By Robert Andre Emmanuel
Prime Minister and Minister of Finance Gaston Browne has confirmed that civil servants will receive their anticipated back pay this year, with the initial disbursements scheduled for December 18.
The announcement came during the 2025 Budget Presentation themed “Creating a Resilient, Harmonious and Prosperous Nation”.
According to the Prime Minister, Antigua and Barbuda has demonstrated economic resilience, projecting to achieve 6 percent real GDP growth in 2024, substantially exceeding the International Monetary Fund’s (IMF’s) global growth projection of 3.2 percent.
Addressing the Parliament, Browne detailed that preliminary estimates indicate approximately $100 million in retroactive payments due to eligible public sector workers.
“To avoid the accumulation of salary arrears in the future, we will engage in more timely negotiations with bargaining agents and implement the agreements as a matter of priority,” he said.
The government’s capacity to fulfil these obligations, according to the Prime Minister, stemmed from a robust fiscal management, evidenced by both primary and overall surpluses of approximately $20 million.
Most notably from the Prime Minister’s speech, the nation has achieved a significant reduction in its debt profile, with aggregate debt decreasing from $4.1 billion to $3.9 billion.
The administration has yielded improvements in debt sustainability, with the debt-to-GDP ratio decreasing from 75.3 percent to 62.3 percent, approaching the Eastern Caribbean Currency Union’s target of 60 percent well ahead of the 2035 deadline.
“Whereas significant progress has been made to reduce the debt to GDP ratio to 62 per cent, debt service remains challengingly high.
The Ministry of Finance will embark on additional strategies to further reduce the debt service ratio and create fiscal space to fund inclusive socio-economic development,” he said.
Addressing that debt management strategy, the PM Browne outlined to reporters after the speech some of the specific measures.
“Next year, we hope to float probably up to about 250 million U.S. dollars to take out some of those high interest loans so by virtue of having cheaper money that will create some additional fiscal space to fund social development,” he said.
According to Browne, negotiations are currently underway with several entities, which he did not disclose, he noted that “the prospects for this financial instrument are highly favourable”.
“We have proactively secured parliamentary approval through advanced legislation to facilitate this bond issuance once negotiations are concluded,” he added.
Prime Minister also noted substantial growth in key sectors, particularly construction, which contributed $900 million to the national economy in 2024 — representing one-third of the average economy among OECS independent states.
This sector’s performance, coupled with strategic tourism developments and infrastructure investments, has strengthened the nation’s fiscal position, the Prime Minister said.
Looking ahead to 2025, Browne announced a number of economic diversification strategies and resilience-building measures, including government savings bonds, shares in various public/private sector projects and crowd funding opportunities.
“This is to encourage citizens and residents to invest and generate wealth through investments with superior returns, compared to the current two percent interest rate on savings and fixed deposits.
“Our objective is to create opportunities for our people to earn a return on investment that exceeds the rate of inflation; to expand the domestic ownership class and to fuel sustainable robust economic growth and development,” he said.
He also emphasised that the achievements reflected in the Budget highlight the collective effort of Antiguans and Barbudans to position the nation in good economic standing.
However, the Prime Minister acknowledged potential external challenges, particularly regarding US policy changes during the second coming of the Trump administration.
Browne emphasised strategic preparedness: “We have to be very strategic and proactive in our thinking and the reason for that is that we are one of the smallest and most vulnerable countries on the planet. We can’t just be hapless victims of these trade wars.”
The Prime Minister concluded his Budget presentation with a call to collective action: “This Budget is more than a financial plan—it is a declaration of our vision and commitment to a prosperous, equitable, and harmonious Antigua and Barbuda,” he said. “Together, we can seize the opportunities this Budget provides to overcome obstacles and create a nation that thrives.”
