Mottley says funding for manifesto pledges ‘grounded in fiscal discipline’

Barbados Labour Party leader Mia Mottley has dismissed critics’ concerns about how her administration intends to finance key 2026 manifesto promises, insisting that the Government’s fiscal position remains sound and fully transparent ahead of next month’s general election.

At a public meeting in Parish Land, Christ Church, she responded to criticism from economists who questioned the feasibility of financing the proposed programmes if the party is re-elected.

A central feature of the manifesto is the Barbados Republic  Child Wealth Fund, which guarantees a $5 000 government investment for every child born in Barbados on or after November 30, 2021. The funds are held in trust until adulthood and are expected to grow through compounding returns.

Other commitments include expanded compensatory income credits for households earning up to $50 000, increased reverse tax credits for lower-income earners, cost-of-living cash support for pensioners and vulnerable groups, and an increased tax-free allowance for pensioners. These measures are estimated to cost approximately $142.2 million annually.

Responding to the criticism, Mottley said: “A question has been asked by some economists… how will we be able to afford what we have said? But for those who read beyond the headline, you will notice that that surplus is only for April to November. The entire fiscal year is from April to March, so there is more to come.”

She pointed to legislation requiring the publication of a pre-election economic and fiscal update report.

“I introduced to Parliament a law that requires us to produce a pre-election economic and fiscal update report so that no government can go into an election hiding the true state of the economy and the fiscal situation,” she said.

Mottley noted that the latest report was dated January 27, 2026, and followed a similar report issued in January 2022.

The document includes all major policy decisions and fiscal circumstances, in accordance with the 2019 Public Financial Management Act, she said.

She also cited the declaration by Director of Finance and Economic Affairs Ian Carrington, confirming that the report was prepared using the ministry’s best professional judgement and includes all relevant information available at the time.

Referring to the report, Mottley said the government recorded a $148m fiscal surplus after seven months of the financial year.

She said that when the surplus first emerged, the administration exercised caution and did not change the tax structure, instead providing a $300 solidarity allowance to every Barbadian over 18, at a cost of more than $60m.

“Rather than do that again, we are now targeting our support,” she said.

Mottley added that since 2019, the government has returned funds to citizens through cash credits.

“In every year since 2019, we have managed the economy to give you back every cent that we told you you would get back,” she said.