The Antigua and Barbuda government is optimistic about the nation’s economic outlook, projecting an improvement in Gross Domestic Product (GDP) for 2025, underpinned by robust developments in tourism, infrastructure projects, and job creation.

On Thursday, Prime Minister and Minister of Finance Gaston Browne unveiled the government’s fiscal budget for the year, totaling XCD$2 billion. The budget allocates $1.7 billion to recurrent expenditure, covering daily operations such as salaries, utilities, and maintenance.

The single largest allocation, $798.1 million, is dedicated to servicing the national debt to allow the government to meet its financial obligations while managing fiscal constraints. Beyond this, substantial funding is directed toward essential ministries. The Ministry of Works is set to account for most government spending, with over XCD $267 million allocated, indicating a strong focus on infrastructure development and maintenance.

Expenditures and Government Allocation

Government spending in 2025 shows a strong allocation for public services in the area of education, health & environment. An amount of $9.4 million has been allocated for the Barbuda Council.

Browne, in presenting the budget, expects the economy to grow by 6 per cent, driven by major projects in water, energy, roads, and tourism with the GDP projected to hit $6.5 billion by the end of 2025. The International Monetary Fund (IMF) is projecting 3.5 per cent growth 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,” he said.

“This is a budget that empowers the people, protects the vulnerable, and enhances the well-being of every household,” Browne said

Tourism will continue to play a pivotal role, with projections for a record-breaking year in stayover visitors and cruise passengers. The government expects this surge to stabilize employment, boost businesses, and increase incomes for workers, vendors, and service providers in the tourism sector.

In line with its growth strategy, the government has committed to no new taxes in 2025. However, adjustments to the tax on sugary beverages may be considered, with revenues earmarked for promoting healthier lifestyles.

Taxation and Compliance:

• No new taxes except a possible adjustment on sugary beverages, with proceeds directed towards healthier lifestyle initiatives.
• Strong emphasis on tax compliance to fund critical services such as healthcare, education, and infrastructure.
• Digital solutions and modernized tax administration to improve efficiency and enforcement

Browne further pledged to address salary issues within the public service, announcing a retroactive pay distribution of $100 million, which will be paid out before the end of December 2024. The government also intends to enhance the salary negotiation process to prevent delays in future payments.

Meanwhile, the government expects to collect most of its revenue, which is budgeted at $1.43 billion, from these major tax sources:

• Antigua and Barbuda Sales Tax: $492.8 million.
• Import duties: $162.2 million.
• Revenue recovery charge: $127.6 million.
• Corporation tax: $156.4 million.

However, direct expenses will consume $1.11 billion, with an additional $237 million allocated for capital projects aimed at enhancing the country’s infrastructure.

Key Areas of Expenditure:

• Wages & Salaries: $477.9 million
• Goods & Services: $189.7 million
• Interest Payments: $138.5 million
• Transfers (e.g., pensions, Social Security): $306.9 million

The budget debate has been set for December 10, 2024.

N.B This story has been updated to reflect changes in budget allocation using total government spending for the public sector.