Prime Minister Dr. Terrance Drew has reaffirmed his government’s commitment to alleviating the economic burden on citizens amidst rising costs of essential goods and services. In a recent public appearance, Dr. Drew outlined several key initiatives, including the Budget Boost Wallet and a temporary reduction in Value Added Tax (VAT).
The Budget Boost Wallet, a strategic six-month programme, will provide $1,500.00 in direct support to qualified individuals earning less than $5,000.00 per month. This initiative extends relief to middle-class professionals, including teachers, nurses, and police officers, acknowledging their struggles amid the global economic downturn.
The funds, distributed monthly at $250.00, can be used for purchasing essential groceries, household goods, or paying utilities such as electricity and water. Payments can also be made to institutions like the National Housing Corporation (NHC). The programme is designed for individuals rather than households, meaning multiple qualified persons in a household can benefit independently.
Recipients will access the Budget Boost Wallet via a mobile app, allowing seamless transactions without the need for paper documentation. Participating businesses and utility providers will receive payments directly through this digital platform.
Additionally, for the first half of 2025, VAT will be reduced from 17% to 13%, a move aimed at easing financial pressures on households and businesses. The prime minister emphasised that this reduction will result in lower costs for everyday goods and services, directly increasing purchasing power across the country.
Dr. Drew highlighted his administration’s previous relief efforts, totalling $320 million across programmes such as LIFT, STEP, Elevate, and fuel subsidies. These initiatives have positioned St. Kitts and Nevis among the region’s leaders in economic support as a percentage of the national budget.
“We have provided relief to all people through multiple programmes. We have invested $320 million in support across different areas, whether it be LIFT, STEP, ELEVATE, fuel subsidies, or other support initiatives. In terms of percentage of the annual budget, I think our country probably ranks the highest in the region for direct support,” Prime Minister Drew said.
He also underscored ongoing investments in healthcare modernisation, agriculture, and climate resilience, emphasising the administration’s long-term vision for diversifying the economy and building a more sustainable future.
The World Bank is projecting global inflation to moderate in 2025, after inflation reached its highest level post-COVID-19 since 1981.
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