Thorne slams ‘reckless’ $5.13bn Budget

• Opposition Leader slams $5.13 billion budget as a cycle of reckless borrowing and high taxes

• Debt repayments to rise to $1.76 billion, threatening funding for essential public services

• Government criticised for maintaining unpopular taxes despite calls for relief

• Accusations of wasteful spending on travel, consultants, and diplomatic postings

• Concerns raised about economic growth projections and the country’s ongoing debt trap

 

Leader of the Opposition Ralph Thorne has launched a scathing attack on the government’s newly announced $5.13 billion Budget, labelling it a dangerous cycle of borrowing and excessive taxation that fails to provide relief for struggling Barbadians. 

In a preliminary response to the 2025-2026 Estimates of Expenditure and Revenue, Thorne warned that rising debt repayments and overly optimistic revenue projections will leave public services critically underfunded, while citizens continue to bear the brunt of a heavy tax burden.

Debt concerns

“The government’s debt service obligations continue to rise although the governor of the Central Bank has stated that the debt-to-GDP ratio is declining and that the government’s ability to manage the debt is improving,” Thorne told Barbados TODAY.

“It must be a concern that for yet another year the government is budgeting to pay out close to $1 billion in debt repayment and interest.”

With $1.76 billion set aside for debt payments—a jump from $1.59 billion last year—the opposition leader argued that essential services will suffer as more money goes towards repaying creditors.

“The result of this debt repayment obligation will be fewer tax dollars available for vital public services such as healthcare, road repair, water distribution, and general social development,” he said.

Tax ‘burden’

The budget allocates $120.9 million to the Queen Elizabeth Hospital and $119.1 million to the University of the West Indies, but Thorne warned that rising debt could limit the government’s ability to properly fund these institutions in the long term.

“This means that there is likely no foreseeable end to the borrowing and a continued high tax burden on Barbadians,” he added.

Thorne further criticised the government for refusing to roll back the water and sewage tax, the foreign exchange fee, and the fuel tax, despite growing calls for relief.

“This is terribly disappointing since Barbadians have been looking forward to relief from the water and sewage tax,” he said.

“Even the IMF seems to be of the view that the burden of the foreign exchange fee should be relieved. We ask whether Barbadians will continue to be burdened by the inflationary fuel tax.”

Government spending and growth

Thorne also took aim at government spending, accusing the administration of lavish expenditures on travel, consultants, and unnecessary diplomatic postings while, according to him, ordinary Barbadians continue to struggle.

“While Barbadians continue to carry these burdens, the government continues to luxuriate and squander public money on excessive travel with large entourages, large numbers of consultants with dubious responsibilities, and the creation of new diplomatic postings for friends and family that have added no value to our fortunes,” he said.

The budget also includes $15.4 million for Invest Barbados, $13 million for the CAF-funded Road Rehabilitation Programme, and $11 million for female dormitories at the Regional Police Training Centre. While some may argue that these allocations serve various national needs, the opposition leader questioned whether the government is prioritising efficient spending.

‘Debt cycle’

Thorne also said that the country remains trapped in a dangerous debt cycle despite the government’s previous multibillion-dollar debt write-off a few years ago.

“The emerging debt trap continues despite the government having written off $2.4 billion in 2018 and 2019,” he said.

And while government officials continue to boast about economic growth, the opposition leader argued that the numbers tell a different story, noting: “After the several proclamations about a growing economy, Barbados continues to drown in excessive spending and borrowing by a government whose policies move little beyond borrowing, taxing, and spending.”

He also questioned whether official economic projections match reality.

“There is a conspicuous lack of creativity in government’s policy, and it is clear that the economy has not been performing in the robust manner as government’s spokespersons have been suggesting,” he said.

Thorne told Barbados TODAY that his team would review the full budget details before providing a more detailed response.

“Our team will provide more detailed analysis after we have fully examined the voluminous document,” he said.
(SM)