Prime Minister Philip J. Pierre took to Parliament on Tuesday to deliver his 2025/26 Budget Address, a people-centered presentation that read less like an economic report and more like a pledge to the citizens of Saint Lucia.
“Today, it was with a deep sense of honour and gratitude to the people of Saint Lucia, both here and abroad, that I stood to deliver the 2025/26 Budget Address,” Pierre said, delivering an address filled with tangible promises for workers, youth, the elderly, and the vulnerable.
From reducing period poverty to permanently employing contract workers, the Prime Minister unveiled a list of over two dozen initiatives, crafted to reflect the struggles and aspirations of ordinary Saint Lucians.
The biggest applause line was arguably the long-awaited regularisation of government workers. “All non-established government employees who are daily paid or classified as wage earners will be given permanent employment after two years. Over 1,900 workers on contract will benefit from this measure,” Pierre declared.
He also delivered long-sought-after relief for temporary teachers, announcing that they will now receive full salaries for the month of August—a month they had previously worked unpaid.
Pensioners were not forgotten. Beginning January 2025, income from pensions will be completely tax-free, and a one-time payment of $600 will be paid to all pensioners in November 2025. The National Insurance Corporation (NIC) will also increase pension payments to match the Consumer Price Index starting July 1st.
“We believe that after a lifetime of service, our elderly deserve not just respect—but financial relief and stability,” said Pierre.
In one of the most groundbreaking announcements, the Prime Minister tackled period poverty head-on. Starting September 2025, the Ministry of Education will receive $250,000 annually to purchase feminine hygiene products for students in secondary schools.
“No young girl should ever have to miss school or feel ashamed simply because of a natural part of life.”
On the education front, the government will now fund two additional CXC subjects, one of which must be in a science or foreign language—bringing the total to four subjects per student. Those who have left school within a year will also be eligible.
Pierre laid out a structured plan to boost the country’s nursing supply, with tiered tuition support of up to $10,000 for final-year students at Sir Arthur Lewis Community College.
In the realm of healthcare and welfare, he also announced the construction of a home for the elderly in Soufrière and the renovation of the National Archives, which will eventually be relocated to a new National Museum.
Meanwhile, with the cost of living in focus, the Finance Minister promised that cooking gas subsidies would continue, and the price of fuel will be capped at $16.00 per gallon until January 2026.
He also gave the green light to several key housing projects including the Rock Hall Housing Project, with construction to commence soon following planning approval in March.
The Talvern Condominium Housing Project, a $5 million investment, will kick off construction in June 2025, and the Soufrière Administrative Building will be constructed at the former town hall site.
In a nod to the future economy, Pierre introduced a $50,000 tax deduction for businesses investing in cybersecurity, AI tools, and approved ICT training for staff.
The current tax amnesty program will be extended to cover taxes due up to December 2023 and will now include penalties for late corporate filings. It will run until May 1st, 2026.
Effective June 1st, airport service charges for Caribbean travel will be cut in half through the end of the year—an effort to boost regional movement and tourism.
Major cultural projects were also highlighted:
Ramon Poleon Theatre in Belle Vue, with construction starting July 2025.
Anse La Raye Entertainment Centre renovation beginning in May 2025.
Completion of the George F.L. Charles Monument, cementing the legacy of the Labour Party’s founding father.
Effective January 2025, Saint Lucians will see increased deductions in several areas:
Child allowance: Up to $5,000 per child.
Dependent relatives: $5,000.
University education: $10,000.
Credit union savings and investments: $10,000.
Mortgage interest: Now up to $40,000.
Annual earnings below $25,000 will remain tax-free.
“This is not a budget of big speeches and empty promises. It’s a budget about people. About dignity. About doing what’s right, even when it’s not flashy,” Pierre told Parliament.
“We are a country, a collective of individuals with hopes, dreams, and yes, vulnerabilities—not a balance sheet or a corporation driven simply by profits,” he said.
