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Budget Shows Strong Economic Growth & Recurrent Surplus Even In Election Year
posted (May 12, 2025)
The revenue and appropriations bill, it's the expression of the most fundamental duty of parliament: deciding how the people's money will be collected for and spent from the Consolidated Revenue Fund.

That is made flesh in the annual budget presentation - which is usually presented before the start of the fiscal year on April first, but was delayed this year due to the March general election.

But, in his second major speech before parliament in as many working days, the Prime Minister said the presentation may be later than usual - but it's not lacking or lackluster. Here are the highlites:

In his fifth budget presentation, titled "From Promise to Performance" Prime Minister Briceno seemed at ease - and he had the numbers to back him up:

John Briceno, Prime Minister
"In 2024, according to the recently published IMF data. The IMF, not us. Belize had the highest GDP growth rate in the Western Hemisphere at 8.2%. Second only to the oil exporting nation of Guyana."

"97 out of every 100 Belizeans who seek work are now working. The government has achieved a primary budget surplus each year whilst we have been in office. The minimum wage was raised for all workers by almost 50% to $5 per hour, which affected thousands of workers. And foreign direct investment has totaled $1.12 billion over the past four year period."

And with that strong tailwind behind him, the PM laid out a budget that spoke to sound fiscal stewardship and strong tax collection, even in an election year:

John Briceno, Prime Minister
"It is important to point out that previous administrations, almost without exception, overspent in the period leading to an election."

"Politicians spend and borrow to win elections. This administration defied that norm. Overall, recurrent revenue outperformed its target by $136 million, or 9.2%, led by $100 million outperformance in tax revenues and $36 million in non-tax revenues."

"On the expenditure side, total spending for the fiscal year was $1.664 billion, or 3.7% higher than the approved budget amount."

And, the PM emphasized three times what a large part of expenditure that wage bill comprises:

John Briceno, Prime Minister
"Government spending on salaries for its estimated 15,000 workforce, all teachers and public officers was $503 million, with an additional $132 million spent on pensions and ex-gratia payments. Put it differently, $0.52 of every dollar of government recurrent spending goes to salaries and pensions. $0.43 of every tax dollars was spent on salaries and pensions."

And, the PM made it clear, government intends to keep that already high wage bill in. check:

John Briceno, Prime Minister
"Having included in today's presentation the immense sums being spent on wages and pensions, I wish to underscore that government genuinely appreciates the value of the contribution to national development being made constantly by teachers, public servants and members of the security forces."

"At the same time, we are obliged to protect for all Belizeans the fiscal gains achieved over these four years, so that default and devaluation can never again stalk public finances and the country. At current levels and as a percentage of revenues, the public sector payroll in Belize exceeds, and in many cases by large margins the public sector payroll in the Caribbean and Latin America."

And while keeping the wage bill in check - the PM also stressed how important tourist earnings are to the economy's performance:

John Briceno, Prime Minister
"Compared to 2023 arrivals jumped by 19.6%, whereas cruise visitors numbers were almost identical."

"Any decline in international visitors will have a negative spillover across related industries such as transportation, restaurants and accommodation, and as well as distributive trade."

And the emphasis now appears to be cruise tourism:

John Briceno, Prime Minister
"I am pleased to report that the master plan has been completed for the port, as well as the adjoining almost 7,000 acres that government had also acquired. Some of the top consultants in this field believe that a new cargo and bulk facilities, along with the necessary channel and harbor works, are operationally and commercially viable if combined with a cruise berthing facility."

"Given the massive investments required, approximately 400 million USD, the master plan is to be implemented in phases, but would provide Belize with a state of the art cargo, bulk and tourism hub."

And the PM also outlined a long list of Capital 3 projects that will aid that tourism sector:

John Briceno, Prime Minister

  • $9.0 million for the construction of a Solar Energy Plant funded by the Saudi Fund for Development."
  • $5.3 million for the upgrading of the Corozal to Sarteneja Road."
  • $20.0 million for the Upgrading of the George Price Highway from Belize City to Hattieville '
  • $6.6 million for the Caracol Road Project - Phase 2.
  • $18.0 million for the Upgrading of the Philip Goldson Highway
  • $1.5 million for the Upgrading of the Thomas Vincent Ramos Highway

With the unlikely - for the PUP- trinity of sound fiscal management, infrastructure spending and big money cruise tourism - the PM oddly harkened back to social justice in his closing flourish:

John Briceno, Prime Minister
"I truly believe this land of ours to be the world's most Bountiful garden. It blossoms abundantly, enabling every Belizean the promise of prosperity together as collective gardeners, as benefactors of generations to come, and with the guidance of our creator. Let us always stand with competence and conscience. The prolific flowering of national prosperity on the soils of social justice."

The budget presentation lasted 83 minutes, which the PM said is a compressed version.

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