Key Points of the 2026-27 Budgetary Proposals and Financial Statement as delivered by Minister of Finance Ryan Straughn on March 16, 2026.
- This is the first Budget being presented by this Government while not in an IMF programme. Barbados has regained control of its economic future. The country is on a stronger economic footing.
- Barbados remains in a stand-by arrangement with the IMF.
- Debt to GDP ratio was at 99.8% at October 2025; at January 2026 now 93.3%.
- Barbados is now off everybody’s lists – it meets international standards for transparency and financial regulation.
- Adjustments were made to Budget to respond to current global challenges – for example, corporation tax assumptions reduced by $200 million.
- Unemployment rate at all-time low of 6.1% at end of December 2025.
- Central Bank expected to report next month 19th consecutive quarters of growth.
- $728.5 million spent in fuel imported last year.
- In past two weeks Brent crude has risen from US$64 per barrel to just under US$106.
- Over next 3 months, hedge for Bajans with oil price locked in at US$92 per barrel – 80 000 barrels per month.
- From April 1, Government will absorb 50% of increase in Fuel Clause Adjustment for next 3 months. It will cost Government $7.9 million.
- Government cutting VAT and excise tax caps on fuel. From April 1, cumulative reduction of 15 cents per litre at the pump.
- They are not permanent but to deal with the current crisis.
- To businesses: Identify your energy wastage and fix it.
- During COVID-19 in 2020, country imported $519m in fuel. Last year it imported $728.5m.
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- From April 1 to March 31, 2027:
- To extend Excise and CAT holiday on electric vehicles
- Cost of replacement batteries for electric and hybrid vehicles will be eligible for the five-year personal income tax deduction
- Shipping bunker surcharges:
- For 20-foot containers – from US$200 per container to US$700
- For 40-foot containers – from US$400 per container to US$1400
- From April 1, Customs and Excise Department to cap value of 20-foot container at US$3000 and US$6000 for 40-foot container.
- Reverse tax credit to increase from $1300 to $1700 from April 1 for those earning up to $25000 per year.
- Eligibility threshold to increase to $35000 and those beneficiaries will receive $750 in reverse tax credit.
- Two dedicated Gun Courts coming – one dealing with offences committed in the last year and the other with the backlog of cases.
- All purchases of GPS and dashcams systems for vehicles to be duty- and VAT-free on importation to Barbados for one year.
- Customs duties and VAT to be removed for one year from importation of CCTV/security systems.
- Goods imported for personal use through registered couriers:
- • Tax-free amount raised from $60 to $150
- • From $150.01 to $199.99, duty-free and only VAT payable
- • Anything over $200 in value, Customs duty and VAT apply
- Excludes items like alcohol, cannabis products, cigars and cigarettes
- A $500 fine for false declarations or under-invoicing
- Government announced the launch of the Green Industrial Gateway Advantage (GIGA) – to create thousands of new, high-value jobs.
- This is projected to raise the country’s foreign earnings from US$700m to between US$4-6 billion annually within a decade.
- Multi-birth cash grant:
- • $300 per month for twins (up to age five)
- • $600 per month for triplets and more (up to age five)
- Barbados Republic Child Wealth Fund
- • $5000 in trust per child born after November 30, 2021.
- • The just-concluded Estimates have set aside $52.1m to cover current amounts. It is estimated to cost $10m-$12m per year going forward