Government’s Budget, setting out the Estimates of Expenditure and Revenue for the financial year 2026-2027, was today laid in Parliament, together with a projected forecast for the current financial year 2025-2026. These will form the basis of the Parliamentary Debate to ensue from March 02, 2026 on the Appropriation Bill, 2026.

Revised Fiscal Balance 2025-2026

On the cash basis current revenue of $3,856.0 million is expected, of which $3,663.4 million is tax revenue and $192.6 million is non-tax revenue and grant income.  Total expenditure is projected to be $3,939.8 million, exclusive of amortization, of which $3,419.0 million is current expenditure and $520.8 million is capital expenditure.  The revised deficit of $83.8 million, on the IFI basis, represents -0.5% of GDP at market prices, estimated at $16,242.8 million. The primary surplus for the financial year 2025-2026 is estimated to be $658.4 million or 4.1% of GDP on the cash basis.

Overview 2026-2027

On the accrual basis, current revenue for the next fiscal year is projected at $5,275.9 million.  On the cash basis, current revenue is projected at $5,179.0 million, an increase of $1,323.0 million or 34.3% over the revised 2025-2026 level of $3,856.0 million.

It is estimated that Government’s total expenditure for the financial year 2026-2027, on the accrual basis, will be $6,138.6 million (inclusive of amortization).  Of the amount approved for the 2026-2027 financial year, $5,164.8 million represents current expenditure and $973.8 million represents capital expenditure and amortisation.

When converted to the cash basis, total expenditure is expected to be $5,075.5 million, exclusive of amortization, with current expenditure of $4,185.7 million and capital expenditure of $889.8 million. Current expenditure is above the revised 2025-2026 figure of $3,419.0 million by $766.7 million.

Expenditure on goods and services is expected to increase by $376.2 million  over the revised figure for 2025-2026 of $590.5 million to $966.7 million.  Current transfers are projected to increase by $368.4 million or 32% to $1,520.1 million.

The repayment of principal and interest on Government’s debt is expected to account for $1,495.9 million.

The primary balance is projected to be a surplus of $817.5 million, representing 4.8% of GDP (estimated at $17,064.7 million) on the cash basis.

The Estimates for the 2026-2027 fiscal year include provision for the following:

• (i) A current subvention of $182.2 million is being provided to the Queen Elizabeth Hospital for its operations.

• (ii) An amount of $121.5 million is being provided for the Social Empowerment Agency

• (iii) The National Housing Corporation has been allocated the sum of $13.3 million;

• (iv) An amount of $23.0 million has been provided for the Smart Energy Fund;

• (v) An amount of $52.2 million has been provided for the Barbados Republic Child Wealth Fund;

• (vi) subvention of $242.0 million has been allocated o the Barbados Water Authority for capital projects;

• (vii) Barbados Defence Force has been allocated $116 million to carry out its operations;

• (viii) An amount of $56M has been provided for the Resilience and Regeneration Fund;

• (ix) An amount of $78.4 million has been provided for Special Needs grant, Pensioners and Welfare recipients;

• (x) An amount of $75.0 million has been provided for the capitalization of the Economic Diversification Growth Fund; and

• (xi) An amount of $20.0 million has been provided for the capitalization of the Blue Green Bank. (PR)