GOVERNMENT ABSORBS MILLIONS IN COSTS TO SHIELD CITIZENS FROM ECONOMIC PRESSURES

Basseterre, Saint Kitts, November 06, 2026 (SKNIS): Despite mounting global economic pressures arising from ongoing wars, supply chain disruptions and other international challenges, the Government of Saint Kitts and Nevis remains committed to protecting citizens and easing the financial burden on households.

Speaking during the November 05, 2026  edition of the Roundtable, Prime Minister and Minister of Finance, the Honourable Dr. Terrance Drew, emphasised that his administration has chosen to confront these challenges by creating opportunities and implementing measures to ensure that ordinary citizens are not left to shoulder the full weight of economic hardship.

“Sometimes the government has to absorb the lash to protect our people,” Dr. Drew said, using the analogy of a mother hen protecting her chicks to explain the government’s responsibility to shield citizens from external economic pressures.

The prime minister highlighted several interventions aimed at increasing disposable income, including an eight (8) per cent salary increase for civil servants and the provision of an additional month’s salary annually from 2022 through 2025. He also pointed to two increases in the national minimum wage, bringing earnings to at least EC$500 weekly for workers completing a 40-hour week.

In 2025, the government provided EC$36.6 million in direct assistance to approximately 23,000 beneficiaries through its Budget Boost Wallet initiative, allowing recipients to meet essential expenses, including utility bills and basic food purchases. Additionally, the standard VAT rate was temporarily reduced from 17 per cent to 13 per cent during the first six months of that year.

Another significant intervention has been the provision of more than EC$80 million in electricity subsidies by June 2026, to cushion consumers against rising energy costs.

Acknowledging that these interventions require difficult decisions and substantial financial commitments, Dr. Drew maintained that protecting citizens must remain the government’s priority.

“Even though things are challenging, we never left our people behind,” he said.

The prime minister reiterated that responsible leadership requires the government to step in when economic pressures threaten the well-being of its citizens, rather than allow families and businesses to bear the full burden alone.

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