CMC-The Grenada Government Wednesday announced that it would not be presenting the 2025 national budget this year but would do so in either January or February next year.
Prime Minister Dickon Mitchell, speaking at a news conference, where he also announced a pension plan for public sector workers, said that the decision to postpone the fiscal package is a result of the significant disruptions caused by Hurricane Beryl when it passed through the country on July 1 this year as well as recent fiscal developments.
The hurricane left widespread damage, overwhelming local infrastructure and demanding a substantial portion of the government’s resources for recovery efforts.
Earlier this month, the International Monetary Fund (IMF) said Grenada had suffered substantial losses and damage as a result of the passage of the hurricane.
The Washington-based financial institution said that while the full estimate of the damages and losses is yet to be completed, the initial estimates suggest that physical damages alone exceed 16 per cent of gross domestic product.
“First of all, we’ve had a significant disruption caused by Hurricane Beryl. We only recently passed the supplemental budget, which also includes addressing the damage caused by Beryl. We’ve had to take several actions, including suspending some parts of the Fiscal Management and Resilience Act,” Mitchell told reporters.
He acknowledged that the hurricane’s impact has forced the Government to adopt several extraordinary fiscal measures, including invoking clauses in Grenada’s debt agreements requesting the suspension of debt payments, allowing the country to redirect funds towards rebuilding and recovery.
Mitchell said that the government says it will use the additional time to engage in broader consultations with stakeholders and citizens, ensuring that the final budget reflects the nation’s most pressing needs and long-term goals.
“We believe it will give us more opportunity to have deeper, more meaningful, and more extensive engagement with our citizens and stakeholders as we prepare the budget,” Mitchell said.
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