ST. LUCIA-PM presents the budget with an eye on a general election

CASTRIES, St. Lucia, CMC—Prime Minister Phillip J Pierre has presented an EC$2.05 billion (One EC dollar = 0.37 cents) budget to Parliament, extending a tax amnesty program, allowing for improved allowances for nurses and other public servants, and 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 told legislators.

He said that the budget would 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.

Pierre said that during the fiscal year, the government will undertake a number of projects, including the construction of condominium-type houses in Babonneau, north of here, and the construction of Rock Hall Housing in the Castries east area.

He said construction on the elderly home in Soufriere on the West Coast will begin in July this year and that funds have been secured for the construction of the Soufriere Administrative Building.

Pierre said that a 10-year passport will be introduced at no extra cost and that, effective September this year, the Ministry of Education will be given an annual allowance of EC$250,000 to purchase feminine hygiene products for secondary schools to reduce the incidence of period poverty.

He said that effective this new academic year, the government will pay an additional two Caribbean Examination Council (CXC) subjects for students, one of which must be a science or foreign language subject. This will bring government assistance to four CXC subjects. He said students who left school within one year would be eligible for the program.

Pierre, also the Finance Minister, said that nurses who have completed their training and, upon completing two years of employment, will be entitled to permanent employment provided that the relevant authority has approved them.

“Government will invest in nurses attending the Sir Arthur Lewis Community College (SALCC) to assist with the supply of nurses,” he said, adding that for the academic year commencing September 2025, first and second-year nursing students will receive EC$2500 tuition support, while third and final year students will receive EC$5000 and EC$10,000 respectively.

Pierre said that the Airport Service Charges for Caribbean travel will be reduced by 50 percent from 1 June to 31 December 2025 in the first instance and that businesses investing in cybersecurity, Artificial Intelligence tools, and approved ICT training for staff will be allowed a tax deduction of up to EC$50,000.

He said that the current tax amnesty would be extended to taxes due up to 31st December 2023 and that the existing tax amnesty program would be extended to May 1, 2026.

He said the program also includes fines and penalties for late corporate filings at the Companies Registry.

The government said bakers would receive a rebate on bulk gas purchased and that liquified petroleum gas products would continue to be subsidized. Effective 1 May, the price of fuel will be capped at and shall not exceed EC$16.00 per gallon until January 1, 2026.

Pierre said that all non-established government employees who are daily paid or classified as wage earners will be given permanent employment after two years and that more than 1,900 workers on the contract will benefit from this measure.

In addition, temporary teachers will now receive full salaries for August, and income derived from pensions will be tax-free, effective January 2025.

Pierre said that pensioners will receive a one-off payment of EC$600 in November 2025, and effective July 1 this year, the National Insurance Corporation (NIC) will increase pension payments in line with the consumer price index.

He said police, fire, and correctional officers who have served for at least 20 years and reached the age of 55b would qualify for a NIC pension and that effective January 1 this year, the maximum allowable deductions will move from EC$30,000 to EC$40,000.

“Within that cap, the following allowance will be increased: maximum child allowance to EC$5,000 per child under 18 years, dependent relatives allowance to EC$5,000, mortgage will move to EC$40,000, university education to EC$10,000, credit union shares and savings to EC$10,000, investment instruments through local and regional institutions to EC$10,000, annual earnings of EC$25,000 or less will continue to attract no income tax,” Pierre told Parliament on Tuesday night, adding that medical expenses will remain uncapped.

Pierre told legislators that by the end of July next year, St. Lucians would have been called to decide and that “we are prepared to face the people.

“ We have no desire to extend our term to six years. We are proud of our work. We are confident in our achievements and the goodwill and common sense of the St. Lucian people.

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

The ruling St. Lucia Labour Party (SLP) controls 13 of the 17 seats in the Parliament, with two other legislators sitting with the government. At the same time, the main opposition, the United Workers Party (UWP), has the remaining two seats.

Pierre said that he is hopeful that from the budget proposals, “and as you have seen from all the work that we have done in our first term, we trust that the St. Lucian people can see the positive transformation of our country.

“We have introduced many successful initiatives. We are not about making empty promises… we did the things that we said that we were going to do,” he said, adding, “We do not believe that development in St. Lucia should mean that we had to give away our country to so-called developers, who came with their two hands empty and swinging.

“Instead, we said that development should start first with the development of our people through investment in their education and health care. The advancements in our healthcare and education are there for everyone to see. We do not just make promises. We deliver,” Pierre said.