Grenada Government Records Decline in Revenue

Introduction to the Decline

ST. GEORGE’S, Grenada, CMC – The Grenada government recorded a decline of more than EC$90 million (One EC dollar=US$0.37 cents) in revenue for the first four months of this year as compared with the same period last year, according to figures published by the Ministry of Finance.

The ministry stated that for the period from January to April this year, the government’s revenue stood at EC$412.2 million, compared to EC$505 million for the same period last year.

Citizenship by Investment (CBI) Program

It stated that the most significant reduction was in revenue from the Citizenship by Investment (CBI) program, under which Grenada provides citizenship to foreign investors in return for making a substantial investment in the country’s socio-economic development.

According to the figures, in the first quarter of last year, the country earned EC$160.9 million in revenue from the CBI, compared with EC$69.4 million for this year, resulting in a shortfall of EC$91.5 million.

The Ministry of Finance had earlier projected that the government would earn EC$61.7 million for the same period this year, but the actual collection was EC$69.4 million.

Revenue Collections from Other Sources

According to the data, Customs and Excise collected EC$156.7 in revenue during the first four months, which is more than the EC$151.9 projected for the period, as well as surpassing the EC$149.2 million collected in 2024.

The Inland Revenue Department (IRD) collected EC$169.3 million, a slight decline for the same period in 2024 when the revenue earned was EC$171.7 million.

The ministry stated that the reduction was due to a decline in non-tax miscellaneous revenue. As of January 2023, the Ministry of Finance began reporting all CBI revenues as non-tax revenues. Previously, it was described as grants to the government.

Fiscal Report

“Current revenue collections fell short of projections, mainly due to a decline in non-tax miscellaneous revenues,” said the April 2025 Fiscal report, which explained that for April 2025, the primary and overall deficits were recorded at -$21.8 million and -$25.6 million, respectively, exceeding the monthly targets.

“However, for the January to April 2025 period, both the primary and overall deficits remained well within the established targets,” said the fiscal report, which is publicly available on the website of the Ministry of Finance.

Conclusion

The decline in revenue for the first four months of the year is a significant concern for the Grenada government. The reduction in revenue from the CBI program is a major contributor to this decline. However, the government is working to stay within its established targets, and the fiscal report is available for public review.