Montserrat’s 2026/27 Budget Set at $345.95M

The Government of Montserrat is moving toward approval of its 2026/27 Budget Estimates, following the presentation by Premier and Minister of Finance Reuben T. Meade on Monday, April 20 in the Legislative Assembly.

The budget totals EC$345.95 million, covering both recurrent and capital expenditure for the upcoming fiscal year, an $8 million decrease from the previous year.

Premier Meade told the House that the budget is framed under the theme “Economic Restoration and Transformation with Social Empowerment,” and is being delivered amid global economic uncertainty.

“Conflicts in key regions, disruptions to major shipping routes, and the persistence of elevated tariffs have created ripple effects that reach small, open economies like Montserrat, influencing the cost of imports, fuel prices, and the stability of tourism and remittance flows,” he said.

Overall Spending and Economic Outlook

The Estimates reflect a slight reduction from the previous year’s $354.5 million, indicating a tightening in overall expenditure.

Despite this, the Premier projected economic growth of 3 per cent in 2026, driven by activity in public services, construction, real estate, and financial services.

“The economy is projected to grow by 3 per cent in 2026, underpinned by strong performance across public services, real estate, construction, and financial services,” Meade stated.

He added that the budget is intended to support long-term national development:
“This budget allows us to continue working towards that vision of a restored rebuilt Montserrat that in years ahead will not survive only because of budgetary support.”

Capital Investment Programme

Capital expenditure for 2026/27 is set at approximately $162.2 million, accounting for just under half of the total budget.

Funding is concentrated in the following areas:

• Social infrastructure: $97.69 million (60.07%)
• Economic infrastructure: $55.24 million (33.97%)
• Statistical research and other programmes: $8.52 million (5.24%)
• Agriculture: $0.96 million (0.59%)
• Public administration: $0.21 million (0.13%)

The capital programme will be financed largely through external partners, including:

• UK Government/FCDO: $101.86 million (62.64%)
• European Union: $39.57 million (24.51%)
• Caribbean Development Bank: $20.02 million (12.31%)
• Other sources: $0.88 million (0.54%)

Projects will include ongoing initiatives under the Capital Investment Programme for Resilient Economic Growth (CIPREG), along with EU, CDB, and other donor-funded programmes.

Recurrent Spending and Ministry Allocations

Recurrent expenditure of $183.3 million will fund salaries, wages, and operational costs across government.

Among the largest allocations in the Estimates:

• Ministry of Health and Social Services: $96.82 million, up significantly from the previous year
• Ministry of Finance and Economic Management: $75.2 million, down sharply from $106.9 million
• Ministry of Buildings, Utilities, Infrastructure, Labour and Transportation: $65.48 million, an increase from $53.0 million
• Office of the Deputy Governor: $44.8 million, up from $42.6 million

Other changes include reductions in the Office of the Premier and the Cabinet Secretariat, while modest increases are recorded for policing, legal services, and digital transformation.

Next Steps

Debate on the Budget Estimates begins today, Tuesday April 21 in the Legislative Assembly, after which the figures will move to the Committee stage for detailed examination before final approval.

Once passed, the Appropriation Act will authorise government spending for the 2026/27 fiscal year and guide public sector operations and development activity across Montserrat.

Read the full Budget Speech here.

Watch the presentation below