Budget offers stability but little transformation, says Stuart

The Budget offers economic stabilisation but fails to deliver the deep reforms needed to ease the financial strain on households and businesses, according to Kemar Stuart, leader of the People’s Coalition for Progress.  

 

In his assessment, Stuart argued that while the government appears focused on avoiding a return to a formal International Monetary Fund (IMF) programme, many of the structural issues facing the economy remain unresolved.  

 

“The budget highlights the government’s continued stabilisation of Barbados’ economy, but not a transformation,” he said, adding that households are still under “serious financial constraints” despite what he described as record levels of tax collection.  

 

He raised concerns about fiscal transparency and oversight, identifying the appointment of an Auditor General as a priority.  

 

“Public funds need to be monitored,” Stuart stressed.  

 

The coalition also questioned aspects of the government’s engagement with international lenders, pointing to what it described as unanswered questions surrounding a projected US$109 million loan from the IMF in the upcoming financial year.  

 

Stuart’s critique extended to the broader economic environment, warning of mounting pressures including rising public debt, increasing interest payments and continued reliance on external financing.  

 

“In light of a brewing oil crisis, the expansion of overall public debt to $15bn and interest repayments of $1.5bn, there is continued reliance on international financial institutions,” he said, also referencing higher shipping costs, tensions in global trade and the strain on local businesses.  

 

He further argued that the economy remains “structurally weak”, citing a heavy dependence on taxation and controlled spending which, in his view, limits the government’s ability to invest meaningfully in domestic growth.  

 

“The government continues to maintain record levels of revenue collection… largely from taxation,” he said, noting a primary surplus of 4.8 per cent.  

 

While acknowledging some positives, Stuart pointed to the planned $810m in capital investment as a notable effort to stimulate economic activity.  

 

“What should be complimented is government’s record attempt of capital investment… however, vital areas such as wage increases, tax cuts and large new social and economic programmes… remain stagnant,” he added, warning that job opportunities continue to lag.  

 

He further flagged what he described as a significant omission in the budget — the absence of any clear plan to support the CARICOM free movement initiative.  

 

“The budget completely neglected the Freedom of Movement initiative… and did not include any programmes whatsoever to support its success,” Stuart said. “We can assume the plan was abandoned.”  

 

Despite ongoing efforts at fiscal management, Stuart concluded that the budget reflects “business as usual”, with limited evidence of the kind of structural change needed to reposition the Barbadian economy for long-term resilience.

(SM)