2026 Budget Address
Table of Contents
Title
2026 Budget Summary
Total Budget
$550.6M
Largest budget in VI history
Projected Revenue
$446.0M
Financial services, tourism & core taxes
Recurrent Expenditure
$442.3M
Salaries, operations & public services
Capital Expenditure
$80.0M
Infrastructure & development projects
Debt Servicing
$20.8M
Loan repayments & refinancing
Capital Financing
$79.0M
Loans, Consolidated & Development Funds
Title
2025 Performance Highlights
Performance in 2025 reflects continued recovery and consolidation across key sectors, with growth in financial services, tourism, and steady fiscal management.
Economic Performance
- 2024 real GDP grew by 3.3%, driven by tourism, financial services, and real estate.
- 2025 growth moderated as inflation eased, though food and services prices continued to affect vulnerable households.
Financial Services
- New incorporations reached 19,373 by August 2025, a 7.6% increase over 2024.
- Projected financial services revenue for 2025 is approximately $263.62M.
Tourism
- 2024 arrivals exceeded 1.1 million, the second highest on record.
First three quarters of 2025:
- Total visitors: 837,216
- Cruise visitors: 580,575
- Day trippers: 18,539
- Overnight visitors: 238,102
Fiscal Performance
- 2024 total revenue: $414.61M, about 6.9% above the original budget.
- 2025 revenue is projected at approximately $425.44M.
Infrastructure & Utilities
- Progress on sewerage systems, including East End/Long Look and Road Town.
- Water network upgrades, reservoir rehabilitation, and replacement of aging mains.
- Road upgrades across multiple communities to improve safety and connectivity.
Health, Education & Social Protection
- Upgrades at Dr. D. Orlando Smith Hospital, Nurse Iris O’Neal Clinic, and community health facilities.
- Completion of the Eslyn Henley Richiez Learning Centre and planning for a new Althea Scatliffe Primary School and a technical/vocational secondary school.
- Modernisation of social protection through a new Social Protection Policy and updated public assistance framework.
Environment & Governance
- Advancement of climate and environmental policies, including marine management and Blue Belt initiatives.
- Progress on governance reforms, resulting in the withdrawal of the Order in Council risk and strengthening of public administration.
Title
2026 Economic Outlook
The 2026 outlook anticipates stable growth, with continued strength in financial services and tourism, supported by targeted public investment and reforms.
Growth
Real GDP growth is projected at approximately 1.0% in 2026, reflecting ongoing recovery and investment.
Revenue & Tourism
- Projected Government revenue: $462.30M.
- Visitor arrivals targeted at approximately 1.19 million, a 5.9% increase over 2025.
Financial Services
- Further implementation of Basel II and strengthening of regulatory frameworks.
- Enhanced use of technology and AI for supervision and AML/CFT compliance.
- Deeper promotion in Asia and Latin America, and development of digital asset and fintech opportunities.
Inflation & Resilience
The Government will continue to build fiscal buffers, manage inflationary pressures, and invest in climate-resilient infrastructure, including water, roads, ports, and renewable energy, to protect livelihoods and maintain competitiveness.
Title
Key 2026 Initiatives
The 2026 Budget prioritises initiatives that drive economic growth, strengthen infrastructure, support social development, and enhance governance and resilience.
Economy & Jobs
- Introduction of a revised Investment Act to attract and support both local and foreign investment.
- Implementation of a trade and economic development plan to foster private sector innovation and productivity.
- Expanded skills training and employment programmes in tourism, agriculture, marine industries, and technical trades.
- Advancement of a Financial Services Strategy Roadmap to guide growth, innovation, and competitiveness.
Infrastructure & Utilities
- Progress on the Terrance B. Lettsome International Airport expansion, including a proposed 7,000 ft runway.
- Continuation of East End Sewer System Phase 2 and upgrades in Road Town and Cane Garden Bay.
- Water and Sewerage Modernisation Programme, including pipe replacement, reservoir upgrades, and smart metering.
- Deployment of solar farms and rooftop solar on public buildings and community facilities through the STEP renewable energy initiative.
Agriculture, Fisheries & Blue/Green Economy
- Development of the Virgin Islands Agricultural Complex to strengthen food security and local production.
- Hydroponics pilot project on Virgin Gorda.
- Construction of a fishing complex at Omar Hodge Fisherman’s Wharf in Baugher’s Bay.
- Advancement of East End/Long Look Harbour redevelopment and the Road Town Master Plan as twin commercial centres.
Social Sectors – Health, Education, Youth & Culture
- Continued upgrades to health facilities and strengthening of governance at the BVI Health Services Authority.
- Plans for a new technical/vocational secondary school and expansion of H. Lavity Stoutt Community College, including student accommodation.
- Promotion and preservation of culture through restoration of heritage sites, festivals, and arts programmes.
Environment, Climate & Governance
- Operationalisation of the Climate Change Trust Fund.
- Strengthening of Statutory Board governance through new legislation and oversight mechanisms.
- Implementation of the Governance Reform Transition Plan and transition of the Recovery and Development Agency (RDA) into VIDA.
- Continued investment in digital government, records management, and customer-focused public service improvements.
Contact Information
Ministry of Finance -
Rita Frett Georges Building
Road Town, Tortola
Virgin Islands (British) VG1110
Tel: 284 468- 2144
Email: finance@gov.vg