Prime Minister and Minister for Finance Philip J Pierre on March 24 laid the Estimates of Revenue and Expenditure for the 2026 to 2027 financial year before Parliament, outlining improved fiscal performance and projections for continued economic growth in Saint Lucia.
Presenting the figures at the House of Assembly, Pierre said the outlook for the current fiscal year reflects one of the strongest performances in recent times.
“The year-end outlook for the 2025 to 2026 fiscal year points to one of the best budget performances in recent times,” he stated. “It resulted in positive balances on all the fiscal accounts and a significantly reduced overall fiscal deficit.”
He detailed that the current surplus outperformed expectations.
“A current surplus of 199.3 million was projected. However, the year-end outlook indicates a current surplus of 243.6 million,” Pierre said.
Similarly, recurrent, and primary surpluses exceeded projections.
“A recurrent surplus of 65.9 million was projected. However, we anticipate a surplus of 114.8 million,” he explained. “A primary surplus of 34.7 million was projected, and it is estimated that this will be 90.1 million.”
Pierre added that the overall fiscal deficit has been reduced.
“The overall fiscal deficit was originally projected at 202.1 million and has been reduced to 143.8 million, reflecting a decline of 58.2 million,” he said.
The Prime Minister noted that the previous financial year also recorded similar improvements.
“The actual performance for the 2024 to 2025 financial year has been finalized, and a similar pattern has emerged,” he stated, citing a current surplus of 138.9 million and a reduced overall deficit of 144.4 million.
“These results speak to a continued trend of sound, prudent fiscal management that provides benefits to the people while generating revenue from the effects of economic expansion and growth,” Pierre said.
Turning to the new fiscal year, he acknowledged global uncertainties but expressed confidence in the country’s economic trajectory.
“We are alive to geopolitical issues that confront us, over which we have little control, but I can assure the people of Saint Lucia that their government will continue on the path of prudence and responsibility,” he said.
Pierre added that growth is expected to be driven by key sectors.
“I am optimistic that this year will be one of growth,” he noted. “These estimates are based on projections for continued economic growth, supported by improvements in tourism, increased construction activity, and expansion in domestic economic activity.”
He said the government will prioritize resilience and efficiency in its fiscal strategy.
“Government will endeavor to strengthen the country’s resilience in preparation for the negative effects of climate change and economic shocks,” Pierre stated. “Every effort will be made to improve productivity and the efficiency and delivery of government services.”
The Prime Minister also outlined three central pillars guiding the 2026 to 2027 budget.
“We will reduce unnecessary expenditure and build efficiencies in government operations,” he said. “We will consolidate gains made in healthcare, public assistance, education, youth development and the economy, and we will focus on medium to long-term plans to improve the economic well-being of our people.”
Pierre disclosed that total expenditure for the upcoming fiscal year is projected at $2.189 billion.
“Total expenditure is 2.189 billion, 6.4 per cent above the approved estimates for 2025 to 2026,” he said.
He added that recurrent expenditure is estimated at $1.750 billion, with capital expenditure at $298.6 million.
“Total revenue and grants are projected at 1.83 billion, of which tax revenue is 1.58 billion,” Pierre stated.
The government is also projecting a primary surplus and an overall fiscal deficit.
“We are projecting a primary surplus of 48.6 million,” he said. “A projected overall deficit of 212.4 million, equivalent to 2.8 per cent of GDP, is anticipated.”
Despite global economic pressures, Pierre maintained that the government’s approach will remain focused on protecting citizens and sustaining growth.
“I can assure the people of Saint Lucia that they will always come first,” he said.