Prime Minister Dr. Terrance Drew has announced that civil servants and other government employees will receive a Christmas bonus, commonly known as double salary, marking the first time in St. Kitts and Nevis’ history that such a payment is being issued in the same year as a government-implemented salary increase. The announcement is widely seen as a decisive rebuttal to critics who insisted that the Government would be unable to deliver both commitments in 2025.
“I am pleased to announce an extra payment of one month salary, commonly called the double salary,” said Prime Minister Drew. “This payment will be issued on Friday, 19th December, 2025,” he continued, adding that the hard work of government workers will be rewarded.
The additional payment will extend to civil servants, government auxiliary workers, pensioners, and individuals employed under the STEP Programme. He emphasised that the decision reflects the Government’s commitment to ensuring that those who contribute to the country’s progress each day share directly in the benefits of national stability.
The Prime Minister made the disclosure during the presentation of the 2026 Budget, outlining a national spending plan focused on stabilisation, continued investment in people, and structural reforms to strengthen the country’s long-term fiscal position. The bonus, he said, reflects the administration’s pledge to shield everyday citizens as global inflation, supply chain pressures, and shifting revenue patterns affect small island economies.
Dr. Drew further confirmed that members of the Cabinet and government advisors will not receive the bonus. The gesture, he stated, was a timely symbol of responsible leadership and shared sacrifice, reinforcing that austerity must begin at the top while ensuring that workers are not deprived.
The 2026 Budget, totalling EC $1.074 billion, positions the coming year as one of consolidation following revenue shortfalls in 2025. While recurrent expenditure is projected at EC $879.8 million, capital spending is set at EC $167.2 million, reflecting a tightened but still development-focused approach. Revenue and grants are estimated at EC $894.8 million, with real GDP growth forecast at 2.8 percent, supported by construction, tourism, public administration, and services.
Despite the deficit carried over from 2025, the Prime Minister made it clear that the 2026 Budget introduces no new taxes. Instead, the Government is prioritising stronger compliance and the recovery of arrears already owed to the Treasury. Dr. Drew underscored that “tax compliance is not a technicality — it is the lifeblood that sustains our schools, hospitals, roads and social programmes,” adding that in 2026 the Government’s “primary focus will be to collect outstanding tax arrears and to close the gaps that permit the build-up of arrears, avoidance and outright evasion.” He affirmed that the Administration “has decided not to engage in tinkering at the edges of the tax system,” choosing instead to modernise it and ensure fairness without imposing additional burdens on citizens.
Significant allocations were announced for key ministries central to the Government’s Sustainable Island State Agenda. The Ministries of Health, Education, National Security, and Public Infrastructure all received substantial resources to advance ongoing works such as school reconstruction, hospital expansion, security modernisation, road and water upgrades, and renewable energy integration. The Prime Minister also highlighted the introduction of a new Consumer Price Index in early 2026, a major improvement intended to better measure inflation and guide future policy.
Agriculture, food security, climate resilience, and human capital development remain core pillars throughout the Budget, alongside structural reforms in tax administration and revenue compliance. These shifts are expected to reduce reliance on volatile income sources while improving the predictability of national revenue.
Public financial management reforms, stricter debt policies, and a renewed emphasis on transparency form part of the broader fiscal strategy. The Prime Minister noted that borrowing will be limited to transformational projects, maintaining the debt-to-GDP ratio under the 60 percent ECCU threshold and charting a gradual downward trajectory after 2026.
The dual announcement of salary increases and a Christmas bonus stands as one of the most talked-about outcomes of this year’s Budget. It is expected to inject millions into the local economy at the height of the festive season, offering relief to households and stimulating retail and service sectors. For many workers, it also symbolises a reaffirmation that, even amid fiscal tightening, the wellbeing of the population remains centred in national planning.
As the country prepares for 2026, the Budget reflects a continued balancing act: protecting citizens, managing risks, and pushing forward with the structural transformation required to keep St. Kitts and Nevis economically competitive, socially resilient, and fiscally secure.
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