Submitted by Kemar Stuart , People’s Coalition for Progress 

Brief Budget 2026-2027 Assessment 

The budget highlights the government’s continued stabilization of Barbados’ economy but not a transformation of the economy as the government attempts to avoid a most certain slippage into an official IMF program. Barbadian households remain under serious financial constraints as the government continues to record the highest consistent tax collection levels in the history of Barbados. The appointment of an Auditor General of Barbados is a key priority. Public funds need to be monitored. 

While indicating publicly that the government will be working closely with the IMF but not in an official program , questions surrounding a budgeted $109 Million loan for 2026-2027 from the IMF went unanswered.

In light of a brewing oil crisis, the expansion of overall public debt $15 Billion, the increase in interest repayments $1.5 Billion, further reliance on international financial institutions to finance government, increased tensions with the USA foreign policy, increased shipping costs ,  a migration of businesses out of Barbados with continued pressure on local small businesses. 

The Barbados economy continues to be still gridlocked with a wishful hope of renewable energy to be a cost saver as governments bold renewable energy policies are not meant to be foreign exchange earners but foreign exchange savers. Barbados maintains a Current Account deficit of -$1.2 billion built on a fragile tourism sector which exposed its extreme volatility when air traffic controllers went on strike causing massive disruption to the GAIA. 

The economy continues to be structurally weak as a heavy reliance on high taxation levels and controlled spending restricts government from spending in key areas domestically. The government continues to maintain record levels of revenue collection recording 4.8% primary surplus as majority of this surplus is from tax collection. 

What should be complimented is governments record attempt of capital investment of $810 Million into the economy however vital areas such Wage increases, tax cuts and large new social and economic programs for Barbadian livelihood advancement continue to remain stagnant. Job availability and opportunities remain limited, 

Lastly the budget completely neglected The Freedom of Movement initiative signed with four Caricom countries and it did not include any programs whatsoever to support its success. We can assume the plan was abandoned. The lack of transformative measures indicates that business continues as usual.