St. Kitts and Nevis’ Financial Secretary, Mr. Carlton Pogson, has outlined a measured yet ambitious fiscal vision for the Federation as the Government prepares its 2026 Budget under the theme “Turning Conversations into Action: Building a Sustainable Island State Together.”
Speaking during the National Budget Forum, on Wednesday, Secretary Pogson described Budget 2026 as more than a financial plan — characterising it as “one of the engines driving our national priorities forward.” He said the new budget will reflect both the Government’s fiscal discipline and its social investment priorities, striking a balance essential for long-term sustainability.
“Our fiscal strategy must not only reflect the numbers but the national ambition to become a Sustainable Island State,” Pogson said. “It must deliver measurable change in the lives of our people — better schools, stronger healthcare, safer communities, and more inclusive economic opportunities.”
He projected that the economy of St. Kitts and Nevis will grow by 1.1 percent by the end of fiscal year 2025, signalling a return to pre-pandemic stability. Inflation, he noted, has declined sharply from 2.7 percent and 3.6 percent in 2022 and 2023 respectively, to 1 percent in 2024 and just 0.6 percent up to August 2025. Looking ahead, the medium-term outlook remains optimistic. Between 2026 and 2030, the Federation’s economy is forecast to grow by an average of 2.5 percent annually, with GDP expected to reach $2.7 billion by the end of the decade.
“This growth will be broad-based,” he explained. “From agriculture to construction, tourism, financial services and the public sector — each will have a role in sustaining our economic momentum.”
According to the Financial Secretary, the construction sector, which accounts for roughly 30.5 percent of GDP, will continue to be the largest contributor to growth, expanding at about 2.3 percent annually through public and private infrastructure projects. The agriculture and fisheries sector, though currently small at 1.2 percent of GDP, is projected to grow by 6.8 percent annually, driven by investments in food security and strategic linkages with tourism. Meanwhile, the hotel and restaurant sector is expected to expand by 2 percent per year, supported by improved airlift and targeted international marketing campaigns. Other service industries, such as financial services, transportation, real estate, and public administration, are also expected to make significant contributions to overall national growth.
Addressing a key question often raised during consultations — whether fiscal discipline and social investment can coexist — Pogson responded emphatically: “These are not competing objectives; they are complementary imperatives. Fiscal discipline ensures stability and credibility. Social investment ensures equity and opportunity.” He added that the 2026 Budget would continue to enforce prudent expenditure management while channelling resources into education, healthcare, housing, and climate resilience, describing these as “the building blocks of a strong and inclusive society.”
The Financial Secretary emphasised that the budget belongs to the people, highlighting the recent national consultations hosted by the Ministry of Finance on both sides of the island. “To everyone who shared ideas and raised concerns — thank you,” he said. “Your input helps to shape the priorities that will be reflected in Budget 2026. Governance begins with listening, and through these consultations, we are affirming our commitment to inclusivity and transparency.”
He urged continued engagement from citizens, business leaders, and community stakeholders, stressing that progress is not powered by policy alone, but by people — their ideas, energy, and belief in a better future.
Closing his presentation, the Pogson reaffirmed the Government’s commitment to aligning fiscal planning with the seven pillars of the Sustainable Island State Agenda, calling on all sectors to see themselves as partners in the process.
“Budget 2026 must be our collective roadmap,” he concluded. “It is how we turn vision into action, and action into impact. Together, we are building a nation that is resilient, innovative, inclusive, and sustainable.”
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