BASSETERRE, St. Kitts, December 17, 2024 (SKNIS) – During his 2025 Budget Address on December 16, 2024, Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew, detailed the extraordinary lengths his administration took, and the financial sacrifices it continues to incur in order to shield the people of St. Kitts and Nevis from the rising cost of living, brought on by global inflation.
Prime Minister Dr. Drew revealed that a total of $320 million was invested in essential subsidies and social programmes over the past two years to protect citizens from the full impact of inflation, while providing a foundation for self-reliance and growth.
“Madam Speaker, $320 million to protect our people is nothing to sneeze at for a small country like ours,” the prime minister said.
In its efforts to protect the citizenry, the government carried the burden of exorbitant electricity subsidies. He noted that $63.5 million was spent to support the St. Kitts Electricity Company, with $54.8 million specifically allocated to subsidising the fuel variation charge (FVC).
In addition, the government absorbed subsidies totalling $8.6 million for fuel at the pump and $12 million for liquefied petroleum gas (LPG) commonly referred to as cooking gas, to prevent price hikes.
“Beyond these critical interventions, we have maintained one of the most robust social safety net systems in our history. Madam Speaker, all this is protecting our people,” said Dr. Drew.
The Prime Minister highlighted several social interventions, including the Livelihood Improvement for Family Transformation (LIFT) Programme, the Skills Training Empowerment Programme (STEP), and the Elevate Programme, all of which have required significant financial investment from the government.
“So over the past year, we carried an extraordinary financial burden. These efforts came at a significant cost to the government, Madam Speaker, but they represent a resolute investment in the well-being of our citizens,” Prime Minister Drew said.
Recognising the continued hardship faced by its citizens, the government also made the deliberate decision to sustain the COVID-19 relief measures at a significant cost to the government.