BRIDGETOWN, Barbados, CMC The Government on Tuesday laid its 2026–2027 Budget in Parliament, outlining projected revenue and expenditure for the upcoming financial year and revised fiscal estimates for 2025–2026 ahead of debate on the Appropriation Bill, 2026, set to begin March 2.
For the current financial year 2025–2026, revised figures show total revenue on a cash basis of BD$3.856 billion, comprising BD$ 3.663 billion in tax revenue and BD$ 192.6 million in non-tax revenue and grants.
Total expenditure, exclusive of amortization, is projected at $3.939 billion, including $3.419 billion in current spending and $520.8 million in capital outlays.
The revised fiscal deficit stands at $83.8 million on the International Financial Institution (IFI) basis, equivalent to 0.5 per cent of gross domestic product (GDP), which is estimated at $16.243 billion at market prices.
However, the primary balance is projected to record a surplus of $658.4 million, or 4.1 per cent of GDP, on a cash basis. For 2026–2027, the government projects a significant increase in revenue. On the accrual basis, current revenue is forecast at $5.276 billion.
On the cash basis, revenue is projected at $5.179 billion, representing an increase of $1.323 billion, or 34.3 per cent, over the revised 2025–2026 level. Total expenditure for 2026–2027 is estimated at $6.139 billion on the accrual basis, inclusive of amortization.
Of this amount, $5.165 billion is allocated to current expenditure, while $973.8 million is earmarked for capital expenditure and amortization.
On a cash basis and exclusive of amortization, total expenditure is projected at $5.076 billion, with $4.186 billion in current expenditure and $889.8 million in capital spending. Current expenditure increased by $766.7 million from the revised 2025–2026 figure.
Spending on goods and services is expected to rise by $376.2 million, from $590.5 million to $966.7 million, while current transfers are projected to increase by $368.4 million, or 32 per cent, to $1.520 billion.
Debt servicing costs, including principal and interest payments, are expected to total $1.496 billion.
The primary balance for 2026–2027 is projected to record a surplus of $817.5 million, equivalent to 4.8 per cent of GDP, or $17.065 billion on a cash basis.
The Estimates will form the basis of debate in Parliament as legislators consider the Appropriation Bill, 2026.
and then 