With the war in the Middle East triggering higher oil prices and concerns about overall increased costs, it is unlikely to be business as usual when Minister of Finance Ryan Straughn delivers the Budgetary Proposals and Financial Statement today.
Straughn has been meeting with representatives from the business community, trade unions and other interest groups ahead of his 4 p.m. presentation in the House of Assembly, and these parties will find out if any of their various wish lists made it into the Budget.
Last year, when the economist outlined Government’s fiscal policies, he was Prime Minister and Minister of Finance Mia Amor Mottley’s substitute. This time he will speak as substantive holder of the office which manages the public purse.
In a post on social media last week, Straughn shared that he held discussions with various parties, calling the conversations “an important part of the work behind the Budget”.
“In the days leading up to Monday, I’ve been meeting with leaders and organisations from across the country – from the financial and business community to labour organisations, credit unions, transportation operators, insurance providers, health advocacy groups, and organisations representing retirees, to name a few,” the minister said.
“Bringing these perspectives together allows ideas, experiences, and insight from across our society to help guide the work that goes into preparing the Budget.
Conversations
“On Monday, the vision comes into focus and the country will hear what these conversations have helped shape.”
One of the pre-Budget meetings involved organisations under the Barbados Private Sector Association umbrella.
Those represented included the Barbados Chamber of Commerce and Industry, Institute of Chartered Accountants of Barbados, BIBA, the Association for Global Business, the Barbados Bankers Association, and Barbados Employers’ Confederation.
The Barbados Hotel and Tourism Association, Small Business Association, Barbados Agricultural Society, Barbados Coalition of Service Industries, and Barbados Manufacturers’ Association also participated in the talks.
Straughn also heard from the General Insurance Association of Barbados, Congress of Trade Unions and Staff Associations of Barbados, and Barbados Assocation of Retired Persons.
The 2025 Budget, which was delivered on March 10, focused on four main areas – resilience, growth enhancement, revenue efficiency and improving the well-being of Bajans.
Straughn said it was “a roadmap for sustained efforts to protect and empower our people, to build a stronger social fabric, to care for the vulnerable, to lift people out of poverty and strengthen our middle class, while constructing a strong, sustainable, resilient economy in which our labour force is innovative and productive”.
“This roadmap continues Government’s objective of national and economic resilience predicated on digitisation to deliver sustainable, resilient, inclusive growth. It also empowers ordinary Bajans and those who choose to live here, thereby improving the social fabric and general cohesion of this society,” he added.
This year’s Budget comes against the backdrop of 18 quarters of economic growth as reported by the Central Bank of Barbados and predictions of a continued expansion in real gross domestic product by both the Central Bank and the Ministry of Finance.
The presentation will also be made as Government implements the third Barbados Economic Recovery and Transformation programme, the first since Barbados concluded its second consecutive programme with the International Monetary Fund.
It also comes, however, as military conflict involving the United States, Israel and Iran continues in the Middle East, with possible ramifications for the world economy.
This means that measures to continue giving consumers a cost of living ease are likely to be high in the expectations of Barbadian households.
Straughn reminded in last year’s Budget that, since 2022, Government “has introduced several measures in an attempt to curtail the cost of living for its citizens in response to significant rises in costs globally”.
With Barbados Light & Power Company Limited warning its customers to brace for higher electricity bills linked to increased oil prices, Straughn will have to indicate if the reduction of value added tax (VAT) from 17.5 per cent to 7.5 per cent on the first 250 kilowatt-hours of electricity consumed by households will be extended beyond March 31.
Another cost of living measure was the VAT on gasoline and diesel being capped at 47 cents and 37 cents per litre, respectively. Straughn said last year that if international oil prices increased above US$80 a barrel, the cap would again be applied.
International reports yesterday indicated that international prices were past the US$103 a barrel mark.
Following conversations with Straughn as he prepared to finalise the Budget, the private sector will be hoping for measures to support investment, reduce operational costs, and improve business facilitation. (SC)
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