2025 BUDGET STATEMENT- “Creating a Resilient, Harmonious and Prosperous Nation”

2025 BUDGET STATEMENT

“Creating a Resilient, Harmonious and Prosperous Nation”

Honourable Gaston A. Browne

 Prime Minister and Minister for Finance, Corporate Governance and Public Private Partnerships

Government of Antigua and Barbuda

Thursday 5^th December 2024

                                    PODIUM COPY

Introduction

Mr. Speaker:

I rise to present the National Budget for 2025 under the theme: “Creating a Resilient, Harmonious, and Prosperous Nation.”

I am pleased to announce that our nation will achieve remarkable real GDP growth of at least 6 per cent in 2024, surpassing the International Monetary Fund’s (IMF) global growth projection of 3.2 per cent. 

This performance outstrips major economies such as the United States, the Euro area, and the United Kingdom. 

Over the past three years, from 2021 to 2023, we have maintained an impressive average annual growth rate of 7.4 per cent. 

In our region, only Guyana, with its burgeoning oil and gas sector, has exceeded our growth rate.

This achievement is a testament to the effective management of our economy and the resilience of our people. 

Despite our small size and the challenges we face, including the existential climate emergency and limited access to concessional financing from global financial institutions; we have not only rebounded, but bounced forward from the devastatingly sharp 19 per cent economic contraction in 2020, caused by the COVID-19 pandemic. 

The IMF has projected robust economic performance for us, anticipating real GDP growth of 5.8 per cent in 2024 and 3.5 per cent in 2025. 

We have surpassed the 2024 projection and are confident that, with the continued support and contribution of every working person in our country, we will exceed the 3.5 per cent growth forecast for 2025.

These figures are not mere statistics; they reflect the unwavering spirit of our people and the soundness of our economic strategies and policies. 

They indicate that your ABLP administration is on a steadfast path toward building a resilient, harmonious, and prosperous nation. 

Indeed, we are poised for even greater accomplishments in 2025, as I will outline in this Budget Statement.

Mr. Speaker,

Our nation stands at a pivotal juncture, one defined by both challenges and opportunities.

The global economic landscape remains uncertain; the effects of climate change are increasingly profound; and inequality continues to demand our urgent attention. 

Yet, we are armed with an indomitable spirit and a clear roadmap to shape a future that safeguards our people, uplifts our communities, and sustains our environment.

My Government is prepared to provide the roadmap for our continued progress, as we have done now for ten years. 

But every person is encouraged to contribute – leveraging their time, talent and resources to propel our nation forward. 

When every citizen and resident unite with relentless determination; we will create a resilient, harmonious, highly performing and thriving nation – not just for 2025, but for generations to come!

Mr. Speaker,

This year’s budget is anchored on four transformative pillars that align with our development strategy:

• Strengthening Macroeconomic Resilience, Expanding Economic Growth, and Creating Employment Opportunities

• Enhancing Social and Gender Inclusion While Reducing Poverty and Vulnerability

• Improving Productivity through Increased Access to Quality Education, Affordable Healthcare, and Housing 

• Adapting to Climate Change, Managing Disaster Risk, and Promoting Environmental Sustainability

Mr. Speaker:

We have made significant strides under each of these pillars, but there is more to be done.

In the coming year, we will continue our dedication to advancing Antigua and Barbuda and advocate unrelentingly for all who call this nation home. 

As the adage goes, “The reward for good work is more work.” 

And more good work, we shall do!

Domestic Performance – Towards a Resilient, Harmonious, and Prosperous Nation’

Mr. Speaker:

For 2024, we foresee vibrant and sustained growth across all major sectors of our economy – wholesale and retail trade, construction, public administration, and, most prominently, tourism.

As of October 2024, stay-over visitor arrivals have surged by an impressive 17%, a remarkable achievement born of strategic vision and bold, decisive actions. 

It is these courageous interventions that define our government’s leadership: solutions marked by creativity and foresight for the benefit of our nation.

A shining example of this leadership was our successful hosting of the United Nations Small Island Developing States Conference in May of this year. 

By boldly stepping onto the world stage, we not only showcased Antigua and Barbuda’s capabilities, but also demonstrated that small nations can lead with vision and determination. 

Few would have dared to take such a step – but we did, and we succeeded with distinction. 

Antiguans and Barbudans have every reason to hold our heads high; proud of what we have achieved together.

Similarly, hosting the T20 Cricket World Cup matches injected renewed energy into our economy, stimulating activity across various sectors and demonstrating once again the vitality of our nation.

We have also transformed our connectivity to the world. 

The introduction of new airlines and the expansion of flights from carriers such as Condor, Sunrise Airways, Winair, LIAT 2020, JetBlue, and Frontier Airlines have strengthened our air transport network, creating greater opportunities for tourism.

This increased accessibility fuels the success of businesses: from restaurants and bars to catering services, tour and taxi operators, among others.  

Construction Industry

Mr. Speaker

The construction industry continues to play a crucial role in our economy, contributing a record $900 million to the national economy in 2024. 

This performance was propelled by work on major private sector projects such as construction of Airbnb properties and the international franchise restaurant, The Hut, on Little Jumby Bay. 

In addition, several hotel properties were renovated including the Hermitage Bay Resort, Carlisle Bay Resort, and the Royalton Chic Hotel was completed.

The ongoing PLH project on Barbuda continues to play a pivotal role in this sector, creating employment and business opportunities for thousands of our citizens and residents.

Additionally, data from the Development Control Authority for the period January to October 2024 signal an increase in residential and commercial property construction and renovations. 

For instance, there was a 14 per cent increase in applications for residential and commercial construction valued at $464 million.

This means that not only will the State gain more revenues from property taxes to finance further development; it also means that the physical appearance and the wealth of our nation are greatly enhanced.

Mr. Speaker, that is also an indication of the confidence our people, and the business community, have in our economy, and we shall continue to work hard to ensure that everyone benefits from this thriving economy in which we live.

In short, Mr. Speaker, in the words of one of our slogans from a few years ago – “Ain’t no stopping us now; we’re on the move!” 

There is no denying that our country is securely on the path to becoming an economic powerhouse.

Employment

Mr. Speaker,

Antigua and Barbuda’s robust post-pandemic recovery continues to create positive momentum in employment and economic stability. 

What has happened with employment is especially significant.

Based on data from the Antigua Barbuda Social Security Board, the total number of active jobs is expected to increase from 47,996 in 2023 to 49,915 in 2024, with those workers earning $1.8 billion.

That’s approximately 2,000 additional jobs in a single fiscal year.

We anticipate a further 2,000 jobs will be created in 2025, due to the strong demand for tourism and the construction of several luxury properties.

This is further cause to rejoice over all that has been achieved; especially when we recall the astronomically high level of unemployment and elevated rates of poverty in 2014, when our government took office.

The remarkable employment growth highlights the dynamism and resilience of our job market and translates to increased income for Social Security to deliver on its social mandate. 

For the first half of 2024, collections exceeded benefit expenses by $22 million, and with the continued buoyancy in the economy, the institution anticipates inflows of $227 million in 2024 compared to $214 million in 2023.  

That is nothing but good news – news that we should all welcome and applaud.  

We are now in discussions with the Social Security Management and Board to invest some of its surplus cash in a new hotel to be constructed on 10 acres of greenfield space at the Jolly Beach Hotel site. 

Further good news, Mr. Speaker, is that, given its strengthened financial position, the Social Security minimum pension will be increased next year from $350.00 to $500.00, emphasizing our government’s commitment to improving the quality of life for all pensioners. 

This follows on the heels of the increase in the government’s minimum pension to $1,000 monthly. 

These figures underscore the success of our economic policies and our ability to promote growth and generate employment.

Every citizen of Antigua and Barbuda has access to opportunities that improve their quality of life and empower them to contribute to our nation’s prosperity. 

Financial Sector Developments 

Mr. Speaker,

Recent data from the Eastern Caribbean Central Bank (ECCB) highlights significant improvements in Antigua and Barbuda’s financial resilience and strong economic performance over the past year. 

These achievements underscore the soundness of our government’s policies and the confidence they inspire. 

Let me break this down:

Money Supply Growth

The money supply (M1), which includes cash and bank deposits, increased by $200 million (13%) from $1.4 billion in August 2023 to $1.6 billion in August 2024.

Private Sector Deposits

Deposits rose by 5 per cent, from $2.1 billion to $2.3 billion, including a $34 million increase in household savings – a clear sign of recovering employment levels and stronger household finances.

Increased Credit

Credit to households grew by 6% ($72 million), while loans to businesses surged by 21% ($173 million), supporting entrepreneurial growth and consumer spending.

Commercial Banks’ Asset Base

The total assets of commercial banks expanded by nearly $500 million, reaching $6.5 billion by August 2024. This was driven by $280 million in new investments and $327 million in loans and advances.

Mr. Speaker, these developments reflect not only a growing and resilient financial system, but also the greater benefits of sound government policies. 

Credit Unions

Mr. Speaker:

Data as of September 2024 point to continued growth in Credit Union operations with a $24 million increase in total assets from $625 million in 2023 to $649 million. 

Deposits in credit unions amounted to $547 million and were $42 million higher compared to total deposits at the end of 2023. 

Lending also grew by $19 million to $477 million.

Almost 60% of this credit was allocated to mortgages thus enabling citizens and residents to achieve the important milestone of homeownership. 

I cannot stress this enough, Mr. Speaker – by its policies, our government, the people’s government, is helping the people of our country to own a piece of the rock and a home.

We continue to empower our people by creating conditions that allow them to secure home mortgages.  

Additionally, private vehicle ownership increased from 32,000 in 2013 to 45,000 in 2023; a whopping 41 per cent increase. Business ownership also increased as well.

Inflation

Mr. Speaker:

Though there are signs of slowing inflation, it remains a challenge for us here in Antigua and Barbuda, as it does for other import-dependent countries. 

The September 2024 publication of the Consumer Price Index (CPI) reveals an inflation rate of 5.6%, which is the same as in September 2023 and below the rate of 8.6% in September 2022.  

Since Antigua and Barbuda imports almost all of the products consumed by its population, it is expected that any price hikes globally will affect the domestic economy.  

However, the Government continues to pursue policies to help ease the burden of inflation and lessen the impact on households. 

In ongoing efforts to address the affordability of essential items, particularly food, there was an amendment to the Price Control Order, which limits price increases for specified essential food and non-food items.

Subsidies

Mr. Speaker:

Our government, the people’s government, continues to provide crucial support to bus and taxi operators through its Fuel Voucher Subsidy Programme.  

For the first nine months of this year the government provided fuel support to 197 bus operators and 733 taxi operators amounting to over 704,000 gallons of fuel at a cost of $2 million. 

With the economy fully recovered and persons who were without an income during the pandemic having returned to gainful employment, it is time to revisit this programme and deliver more targeted support where needed.

Since 2021, the Government has spent nearly $9 million on fuel subsidies for both bus and taxi operators and $2 million on fuel subsidies to fisherfolk.

Additionally, the Government continues to provide food vouchers through the Government Assistance Programme to assist the vulnerable segments of the population that require financial support. 

As of September 2024, the Government has spent $17.2 million on this programme.

Mr. Speaker, to minimize the impact of volatile international fuel prices on the domestic economy, the Government decided to manage the pass-through mechanism to maintain price stability.  

As a result, at $14.50, the price per gallon of gasoline in Antigua and Barbuda remains below the ECCU average of $15.37. 

Also, at $14.25, the price for diesel is below the ECCU average of $14.95. 

Further, at $32 for the 20-pound bottle and $155 for the 100-pound cylinder, LPG prices are well below the ECCU average of $38.44 and $193.99 respectively. 

This is achieved though the Government’s provision of subsidies amounting to $5.16 per 20-pound bottle and $17.64 per 100-pound cylinder. 

These subsidies are valued at nearly $12 million for the period January 2022 to October 2024.

Let us, therefore, be clear, Mr. Speaker, concerning those who glibly state that the cost-of-living is high, and the Government is doing nothing about it: they are either ignorant of the facts or they are being deliberately and deceptively malicious.

As I have detailed here – much of our increase in the cost of living comes from the goods we import from countries with high inflation rates, but even so, our government has acted to provide subsidies to ease the burden on all.

Such, Mr. Speaker, is the caring and concerned nature of our administration. 

Fiscal Performance 2024

Mr. Speaker:

In 2024, our Government focused on enhancing fiscal responsibility with the objective of ensuring long-term macroeconomic stability and debt sustainability.  

This required pursuing challenging but necessary reforms, including implementing tax and expenditure measures to improve revenue and expenditure performance. 

These interventions have started to yield positive outcomes as indicated by the preliminary estimates for the end of 2024.  

Some noteworthy outcomes are as follows:

1. We anticipate a significant improvement in the overall fiscal balance, transitioning from a deficit of $91.9 million in 2023 to a projected surplus of $86.4 million in 2024. This is a remarkable $178 million turnaround.

• A primary surplus of $218.4 million or 3.5% of GDP is forecast for 2024, up from $25 million or 0.5% of GDP in 2023.

• Total revenue and grants are set to increase by $390 million to $1.32 billion in 2024. This outcome will be driven primarily by tax revenue, which will amount to $987.2 million – a 22% improvement over the previous year.

Mr. Speaker, let me highlight the performance of a few of the key revenue sources:

1. Import Duties: increased by 14% to $128.8 million

• Revenue Recovery Charge: generated $106.8 million – 8% above 2023 collections.

• Corporation tax yielded $116.2 million and is evidence of a booming economy.

• Antigua and Barbuda Sales Tax (ABST) is expected to generate $412.2 million in revenue which is 25% more than the amount collected in 2023.

While we celebrate these revenue milestones, we still face unacceptable levels of non-compliance, especially regarding ABST.

ABST revenue is held in trust and all taxpayers are required to remit these revenues to the Consolidated Fund as stipulated in law.

Those who continue to manipulate ABST payments will be vigorously pursued and subjected to the applicable legal penalties.

Non-Tax Revenues

Non-Tax Revenue is expected to reach $319.1 million in 2024. 

This is a 167% increase, which is primarily driven by $103 million in forfeiture funds received from the sale of the Alfa Nero Superyacht. 

The 30% growth in CIP receipts to $80.4 million also contributed to the surge in non-tax revenue.

Mr. Speaker:

Total expenditure is projected at $1.2 billion, a 21% increase from 2023, with wages and salaries constituting 38% of public sector spending.

The $467.3 million spent on wages and salaries in 2024 includes the 9% salary increase for public sector employees.

Spending on pensions and transfers also expanded and is projected to reach $362.4 million, a 40% increase over last year.

This amount includes approximately $40 million in payments to ensure LIAT could resume operations in the region.

Additionally, in August 2024, a 7% pension increase was granted to pensioners and the minimum pension was raised from $800 to $1,000 monthly.  This benefitted over 3,000 retired public servants.

Mr. Speaker:

Honourable Members will recall that the pandemic exacerbated our country’s fiscal position with substantial deficits recorded between 2020 and 2022.  

Over that three-year period, the fiscal deficit averaged 4.8 per cent of GDP but, with strong economic recovery, this was reduced to 1.7 per cent of GDP by 2023.  

Given the cumulative deficit of more than $700 million recorded over the last four years, our Government embarked on a path to securing fiscal sustainability, which is a necessary foundation for economic growth and resilience.  

The fiscal outcome expected for 2024 is the direct result of a series of revenue and expenditure reforms, initiated at the beginning of the fiscal cycle.  

These interventions allowed the Government to implement increases for public servants and pensioners and have facilitated more timely payment of pensions, wages and salaries. 

Further, the fiscal surpluses recorded in 2024 mean the Government was able to start addressing the sizable fiscal gap that is a threat to macroeconomic stability.  

In practical terms, this has allowed the Government to begin meaningful implementation of its arrears clearance strategy. 

Through a combination of tax liability set-offs, cheque exchanges and cash payments, about $50 million was paid to clear arrears to contractors and merchants.  

Additionally, $4 million was paid to reduce the backlog of gratuity payments due to public servants who retired prior to 2024, while $4.7 million was paid to settle arrears of salaries for teachers who were eligible for upgrades since 2019.  

Paying Retired Public Servants

Mr. Speaker

The Treasury is making every effort to clear the backlog of gratuities owed to retired public servants, but has challenges contacting some individuals who retired in 2018 and 2019. 

Anyone who retired in 2018 or 2019 and did not receive their gratuity can contact the Treasury Department to receive payment.  

A systematic approach is being used to ensure all amounts due are cleared once resources are available. 

Public Sector Debt         

Mr. Speaker:

At the end of 2023, the debt-to-GDP ratio stood at 75.3 per cent. 

Due to substantial expansion in GDP and debt service payments that reduced the stock of debt, the debt-to-GDP ratio is expected to decrease to 62.3 per cent at the end of 2024, placing Antigua and Barbuda on the cusp of the ECCU target of 60 per cent well before 2035. 

This is an enviable position, and we must pause to acknowledge our progress, especially since, when this government came to office in 2014, the debt-to-GDP ratio was 100.2 per cent, according to data published by the ECCB. 

There were a number of un-booked liabilities, including Half Moon Bay & APC judgement debts, among others that would have taken the debt to GDP in 2014 above 110 per cent.  

The public debt stock was $4.1 billion in 2023 and is projected to amount to $3.9 billion at the end of this year. 

Whereas significant progress has been made to reduce the debt to GDP ratio to 62 per cent, debt service remains challengingly high. 

The Ministry of Finance will embark on additional strategies to further reduce the debt service ratio and create fiscal space to fund inclusive socio-economic development.

In 2025, $38 million is expected to be disbursed for ongoing projects facilitated by the Caribbean Development Bank (CDB) and government securities will finance approximately $377 million of public sector obligations.   

Finally, we will continue to explore innovative opportunities for managing debt liabilities, including pursuing liability management operations such as debt swaps and debt buy backs.

Strengthening Macroeconomic Resilience, Expanding Economic Growth, and Creating Employment Opportunities

Mr. Speaker:

Our nation’s journey toward resilience, harmony, and prosperity is being driven by a focused strategy to strengthen our economy, expand growth, and create meaningful employment opportunities for our people. 

Central to this effort is the continued growth and transformation of our tourism sector, which has proven to be a pillar of our economic success.

Tourism Sector Performance

As indicated earlier, stay-over arrivals grew by 17% as of October 2024, compared to the same period in 2023. 

This reflects not only the widening appeal of Antigua and Barbuda but also the strength of our key source markets. 

Arrivals from the United States increased by 29%, while Canada rose by 11%, and Europe surged by a remarkable 72%. 

These figures give us confidence that we will exceed the record of 300,000 stay-over visitors achieved in 2019.

Such growth does not happen by chance – it is the result of strategic planning, targeted marketing, and the dedication of all stakeholders in the tourism industry. 

And, Mr. Speaker, this growth is not just numbers on a chart. It is the lifeblood of our economy, directly supporting jobs, boosting small businesses, and generating valuable foreign exchange.

Cruise Arrivals

Our cruise arrivals also tell a story of remarkable progress. 

Between January and October 2024, we welcomed 570,339 passengers – a 32% increase over the same period in 2023. 

Importantly, this growth is no longer confined to the traditional peak season. 

Our destination is now attracting year-round interest, which is a testament to the quality of our tourism product and the hard work of those in the industry.

The benefits of a thriving tourism sector ripples through every segment – tour operators, transportation services, retailers, and countless others are reaping rewards.

Tourism Projects

Mr. Speaker, tourism’s success is built not just on what we have achieved but also on what we are building for the future.

In 2024, we celebrated milestones like the opening of the Barbuda International Airport and the launch of the Royalton Chic Hotel, which created over 500 new jobs. 

Transformative projects like the One & Only at Half-moon Bay, the Rosewood Barbuda, the Nikki Beach Resort and Spa, and the Marriott at Yeptons will begin construction in 2025.  

Over the next 36 months more than $1 billion will be spent on these and other projects, thereby generating thousands of jobs and creating substantial opportunities for businesses throughout Antigua and Barbuda.

Barbuda, in particular, has become a beacon of progress and land of opportunity. 

With over $1.5 billion invested in the PLH Development, and over $57 million invested on the Paradise Found Resort to date; Barbuda is emerging as a key driver of our national prosperity. 

In 2025, a further $300 million will be spent by PLH, with total investment amounting to $5 billion at its completion. 

Also, $84 million will be spent on the Paradise Found project next year.

Later in the year, we expect the Barbuda Silver Sands Resort to commence preparatory works.   

These projects are creating income, employment, and opportunities for countless families, ensuring that Barbuda plays a central role in our nation’s future.

Empowering Citizens Through Local Tourism Development

Mr. Speaker, as we welcome foreign investment, we are also ensuring that our citizens share in the benefits of tourism, through bold initiatives to encourage domestic ownership.

Projects at Pensioners Beach, Morris Bay, Willoughby Bay, and Shell Beach offer Antiguans and Barbudans the opportunity to invest in prime coastal areas, establishing ventures such as Airbnb’s, condominiums, and residential properties.

We will also establish a golf course on the Northwestern coast of Barbuda and will make lots available to Barbudans to construct Air BnB properties, so that they too can participate in this lucrative sector.  

Mr. Speaker, our vision for a resilient, harmonious, and prosperous Antigua and Barbuda, is being realized through these strategic investments and achievements. 

As I said before, our aspiration for an economic powerhouse is taking root.

But this journey is far from over. 

Together, with the dedication of our people and the strength of our policies, we will continue to transform our economy, create opportunities for all, and ensure that every citizen and resident can share in the prosperity of our nation. 

Establishing Antigua and Barbuda as a Conference Hub

The successful hosting of the 4th International Conference on Small Island Developing States (SIDS) in May 2024, positioned Antigua and Barbuda as a premier destination for international events. 

The conference drew over 3,000 participants, including 22 Heads of State, and delivered the landmark outcome – the Antigua and Barbuda Agenda for SIDS (ABAS). 

We launched the SIDS Centre of Excellence, which will serve as a vital hub for research, collaboration, and capacity building and ensure that targets are met, and challenges addressed with precision and purpose.

The SIDS Conference significantly boosted tourism during a typically slow period, benefiting hotels, businesses, and service providers, while elevating our country’s global profile.  SIDS was good for Antigua and Barbuda.

Building on this momentum, Antigua and Barbuda has been selected to host several other major conferences. 

These include:

The 43rd Annual Caribbean Travel Marketplace in May 2025, for the first time in the Eastern Caribbean. 

This event will bring leading hospitality players for buyer-seller appointments and networking.

The 55th General Assembly of the Organization of American States in June 2025:

This prestigious event, which will attract participation of Foreign Ministers from more than 40 countries, bringing an expected 2,000 participants, filling hotels and continuing employment.

The Commonwealth Heads of Government Meeting in 2026: This biennial summit of 56 leaders of Commonwealth nations, will be the largest conference Antigua and Barbuda has ever hosted. 

There will be close to 6,000 delegates at the Meeting and its side events.  

Every hotel will be full, and our service industry suppliers will be fully engaged. 

The media coverage for each of these events will give Antigua and Barbuda and its attractions considerable exposure all over the world.

Clearly, Antigua and Barbuda is respected globally and is fast emerging as a diplomatic centre in the Caribbean.

Agriculture

Mr. Speaker,

Agriculture is projected to grow by at least 7 per cent in 2024 and, in nominal terms, contribute $116 million to GDP. This is an increase in aggregate dollar and percentage terms.  

Though its contribution to national output is small relative to other sectors, agriculture remains a cornerstone of our efforts to build a sustainable, resilient, and self-reliant nation. 

Despite the challenges faced in 2024, we are making notable strides toward transforming the sector into one that ensures food security, creates economic opportunities, and adapts to the impacts of climate change. 

Specifically, crop production increased 16 per cent while livestock production expanded by 3 per cent.

Mr. Speaker, looking ahead to 2025, we will invest substantial resources to enhance the agricultural sector’s capacity.

We recognise agriculture’s success also hinges on collaboration and consumer support.  

Therefore, early in the new year, our government will host an agricultural symposium that will bring farmers, distributors and investors together to catalyze more investments in the sector.  

In addition, our lucrative concessions to farmers, technical support and subsidies will be scaled up in 2025, to increase domestic food production and to reduce the expanding import bill.  

The Central Marketing Corporation will be mandated to play a vital role in connecting local demand for fresh, healthy produce and meats to the harvest supplied by our farmers. 

In 2025, CMC will expand its “Buy Local” initiative, providing a platform to promote and distribute locally produced goods. 

Where these produce and meats are available locally, the import taxes and duties on these products will apply to CMC imports.   

This effort will boost local businesses, enhance economic output, and reduce our reliance on imports.

The Prime Minister’s Entrepreneurial Development Programme (EDP)

Mr. Speaker

The Prime Minister’s Entrepreneurial Development Programme (EDP) is a key element of our strategy to encourage and tangibly support micro and small business development in Antigua and Barbuda. 

Now in its fifth year, the programme has benefitted many local business owners operating in diverse sectors such as agriculture, technology, tourism, and the blue and orange economies. 

The EDP offers low-interest loans between 1 to 3 per cent and business support services such as coaching and bookkeeping. 

The programme has disbursed over $6 million in loans since its 2019 inception. 

This is a truly impactful venture which has delivered financial support to 137 entrepreneurs and trained more than 750 enterprising individuals.

In anticipation of increased demand for resources from this programme, an additional $5 million will be allocated to the EDP, bringing the total financing envelope available to micro and small businesses to $10 million in 2025.  

Mr. Speaker, the grant component of the EDP will be scaled up to $10,000 for each approved applicant who presents a viable business plan for investment in the productive sectors of our economy.  

Investment in Air Transportation – LIAT 2020 

Our Government entered into a 30/70 joint venture partnership with Air Peace Caribbean Limited to form LIAT 2020 Limited. 

Demonstrating our commitment to regional air connectivity and creating an enabling environment for economic growth and development; we invested over $33 million to acquire 3 aircraft, which were part of the LIAT 1974 Limited fleet, from the Caribbean Development Bank. 

The airline currently serves 8 Caribbean territories: St. Lucia; Barbados; Dominica, St. Kitts, St. Vincent, Guyana and Grenada, and its home – Antigua. 

New routes will be added in the short term, including flights to the northern Caribbean starting with Tortola.  

Mr. Speaker:

Our government is determined to address the concerns of former LIAT 1974 Ltd. workers, especially the more than 400 employees who were stationed in Antigua. 

As a demonstration of this commitment, the Government will make good on its promise to cover its share of the severance owed to these workers, based on Antigua and Barbuda’s 32 % shareholding, in LIAT 1974 Ltd.  

We will issue a bond for the $16.7 million which represents 32 per cent of the severance liability to the 400 hundred employees.  

This will be a ten-year instrument on which payments will begin this month and continue annually, until the $16.7 million principal plus interest is fully extinguished.

Our intervention will provide much-needed relief and demonstrates our dedication to fairness and justice, representing meaningful action on behalf of the affected workers.

West Indies Oil Company (WIOC)

The West Indies Oil Company (WIOC) has shown robust financial performance with remittances totaling $148.2 million since the Government acquired the company in 2015.

These include $74.3 million in corporate income tax, $56.5 million in dividends, and $17.4 million from the divestment of a portion of shares in 2021.

Since listing on the Eastern Caribbean Securities Exchange (ECSE) in June 2022, WIOC holds the third highest market capitalization ($348 million) and ranks fourth in shareholder equity ($274 million).

The Company’s ongoing capital and operational enhancements, underscore its commitment to innovation and sustainability, contributing to economic growth, and creating value for shareholders.

 Commercial Banks and State Insurance

Mr. Speaker:

Our government takes immense pride in its prudent management and strategic foresight, exemplified by our ownership stakes in two of the region’s strongest and most profitable banks; Eastern Caribbean Amalgamated Bank (ECAB) and Caribbean Union Bank (CUB).

These institutions stand as pillars of financial stability and growth, not just for Antigua and Barbuda but for the sub-region at large.

Through timely intervention and sound policy, we have successfully positioned ECAB and CUB on solid financial footing.  

ECAB generated average annual profits of $14 million between 2019 and 2022 with 2019 yielding profits of nearly $20 million.  

With the acquisition of the domestic Scotiabank business and the sustained, robust growth in the economy, we anticipate the Bank can generate profits in the region of $60 million annually.  

Prior to our government’s intervention, CUB experienced annual losses. 

However, like a phoenix rising from the ashes, the bank reported $3.3 million in profits before tax for 2023, an increase of 14 per cent over 2022.  

For the next two years, the Bank’s profits should average $3.5 million annually.

State Insurance Company

Mr. Speaker:

Our government’s stewardship of State Insurance Company highlights the resilience and trust placed in our national institutions. 

State Insurance has consistently remained the insurance provider of choice for the people of Antigua and Barbuda, a testament to its reliability and commitment to serving our citizens.

State Insurance Company Ltd. is the largest local insurance company in Antigua and Barbuda, with an estimated asset base of $151.6 million.  

It has paid an average of $15.4 million in claims annually over the past four years and expects to generate profits of $10.6 million this year. 

This stability ensures that our people continue to have access to affordable and dependable insurance services.

We intend to list State Insurance on the ECSE, thereby providing an opportunity for Antiguans and Barbudans to purchase shares in the company. 

 Before moving on, Mr. Speaker, I wish to make a point regarding financial inclusion – a cornerstone of sustainable development and economic equity. 

It means ensuring that every citizen has access to affordable financial services, enabling them to save, invest, and grow. 

Our Government will be introducing new financial products to include government savings bonds, shares in various public/private sector projects and crowd funding opportunities, among others.  

This is to encourage citizens and residents to invest and generate wealth through investments with superior returns, compared to the current two percent interest rate on savings and fixed deposits. 

Our objective is to create opportunities for our people to earn a return on investment that exceeds the rate of inflation; to expand the domestic ownership class and to fuel sustainable robust economic growth and development. 

 Enhancing Infrastructure and Affordable Housing 

Mr. Speaker, our vision for the nation’s development is people-centric; prioritising improved living standards and prosperity for all our citizens. 

It is from this foundation that the Booby Alley Housing Development Project was conceived – a project centred on creating dignified and sustainable living spaces for the most vulnerable. 

The Booby Alley Housing Development is being financed with a generous $60 million grant from the Peoples’ Republic of China, which will be utilised to construct 150 climate-resilient, condominium-style homes.

This project reaffirms our government’s commitment to progress, through meaningful partnerships and is expected to be completed by the second quarter of 2026. 

We are grateful to the government and people of China for this significant gift. 

China’s philosophy of shared global prosperity through the provision of concessional loans and grants must be commended. 

The Role of National Housing and Urban Development

Mr. Speaker

Through the National Housing and Urban Renewal Company, thousands of families are enjoying their own homes.  

Investments made by this company, which is owned by the people of Antigua and Barbuda, are over $400 million for land development and home construction. 

Much more will be done in 2025, as National Housing and the Central Housing and Planning Authority (CHAPA) prepare to expand housing development throughout the country.

Further, investments in housing will be enhanced on Barbuda with the start of the Louis Hill Housing Development, which forms part of the overall master plan for the development of Barbuda. 

Phase one of this project will begin in the second quarter of 2025, at an estimated cost of $8 million.  

Our government will expand the Sustainable Island Resource Framework (SIRF) Fund to provide home improvement loan financing for vulnerable individuals in low income communities, to assist them in renovating their homes.   

The HAPPI grant program for home repairs will be further expanded in 2025.   

To address the shortage of skilled workers that has slowed the construction of these homes; we have temporarily removed the requirement for work permits, for skilled workers emanating from outside of the region.  

These workers must, however, register with the Labour Department, before they are allowed to take up employment.   

Barbuda International Airport:

One of the most notable achievements in infrastructural development was the construction and successful opening of an international airport on Barbuda, to be named the Burton-Nibbs International Airport. 

It is now poised to enhance connectivity, thus opening new avenues for tourism and economic growth.

The airport features a 6,100- foot runway, which is equipped with a full LED lighting system; and a 600 – foot parking apron, which can host multiple jets. 

In 2025, the airport will be extended by a further 2,000 feet.

This US$18 million project was completed by our Government, using resources from the Consolidated Fund, which includes advanced lease payments from PLH and Paradise Found.

The enhanced airport facility will help to transform Barbuda into a niche, luxury destination that attracts ultra-rich visitors from across the globe. 

Enhancing Utilities Infrastructure and Service Delivery

Mr. Speaker:

As part of my government’s drive to improve the utilities infrastructure in the country, we are pleased to announce the following:

Energy and Telecommunications

1. Installation of a third generator at the New Hybrid Solar Voltaic Power Plant in Barbuda. This will optimise the reliability of the Plant and minimise power outages in Barbuda.

• Commissioning the 40-megawatt LNG Power Plant at a cost of US$100 million and dredging the Crabbs Channel, to enable the LNG Power Plant to run on natural gas, thereby significantly reducing carbon emissions. 

The additional 40 megawatt on the grid means customers can expect more reliable and secure electricity service.

3. Investing US$15 million in a Subsea Cable between Antigua and Florida. 

This project will be completed in 2027 and marks the second phase of APUA’s effort to modernise the national broadband infrastructure. 

The first phase being the construction of the nationwide fibre distribution network. 

Together, these will deliver marked improvement in the quality and affordability of broadband service in our country.

Water

Mr. Speaker, turning to water.  

Our Government has invested substantially in water production, in an effort to meet the growing demands for water.

Over the next nine months, nearly US$40 million will be invested to ensure increased production and delivery of water across the country. 

Among the projects are:

1. Commissioning the Seven Seas Water Group reverse osmosis (RO) plant at Ffryes Beach in January 2025, at a cost of US$2.5 million.  The plant will produce an additional 1 million gallons of water per day for the southern sector of the island from Old Road to Jennings.

• Commissioning the NS Management RO Plant at Crabbs, to supply up to 1.5 million gallons per day starting in March 2025. This plant will supplement the Crabbs RO Plant which has a capacity of 4 million gallons.

• Commissioning the Seven Seas RO Plant at Barnacle Point which will produce 2 million gallons per day. Water from this plant will serve the northern sector of the island including Hodges Bay, Cedar Grove, Crosbies, Blue Waters, Paradise View. This facility will be completed in September 2025 at a cost of US$ 4 million.

• A second RO Plant will be installed at Crabbs with production capacity of 3.2 million gallons per day. Water from this plant will serve Willikies, Freetown, All Saints, Liberta, Potters and St. John’s. This plant is also due to be operational in September 2025 and will cost US$10 million.

• Constructing 4 new water storage tanks at a cost of US$5 million.  Two of the tanks will serve the southern side of the island and the other two the northern. Total storage capacity of these tanks is about 3 million gallons.

• Upgrading water transmission and distribution lines from old metal pipes and PVC piping to HDPE (Black Pipe). 

Areas to be addressed include:

South St John’s, Point, Michael’s Village, and New Field at an estimated cost of US$10 million.

Between January and September 2025, we will enhance water production capacity by 7.7 million gallons per day, thereby substantially addressing the water challenges that have impacted households and businesses. 

Roadworks

Mr. Speaker

Our government is resolutely implementing a nationwide road construction, repair, and maintenance programme that will be intensified in the coming months. 

The roadways that connect our communities are vital to the economic and social prosperity of Antigua and Barbuda, and we will ensure their continued development and maintenance to support our nation’s growth. 

Over the last seven weeks we have seen unprecedented roadworks in this country, and we will continue until there is a substantial enhancement of the network of roads, streets, curb and drains.  

We have a duty to deliver acceptable motorways and drainage for the benefit of our citizens and residents. 

Mr. Speaker

In 2025, the public can expect a further escalation in roadworks across every community in the country.  

We have invested over $21 million to acquire new equipment and plan to engage dozens of local contractors and heavy-duty equipment operators, to supplement the roadwork crew at the Works Department, to ensure the road programme progresses unhindered in 2025. 

Finally, we expect the comprehensive road rehabilitation project funded by the Caribbean Development Bank (CDB) to be completed in 2025. 

This project involves the reconstruction of the Sir Sydney Walling Highway, Valley Road North, Anchorage Road, and Old Parham Road. 

Enhancing Social and Gender Inclusion While Reducing Poverty and Vulnerability

Mr. Speaker,

Our government maintains an unyielding determination to improve the lives of our most vulnerable citizens. 

In 2024, we invested heavily in social protection programmes to ensure greater equity and support for those in need:

1. The Senior Citizens’ Utilities Subsidy Programme assisted 7,252 pensioners with utility vouchers, costing $7.8 million.

• The People’s Benefit Programme provided $215 monthly, to 1983 individuals with disabilities and other vulnerable persons at a cost of $4.7 million.

• Barbuda LPG Freight and Fuel Transportation Subsidy funded cooking gas and fuel transportation to Barbuda at a cost of $271,969.

Additionally, Youth and Education Empowerment Programme (YEEP) has benefitted over 7,000 citizens and residents, giving them a second chance to matriculate to higher learning  institutions. 

Also, the Emerging Female Leaders Programme, part of our gender inclusion drive, continues to empower young women, preparing them for leadership roles.

These programmes demonstrate our dedication to safeguarding the vulnerable, while fostering opportunities for growth and independence.

Youth Intervention

Mr. Speaker,

To address rising youth crime, our government has implemented a balanced approach of prevention, enforcement, and community engagement:

Engagement with Youth:

Collaborative efforts with gang members and families resulted in a truce, symbolized by a “Peace & Love” football match. 

Programs like the “Four E’s” strategy – Education, Entrepreneurship, Employment, and Personal Enhancement – provide young people with training opportunities at centres such as the Antigua Barbuda Institute of Continuing Education (ABICE) The Harrison Centre.  

The public sector egg production programme will provide valuable training in egg production and income for our young people, including at risk youths.   

Legislative Action:

The Anti-Gang Act of 2024 criminalizes gang-related activities, imposing strict penalties of up to 15 years for leaders and 10 years for members. 

The law also enhances collaboration between law enforcement agencies to more effectively curb gang violence.

Further, the Small Charges Act of 2024 introduces curfew regulations for minors, holding parents accountable with fines and possible imprisonment.

Also, the maximum penalties for gun crimes were increased.

Safety, Security, and Justice

Mr. Speaker,

Our government has made significant investments to strengthen safety, security, and the justice systems:

1. Court Refurbishment: The St. John’s Magistrates Court was upgraded with four courtrooms to improve access to justice and increase case capacity.

• Police Resources: Over $2.3 million was spent on new equipment, including vehicles, drones, firearms, and gun detection dogs. 

• Sixty-nine new recruits were added to the police force this month, with plans to train an additional 60 in 2025.

• Fire Service Equipment: To bolster fire services, five fire tenders, a water tanker, and a ladder truck were procured at a cost of $7 million.  They will be stationed across key locations to ensure rapid response and public safety.

• Enhancing Military Capacity: We expect delivery of a $2 million vessel later this month to be used by the Antigua Barbuda Defence Force Coast Guard to enhance surveillance of our coastline. 

The ABDF has also benefited from the addition of about 200 recruits during the past three years, to help support various national security endeavors.  A new cohort of soldiers will be recruited in 2025.  

Also, in 2025, the ABDF will be equipped with a Coastal Radar System, that will expand its capabilities for maritime search and rescue, and increased surveillance, protection and management of our marine space against narcotics and contrabands.  

The ONDCP which is a critical part of law enforcement will benefit from an increase in staffing in 2025. 

Mr. Speaker, these initiatives are tangible actions aimed at enhancing

security, reducing crime, and safeguarding our citizens, residents and visitors. 

Together, we are building a safer, more peaceful and harmonious Antigua and Barbuda.

Improving Productivity through Access to Quality Education, Affordable Healthcare, and Housing

Mr. Speaker:

Having already presented on the housing component of this strategic pillar, I will now focus on Education and Healthcare.

Education 

I am pleased to announce that work shall commence on the construction of the Five Islands Primary School in a matter of weeks.  

As you are aware, this is part of the University of the West Indies (UWI) Five Islands Campus expansion project, that is being financed with a US$80 million concessional loan from the Saudi Fund for Development.  

This is the first step of the build out and more work is expected to come on stream in 2025. 

Our investment to expand the campus is timely as enrolment has surpassed 1,100 students and the numbers are expected to climb even higher this year, as more local and regional citizens access tertiary level education here in Antigua and Barbuda.  

Establishing dormitories is very important for us to attract regional and international students and will be among the first phase of construction.  

Also included in phase 1, are new instructional complexes, upgrades to the existing campus buildings, administrative complex, a sports complex and playing fields. 

Additional projects to be executed in 2025 are investments in secondary and primary school plants that will be facilitated with funding from the Caribbean Development Bank. 

Also, our government is grateful for the US$1.5 million grant provided by the Dominican Republic to facilitate construction of the new Holy Trinity Primary School in Barbuda.

Improving Health Care and Investing in Mental Wellness

Mr. Speaker,

We continue to prioritise investments in healthcare to address the evolving needs of our people. 

Through strategic interventions, we are transforming Antigua and Barbuda’s healthcare system to deliver better outcomes and build resilience.

Completion of the Renal Centre

In 2022, our government secured US$4.7 million through the Caribbean Development Bank and the Inter-American Development Bank to strengthen healthcare resilience in the wake of COVID-19. 

These resources were provided to purchase equipment including dialysis machines, dialysis chairs, an incinerator for the hospital, and a reverse osmosis plant.  

The dialysis machines and related equipment are to be installed in a specialised Renal Centre which is being constructed on the old Holberton Hospital site. 

The government has allocated $20.4 million for construction of the centre and acquisition of additional equipment.

The Renal Centre, expected to be completed in 2025, will provide life-saving care for chronic renal patients, while boosting overall healthcare capacity.

The Cancer Centre

In a decisive move to ensure access to advanced cancer care, the government acquired the Eastern Caribbean Cancer Centre through compulsory acquisition and later finalised its sale to a North American venture capital firm for $13 million in June 2024.

This intervention ensures that citizens will again have access to life-saving cancer treatments, with the Centre positioned as a regional hub for advanced cancer care.

The expertise and innovation brought by the new owners will secure Antigua and Barbuda’s leadership in cutting-edge cancer treatment, benefiting both locals and the wider Caribbean.

These actions demonstrate our government’s determination to prioritise the health and wellbeing of its people, while strengthening the healthcare system. 

Mental Health 

Mr. Speaker

Our ongoing efforts to improve mental health services in the country include the acquisition of a 6-acre facility in Seaview Farm, at a cost of $8.1 million. 

The property will be retrofitted and converted to a mental health facility that will provide holistic and integrative care. 

This new, modern centre will deliver improved services to those individuals needing mental healthcare and signals our enhanced focus on behavioural issues and mental wellness. 

Adapting to Climate Change, Managing Disaster Risk, and Promoting Environmental Sustainability

Mr. Speaker:

I am pleased to announce the successful upgrade of Antigua and Barbuda’s accreditation with the Green Climate Fund (GCF), a significant milestone in our fight against climate change. 

This upgraded status enables us to access up to US$50 million in concessional funding and over US$50 million in grants, for transformative climate adaptation and mitigation projects.

Using International Law to Seek Redress

Mr. Speaker,

Antigua and Barbuda continues to stand at the forefront of the global fight against climate change, leveraging international law to seek justice for our nation and other SIDS.

Earlier this year, Antigua and Barbuda, in collaboration with other SIDS, successfully secured an Advisory Opinion from the International Tribunal for the Law of the Sea (ITLOS) on the harmful effects of greenhouse gas emissions on the marine environment.

This landmark Opinion expanded the definition of marine pollution to include greenhouse gases, establishing that nations party to the UN Convention on the Law of the Sea have a legal obligation to prevent, reduce, and control marine pollution related to greenhouse gas emissions. 

In further pursuit of climate justice, I was honoured to lead a team of young Antiguans and Barbudans to represent our country, and other small states, before the International Court of Justice (ICJ) in The Hague just days ago. 

There, we advanced our fight against the disastrous effects of global warming and sea-level rise. 

Mr. Speaker, our struggle for climate justice is unrelenting. 

We will not stop fighting for our nation, our civilization, and our very existence.

Loss and Damage Fund

Mr. Speaker

Antigua and Barbuda has not only advocated tirelessly for the rights of SIDS, but has also actively shaped global climate action. 

One of our key contributions to global progress is the establishment of the Loss and Damage Fund, agreed by the Committee of the Parties (COP) after strong advocacy from small states.

This fund is more than just financial aid – it is a long-overdue recognition of the irreversible losses and damage our people endure daily due to climate change.

However, Mr. Speaker, while the fund’s creation is an accomplishment, like many promises in climate negotiations, it remains woefully underfunded. 

My government will push tirelessly to ensure this mechanism becomes operational in 2025 and deliver benefits for those facing the harshest impacts of climate related events.

Mr. Speaker, Antigua and Barbuda is a small nation, but we are valiant and determined to secure a future that safeguards our people, our civilisation, and our livelihoods.

Creating a Resilient, Harmonious and Prosperous Barbuda 

Mr. Speaker:

As the Government continues to aggressively stimulate growth and uplift the lives of our citizens, nowhere is this progress more evident than in Barbuda. 

Our drive to create a resilient, harmonious and prosperous nation, is very well demonstrated in the investments made in Barbuda during 2024 and what we have planned for 2025.

This year, with a grant of about US$2.8 million from Canada and loan funds of $12 million provided by CDB, our government will continue to make governance and social investments on Barbuda.  

The projects will include:

1. completing repairs and upgrades to the Barbuda Council Building, the Community Centre, and the NODS Barbuda Office.

ii. providing furniture and equipment for the Barbuda Council Building, the

Community Centre, and Sir Mc Chesney George Secondary School

iii. investing in equipment for enhanced utility maintenance and to support delivery of consistent and reliable energy service 

iv. constructing a Multi-Purpose Centre

Mr. Speaker:

As we propel Barbuda forward, we are acutely aware of the importance of upgrading the island’s road network and making it more resilient. 

Starting in 2025, we will be investing an additional $50 million in road infrastructure on Barbuda. 

Our Government has already accessed approximately $35 million from the Caribbean Development Bank, to initiate major upgrades to the road network across Barbuda. 

We will work with CDB to ensure that local contractors are empowered and equipped to compete for these road construction contracts. 

Our government is proud to announce a partnership with PLH, whereby 50 per cent of transfer taxes and other taxes and levies paid by the developer, will be allocated to fund additional road infrastructure development throughout Barbuda. 

Improved roads will facilitate easier travel across the island, enhance access to essential services, and boost trade, all while creating jobs in construction and enhancing the earning potential of tourism and tourism-related sectors. 

Barbuda Seaport Project

Another example of our strategic investments in climate-resilient infrastructure will be the Barbuda Seaport project.   

The Antigua Port Authority has engaged expert consultants to conduct comprehensive studies, including environmental impact assessments, geotechnical evaluations, and cost-benefit analyses ahead of the construction. 

Estimated at US$18 million, this multipurpose seaport will form part of critical infrastructure to enhance Barbuda’s connectivity by accommodating regional and international container traffic, passenger ferry services, and direct cruise ship arrivals. 

The seaport will serve as a catalyst for Barbuda’s economic growth, fostering long-term sustainability and prosperity for the island and its future generations. 

Cooperation with Bilateral and Multilateral Partners

Mr. Speaker:

Antigua and Barbuda maintains robust diplomatic relations with a diverse array of bilateral and multilateral partners, fostering cooperation in areas that benefit our national development. 

Key partnerships with countries like the Peoples Republic of China, Canada, Cuba, The Kingdom of Saudi Arabia and the United States have contributed to critical infrastructure development, education, healthcare, and climate adaptation and mitigation initiatives. 

While these partnerships are noteworthy, we also recognise and value the essential contributions of many other nations and agencies, whose collective efforts support our vision of a resilient and prosperous nation.

Growth and Development in 2025

Mr. Speaker:

As we look toward 2025, we are optimistic about the trajectory of our nation’s growth. 

It is projected that our economy will expand by an impressive 6 per cent, driven by the significant projects slated to commence in 2025. 

By the end of the year, our GDP at market prices will have climbed to $6.5 billion.

These projects will not only stimulate economic activity but will also create jobs, boost local businesses, and improve the overall standard of living for our people.

I mentioned many of them earlier in this presentation, including water, energy and roads.

Let me observe here that tourism continues to be a cornerstone of our economic success. 

We are pleased to note that 2025 is poised to be a record-breaking year. 

Projections indicate that we will welcome the highest number of stay-over visitors and cruise passengers in our history. 

We all know that this large number of visitors will result in stable and expanded employment, more money for hotels and restaurants, and higher incomes for workers, vendors and taxi drivers.  

This achievement is the result of purposeful interventions, to enhance the tourism experience, market our destination, and collaborate with stakeholders to solidify our position as a premier travel destination in the region, for the benefit of all our people.

A Call for Compliance and Fairness in Taxation

Mr. Speaker,

This year marks a pivotal moment in our nation’s journey toward fairness, accountability, and shared prosperity with regard to taxation.

Let me be clear: there will be no new taxes. 

But this will be the Year of Compliance.

My Government has always championed a low tax threshold for our people, in order to boost their disposable incomes to own homes and businesses, invest in the future of their children; and contribute to the welfare of our nation. 

We believe and have proven that our country’s development can be achieved without a direct tax on personal income.

While no new taxes will be introduced, we will insist on compliance with the payment of existing taxes.

The taxes we apply are investments in our nation’s future.

They fund our schools, healthcare, roads, social services, and infrastructure that enable businesses and communities to thrive. 

Compliance is not just a legal duty; it is a collective responsibility that binds us together as a nation.

In 2024, we saw significant cases where some institutions withheld taxes owed to the government, impacting our ability to deliver essential services. 

This cannot continue. 

We are taking decisive steps to modernise tax administration, strengthen enforcement, and ensure accountability. 

This includes investing in digital solutions for improved efficiency and simplifying procedures to make compliance easier for businesses and individuals.

Mr. Speaker, we recognise that as we require compliance, the government must also act responsibly.

We must be fair, transparent and consistent in our dealings with businesses and the public on a whole.

Hence, in 2025, we will accelerate the arrears clearance strategy to settle long-overdue payments to contractors and suppliers. 

As indicated earlier, we have started this process and will focus on addressing verified liabilities, while limiting the accumulation of new arrears.

Estimates of Revenue and Expenditure for Fiscal Year 2025

The “2025 Budget Estimates” are framed within the context of the Medium-Term Fiscal Framework (MTFF), which is rooted in the Medium-Term Development Strategy 2024 – 2029.   

We implemented reforms in 2024 to achieve fiscal stability, debt sustainability and to promote economic growth for the benefit of all.

As a result, we realized improvements in fiscal performance and will build on these gains in the 2025 Budget.

Mr. Speaker, we will further cement our fiscal responsibility track, by launching a Citizens Transparency Portal, aimed at enhancing accountability and building trust between the public sector and citizens and residents. 

It will be a centralized, online platform where the public can access information about government activities including procurement, tax expenditure and concessions, budget execution, and performance of key government agencies. 

The purpose of this portal is to  empower citizens, by providing them with the knowledge necessary to engage in governance, participate in civic activities, and hold public officials accountable.

Our Government’s dedication to transparency and accountability is also evidenced by the publication of its Fiscal resilience Guidelines and establishment of the Fiscal Resilience Oversight Committee (FROC).  

The FROC is responsible for assessing and reporting on the government’s compliance with the general fiscal principles and targets outlined in the Fiscal Resilience Guidelines.  

Dr. Errol Cort is the Chairman of the Committee, and the Vice Chair is Professor Justin Robinson, Principal of the UWI Five Islands.  

Other members of the Committee represent the public sector, trade unions, the Leader of the Opposition, and the Chamber of Commerce. 

The ECCB’s country economist for Antigua and Barbuda is also a member. 

Over the course of this year, the Committee met with departments in the Ministry of Finance to address tax administration, expenditure management, and debt sustainability matters. 

In 2025, the FROC will enhance its engagement with the public sector and publish its own report on the performance of the Government.

Budget Forecasts

Mr. Speaker, this Budget forecasts an overall surplus of $82.0 million (1.3% of GDP) and a primary surplus of $220.6 million (3.4% of GDP).

The projected outcome is in line with the fiscal sustainability targets established in the Fiscal Resilience Guidelines. 

Total revenue including grants is budgeted at $1.43 billion while total expenditure (excluding amortization) is budgeted at $1.35 billion. 

Principal payments are 10 per cent of GDP at $656.6 million and net financing of $649.7 million will be required in the upcoming fiscal year.  

Honouring commitments to Public Servants

Mr. Speaker, before presenting the revenue and expenditure estimates, I wish to reaffirm our Government’s commitment to public servants.  

Negotiations for salary increases were concluded in late 2023 and the increase implemented in January of this year.

We must now generate the resources to pay the retroactive amount due to public servants in the shortest possible time.  

In December 2022, a contribution to the eventual retroactive pay was made to eligible public servants. 

It is our intention to make a second contribution in the form of one month’s gross basic pay before the end of December 2024. 

Preliminary estimates of the retroactive pay based on the negotiated increase indicates the Government’s obligation to the eligible categories of workers is about $100 million. 

To avoid the accumulation of salary arrears in the future, we will engage in more timely negotiations with bargaining agents and implement the agreements as a matter of priority.

Revenue and Expenditure

 Mr. Speaker, I turn now to revenues and expenditure projected in this Budget.

Recurrent revenue is projected to be $1.41 billion (21% of GDP) of which tax revenue is $1.19 billion or 18 per cent of GDP.  

This is still below the ECCU average of 25 per cent of GDP, confirming Antigua and Barbuda is a low tax jurisdiction. 

Further, non-tax revenue of $222.9 million is expected in 2025, with CIP receipts contributing over 70 per cent.

Major contributors to Tax Revenue are Direct Taxes of $186.4 million comprising Corporation Tax of $133.9 million, Property Tax of $42.5 million, and Unincorporated Business Tax of $10 million. 

Indirect tax revenue of $1 billion includes: inflows from the Antigua and Barbuda Sales Tax, $492.8 million; Stamp Duties of $67.1 million; the Tourism Guest Levy, $25.7 million; Import Duties, $162.2 million; Revenue Recovery Charge, $127.6 million; and Consumption Tax of $78.8 million.  

Mr. Speaker:

Recurrent expenditure is estimated to reach $1.11 billion in 2025.  

This will be mainly driven by Wages and Salaries of $477.9 million; Goods and Services of $189.7 million; Interest Payments of $138.5 million; and Transfers of $306.9 million. 

Expenditure on transfers includes pensions and gratuities of $79 million; Contribution to Social Security and Medical Benefits of $49.2 million; $36.5 million for Sir Lester Bird Medical Centre; and $9.4 million for the Barbuda Council. 

Projected capital expenditure is $231.7 million (3.5% of GDP) and reflects the government’s ongoing effort to invest in infrastructure development. 

Mr. Speaker,

Revised expenditure control mechanisms were introduced in 2024, to promote fiscal discipline in Ministries and Departments and ensure more efficient use of limited resources. 

These and other public financial management policies will be employed in 2025, to enhance service delivery and deliver even better fiscal outcomes. 

Allocations to Ministries

For the 2025 Recurrent Expenditure Budget, $188.9million is allocated to the Ministry of Education, Sports and Creative Industries.  

This is followed by the Prime Minister’s Ministry and Ministry of Finance, Corporate Governance and Public Private Partnerships, with an allocation of $186.3 million.

The Ministry of Health, Wellness, Social Transformation and the Environment is allocated $156.7 million. 

These allocations align with the Medium-Term Development Strategy which prioritizes access to education and affordable health care and enhancing macroeconomic management.  

The 2025 recurrent budgetary allocations for the other Ministries are as follows:

• Ministry of Housing, Works and Urban Renewal: $108.7 million

• Attorney General’s Office and Ministry of Legal Affairs, Public Safety, Immigration and Labour: $118.2 million

• Ministry of Foreign Affairs, Trade and Barbuda Affairs: $32.7 million

• Ministry of Tourism, Civil Aviation, Transportation and Investment: $36.4 million

• Ministry of Information, Communication Technologies, Utilities and Energy: $16 million

• Ministry of Agriculture, Lands, Fisheries and the Blue Economy: $21.2 million

The 2025 Budget also includes allocations for other offices, such as the Legislature, the Judiciary, the Office of the Governor General, Ombudsman, Electoral Commission, and others.  

Full details of all budgetary allocations are available in the Appendices to the printed version of this presentation.

Capital Expenditure

Infrastructure development is paramount for any government.  

In keeping with this thrust, $147.9 million of the $231.7 million budgeted for capital expenditure is allocated for improving our infrastructure.

Of this, $95.9 million is for road rehabilitation and $43.8 million will be spent on building repairs.

Budget Financing

As indicated earlier, the net financing requirement for Budget 2025 is $649.7 million and will be primarily financed by the issuance of securities and disbursement of loans and advances.   

Allocations for the Prime Minister’s Ministries

Mr. Speaker, during the debate in this Honourable House, Ministers will address the allocations to their Ministries. 

They will explain the purposes, programmes and projects on which monies will be spent, addressing the various subject areas, some of which were not covered in this statement.  

I now take this opportunity to highlight areas of priority in the Ministries for which I am responsible. 

The amounts allocated are $47.7 million for the Office of the Prime Minister and $138.6 million for the Ministry of Finance, Corporate Governance and Public Private Partnerships.

Some of the major priorities for these ministries are:

• Strengthening Public Financial Management and supervising finance administration operations, to ensure compliance with the Finance Administration Act

• Implementing a Concessions Monitoring initiative to ensure investment incentives are utilized as intended.  

• Undertaking targeted reforms in the Treasury Department

• Enhancing tax administration through legislative and procedural adjustments  

• Completing the National Housing and Population Census

• Implementing the Government’s arrears clearance strategy to regularize amounts due to suppliers.  

Mr. Speaker,

We are preparing to roll out this comprehensive strategy next year.  However, before the end of December, the Government will make payments to contractors, merchants and other service providers, including landlords, to start reducing our outstanding obligations. 

The amount to be paid to each contractor and vendor will, of course, depend on cash flow, but the intention is to ensure that all contractors and vendors receive some payment. 

CONCLUSION

Mr. Speaker, 

This Budget is more than a financial plan—it is a declaration of our vision and commitment to a prosperous, equitable, and harmonious Antigua and Barbuda.

It sets out a clear path for progress and prosperity, fortified by bold investments in infrastructure, social development, and economic resilience that will transform our nation.  

Our ambitious infrastructure programmes will not only continue to modernize our roads, electricity, and water systems, but also create employment opportunities that uplift our people and drive physical development for generations to come. 

These projects are not just about building structures; they are about laying the foundation for shared prosperity, enabling every citizen to benefit from a stronger, more connected nation.  

Investments in healthcare facilities, schools, and social support programmes – from subsidies that ease the cost of living to initiatives that nurture our youth – are designed to create a society where no one is left behind. 

This is a Budget that empowers the people, protects the vulnerable, and enhances the wellbeing of every household.  

Mr. Speaker, this is also a call to action: A call for national cohesion, unity, and cooperation. 

The challenges we face demand the strength of collective effort, the spirit of shared responsibility, and the resolve to build a future that is bright for all. 

Together, we can seize the opportunities this Budget provides, to overcome obstacles and create a nation that thrives.  

Your Government, the people’s government, has paved the way forward – a path defined by progress, innovation, and inclusivity. 

It is now up to each of us to use that path to build a nation where opportunity abounds; where every citizen prospers, and where Antigua and Barbuda shines as a beacon of progress, resilience, and hope for generations to come.  

As we look to the future, let us draw inspiration from the timeless wisdom of Mahatma Gandhi who observed that “The future depends on what you do today.” 

Mr. Speaker, I thank you and I commend this Budget to this Honourable House.

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