By Shawn Cumberbatch
Copyright nationnews
Government’s wages and salaries bill has increased.
The Ministry of Finance stated in the Barbados Fiscal Framework 2026/2027 to 2028/2029 that this category of expenditure increased by $33 million in the 2024/2025 period ended March 31 and is forecast to grow by another $36 million in the current financial year.
“Wages and salaries rose by $33 million, exceeding projections by $27.7 million due to the final tranche of a salary settlement,” noted the Fiscal Framework which was laid in the House of Assembly on Tuesday.
Looking ahead, it stated at wages and salaries for fiscal year 2025/26 “have been revised upward to account for the hiring of additional personnel within the Office of the Attorney General, including special constables for enhanced police services”.
“Increases are also anticipated for the Ministry of Health and the Ministry of Education. Thereafter, growth will align with legislated incremental salary growth and allowances.”
Total expenditure
The $33 million increase in wages and salaries during 2024/2025 was part of total expenditure of $4.08 billion in that fiscal year.
This was $476.3 million above the previous year and $309.1 million over projections. The report revealed it “was driven by capital investment in public services, including the Geriatric Hospital, new school sites, garbage trucks, health centres and roadworks”.
It said that goods and services expenditures “increased by $76.4 million, largely due to climate mitigation efforts and ICC (International Cricket Council) World Cup- related costs, though still $48.5 million below initial estimates.
“Capital expenditure grew by $273.2 million, driven by ongoing projects like the Geriatric Hospital, land procurement for new schools, the acquisition of garbage trucks, the digital innovation hub,
the Amphitheatre and continued roadworks.”
Goods and services
The Fiscal Framework said that for 2025/2026, “goods and services forecasts have been revised upward to accommodate climate mitigation initiatives and other budgetary proposals”.
“Allocations have been increased for initiatives such as the Skills For The Future Project, the One Family Programme, Mission Transformation and the Alternative Care Of The Elderly Programme. Over the medium term the provision of Government goods and services is expected to grow nominally,” it said.
The report said that on the revenue side, Government’s earnings “exceeded expectations at the end of fiscal year 2024/25”.
“Total revenue surged by approximately $577.8 million over the previous year, exceeding projections by $412.4 million. This was primarily due to the robust performance of corporate taxes, which alone contributed $1.03 billion, an increase of $463.5 million year-on-year and $360.1 million over target.”
It added that “building on the strong fiscal performance of fiscal year 2024/25, total revenue forecasts for the medium term have been revised up from initial estimates”.
“This is primarily due to the improved corporation tax forecast given the out-turn at the end of fiscal year 2024/25, adjusted for outlier revenues identified during the year. Simultaneously, forecasts related to personal income tax, excise duties and value added tax were moderated,” the Fiscal Framework stated.
