BVI premier unveils $407M Budget

British Virgin Islands Premier Dr Natalio Wheatley presented the territory’s 2024-2025 Budget in the National Assembly yesterday.

The theme of this year’s fiscal package was “Laying the Blocks of Success”, which the premier says builds on his 2024 Budget which was “Planning, Priorities and Progress.”

Wheatley, who is also the finance minister, expects the government to spend around US$407,931,923 over the next 12 months.

“My government remains committed to exercising fiscal discipline and financial prudence in the collection of revenue and delivery of the programmes identified in the budget. Madam Speaker, I am happy to report that we will maintain compliance with the borrowing limits or ratios in the Protocols for Effective Financial Management, which requires that Net Debt does not exceed 80 per cent of recurrent revenue, Debt Service does not exceed 10 per cent of recurrent revenue, and the value of our Liquid Assets does not fall below 25 per cent of recurrent expenditure,” Wheatley said.

Here are a few take away from the 2024-2025 Budget:

1. The 2024-2025 budget is set to be one of the most fiscally balanced in the BVI’s history as the premier said most of the revenue will be generated by taxes. The government expects to collect at least US$379,889,678 from taxes including Payroll Taxes, Property Tax, Taxes on Good and Services, and Taxes on International Trade.
2. The BVI’s Financial Services sector is set to grow. By the end of June 2024, there were 13,006 new incorporations, which is 25.7 per cent more than the same period in 2023. The premier said the trend is expected to continue and 2024 is set to outperform 2023 by 14.3 per cent.
3. Tourism is booming in BVI as Wheatley highlighted visitor numbers are exceeding projections. By the end of 2024, the premier anticipates that the tourism industry will result in US$445 million in revenue circulating in the economy. The territory’s room stock is expected to return to pre-2017 levels as the Peter Island Resort has returned to full service. A number of developments are also set to complete their expansion efforts in the coming months.  
4. In 2025, the Ministry of Education will continue its efforts to improve the safety and resilience of learning environments across the Territory. Planned improvements include upgrades to security systems, waterproofing, roof repairs, the replacement of outdated windows and doors, and the installation of backup generators. Upgrades to plumbing and air conditioning systems will also be completed to ensure reliable water access and climate control, creating more comfortable environments for students and teachers.
5. The Ministry of Health and Social Development has been allocated significant funding in the 2025 budget for various key projects across the Territory. A total of $1,193,600 will be directed towards waste management initiatives. The budget also includes $1 million for continued upgrades and reprogramming of space at the Dr D Orlando Smith Hospital, and $500,000 for improvements to the Iris O’Neal Clinic on Virgin Gorda.
6. The 2025 budget allocates a total of $35,099,300 to the Ministry of Communications and Works to support infrastructure development across the Territory. Key projects include $3.7 million for the National Sewerage Programme, $2.72 million for the Water Network Improvement Project, and $16.28 million earmarked for road infrastructure improvements.