balancing long-term fiscal sustainability is commendable. As the country continues to recover and rebuild post-Hurricane Beryl, this budget provides a strong foundation for future growth and development.
Frequently Asked Questions
Q: What is the total budget for 2025?
A: The total budget is pegged at EC$1.91 billion.
Q: What is the overall deficit for 2025?
A: The overall deficit is EC$337.4 million, to be funded mainly from a drawdown of EC$287.3 million of government deposits held in the Consolidated Fund.
Q: What are the key cost-of-living relief measures introduced by the government?
A: The government will introduce a Public Transportation Subsidy to support bus operators and maintain affordability for commuters, as well as maintain the reduced petrol tax at EC$3.50 per gallon and the EC$10 monthly electricity subsidy for all residential consumers using up to 99 kWh per month.
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