Opposition Leader Criticizes National Budget

Opposition Leader, Allen Chastanet and Prime Minister Phillip J Pierre

Introduction to the Budget Debate

CASTRIES, St. Lucia, CMC – Opposition Leader Allen Chastanet Wednesday criticized the EC$2.05 billion (One EC dollar=US$0.37 cents) national budget presented to Parliament by Prime Minister Phillip J Pierre, describing the fiscal package as a “manifesto.”

“The prime minister focused on his campaign promises rather than giving us a real account of his stewardship over the last four years and, in particular, over the last year,” Chastanet said on a radio program here.

Budget Details and Financing

The budget debate will begin on Thursday. Prime Minister Pierre, who has traveled to Antigua and Barbuda to attend the two-day Caribbean Investment Summit 2025 (CIS25), told legislators on Tuesday night that he was extending a tax amnesty program and allowing for improved allowances for nurses and public servants while insisting that his administration will remain focused as it prepares for a general election in the coming months.

“And so, Mr. Speaker, as we approach our date with destiny, we do so with the full assurance that individuals from every sector of the St. Lucian society can point to the direct benefits to their lives from the work that we have done,” Pierre said.

He said that the budget will be financed through Recurrent Revenue of EC$1.6 billion,

Capital Revenue of EC$6.68 million, grants totaling EC$93.3 million, Treasury Bills and Bonds estimated at EC$78.1 million, and loans and external funding of EC$257.3 million.

Criticisms and Concerns

Chastanet told radio listeners that tourism, the primary contributor to the local economy, has grown by less than one percent annually over the last five years, saying, “I think this is a very dismal performance (and yet) we heard nothing from the prime minister.

He said the industry could face some problems in the coming months as at least two major airlines have announced plans to leave St. Lucia.

“What’s the plan, what’s the strategy, how are we going to make up all those numbers? I’m not sure the prime minister grasped the magnitude of the problem in tourism,” he said, adding that the country was told “nothing” about plans to lure Canadian visitors to the island given the ongoing situation between Canada and the United States with Canadians now traveling less to the neighbor.

Chastanet said that the government had not been forthcoming about the performance of the Citizenship by Investment (CBI) program, through which foreign investors are granted island citizenship in return for significantly contributing to its socio-economic development.

“Not a word, no details at all,’ Chastanet said, noting that over the past years, the government has been touting about a 750 million dollar hotel project, and nothing was said about it during Pierre’s presentation.

He said there were also no details on the plans for agriculture, with revenue from the banana sector declining annually over the past six years.

“That’s money that would go into the rural communities supporting families; today, it’s three million dollars, 16 million dollars less of income that farmers and, in particular, families in the rural areas aren’t earning. Not a word from the prime minister on what will happen,” the Opposition Leader told radio listeners.

He said the government has borrowed $80 million to upgrade sporting venues on the island, compared to $33 million provided by Taiwan to construct several stadia, “and yet we cannot get any details as to what’s happening.”

He said that when the population is left to speculate, it allows for all types of misinformation, adding, “The government has a responsibility to manage the affairs of this country adequately and to account for it.

“That’s what the prime minister was supposed to have done yesterday, but he did not do it. Instead, he wants to go and promise people there will be a golden day ahead,” he said, warning the population, “There is no free lunch, particularly when it comes to a small island like St. Lucia.”

Chastanet said he hopes the government will, as it has done in the past, “close out the debate” without allowing him to contribute.

Conclusion

The opposition leader’s criticism of the national budget highlights the need for transparency and accountability in the government’s financial management. The lack of details on key sectors such as tourism, agriculture, and the CBI program raises concerns about the government’s ability to effectively manage the economy.

Frequently Asked Questions

Q: What is the total amount of the national budget?

A: The total amount of the national budget is EC$2.05 billion.

Q: How will the budget be financed?

A: The budget will be financed through Recurrent Revenue, Capital Revenue, grants, Treasury Bills and Bonds, and loans and external funding.

Q: What are the concerns about the tourism industry?

A: The tourism industry has grown by less than one percent annually over the last five years, and at least two major airlines have announced plans to leave St. Lucia.