On Friday 7th March Hon. Denis Cornwall Minister of finance and MP for St. Patrick East presented a comprehensive budget for the fiscal year 2025, themed “Towards Vision 75: Grenada – Resilient and Rising,” highlighting a strategic focus on resilience and recovery following the devastation of Hurricane Beryl in July 2024 and the acceleration of the governments transformation agenda.

Total Budget Overview

Hon. Dennis Cornwall announced a total expenditure plan of EC$1.9 billion, which includes recurrent revenue of EC$1.2 billion and grants amounting to EC$72.5 million. Key figures from the budget include recurrent expenditure estimated at EC$1.1 billion and capital expenditure of EC$496.5 million. 

This budget reflects a commitment to fiscal responsibility, with a current account surplus of EC$86.5 million, albeit facing an overall deficit of EC$337.4 million.

Focus on Post-Disaster Recovery

In the aftermath of Hurricane Beryl, which caused damages totaling EC$630 million, the budget emphasizes rebuilding efforts aimed at restoring infrastructure and livelihoods. Minister Cornwall detailed that over EC$100 million has been allocated to distribute cash grants, provide building materials, and support business reactivation.

The government will also continue to utilize funds from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) to facilitate immediate post-disaster repairs and ongoing recovery initiatives.

Investments in Key Sectors

The budget sets ambitious targets for transformative agendas across multiple sectors, including healthcare, education, housing, and renewable energy. Notable initiatives include:

• Project Polaris: The establishment of a new state-of-the-art hospital with a Phase 1 allocation of EC$23.6 million aimed at enhancing healthcare services in the nation.
• Education: An unprecedented allocation of EC$183.4 million to revamp educational infrastructure, ensure free tuition up to the tertiary level along with a continuation of the Free Hot Meals Programme costing EC$5 million.
• Housing Solutions: The budget addresses the housing deficit exacerbated by Hurricane Beryl, with plans for the construction of 500 new homes through Project 500, reinforced by EC$10 million in the budget.
• Renewable Energy Transition: Significant investments targeting solar, geothermal, and wind energy projects are aimed at diversifying the energy mix and enhancing sustainability goals.

Social Interventions and Community Development

With a strong focus on social welfare, the government allocated EC$85.1 million toward social and community development, emphasizing support for vulnerable populations. 

Initiatives such as the continuation of the SEED Programme and the provision of comprehensive public transportation subsidies are also set to alleviate the cost of living pressures faced by Grenadians.

Economic Outlook and Future Projections

The 2025 economic outlook appears optimistic with a projected real GDP growth rate of 4.1%, buoyed by the recovery of the tourism sector and reconstruction efforts. The budget maintains fiscal discipline, with plans for prudent economic management and maintaining a wage bill ceiling of 13% of GDP.

In his concluding remarks, Minister Cornwall reaffirmed the government’s commitment to serving the people of Grenada and fostering a vision of resilience and inclusive growth. 

“Let us unite. Let us build. Let us rise!” he urged, inspiring hope for the future of Grenada, Carriacou and Petite Martinique.

As stakeholders and citizens look forward to the implementation of this comprehensive budget, the focus remains on a resilient and rising Grenada, committed to overcoming challenges and capitalizing on opportunities for development.