Briceno Unveils $1.7B Budget Amid Record Growth and Rising Wage Bill

The budget for the current fiscal year was presented by Prime Minister John Briceno, and is usual form, the wage bill is taking a big chunk of the government’s monies.  Based on the reading, 698 million dollars have been allotted to salaries and pensions, an equivalent to 56 percent of total recurrent spending. During his 85-minute reading, PM Briceno outlined the country’s significant economic recovery since 2020 and presented a budget focused on record capital investments in key sectors.  He emphasized the strong mandate received by his administration in this year’s election, attributing it to “pocketbook policies” that have engineered a “miraculous economic transformation.”  He noted that in 2024, Belize achieved the highest GDP growth rate in the Western Hemisphere at 8.2%, second only to Guyana. He also pointed to a record low unemployment rate of 2.1%, consistent primary budget surpluses, a minimum wage increase of almost 50%, and $1.12 billion in foreign direct investment over the past four years.  Looking ahead, while acknowledging potential global headwinds, PM Briceno outlined a budget proposal for this fiscal year with projected revenues of $1.7 billion.  

John Briceño, Prime Minister of Belize: “On the revenue side of the ledger, $1.74 billion is projected for revenue and grants, which is an increase of $94 million compared to the last period,  or some 6 % growth to be achieved by continued economic growth and collection efficiencies. On the expenditure side, we propose $1.782 billion in total spending of which $1.253 billion are recurrent in nature and $528.8 million dollars represent capital investments. In this budget cycle, $80 million previously classified as subsidies and transfers is being reclassified as what they truly are which is personal emoluments. This is an important adjustment since these subsidies and transfers category imply an annual adjustable outlay as opposed to personal emoluments that carried different obligations. Therefore, for this fiscal year, $698 million, let me repeat, for this fiscal year, $698 million is therefore allotted to salaries and pensions representing 56 % of total recurrent spending. During the fiscal year Belize’s GDP is forecasted to exceed $7 billion of annual output. With this growth and the prudent levels of spending we propose, the primary surplus is expected to rise to 1.52 % of GDP or $106 million. The overall budget deficit is projected at 0.59% in dollar terms, some $41.6 million, which when added to the $126 million for amortization payments means that the total financing required by the government for the fiscal year is $167 million or just over 2 % of 2025 GDP.”

Key features of the proposed budget include an unprecedented $528.8 million allocated to capital projects, representing 30% of total spending, the highest ever.  Capital II Program which is funded from general revenue is planned for the prioritization of road infrastructure and counterpart funding for development partners.  Under the Capital III Program, 184.9 million dollars have been earmarked, to be funded through highly concessionary loans and grants, with no commercial borrowing. According to PM Briceno, under this category, projects would include energy (solar plant, renewable energy integration), health (new hospitals in San Pedro and Belmopan), education (skills development), economic transformation (urban development, water and sanitation, tax administration), and infrastructure (highway upgrades).  

John Briceño, Prime Minister of Belize: “In this year’s budget, government will receive $1.7 billion in revenues and spend more or less that same amount, the same $1.7 billion. For every dollar spent, 40 cents are for salaries and pensions, 30 cents are for project called capital spending, 17 cents are for goods and services such as utility, fuel, rent and the like, 8 cents for interest on previous loans and five cents on subsidies and grants for various public service purposes like health and education. This year we will be appropriating a record $336.7 million to our capital II budget. That is the portion of the overall capital program that is funded from general revenue as opposed to donor financing. This emphasis continues to be on the upgrading and maintenance of our road infrastructure, such as the Progresso to San Estevan Road and others and to provide the necessary counterpart resources for capital projects funded by our development partners. I would like  to list just a few of these programs, allowing the substantive ministers to provide greater detail during their presentation. For infrastructure development, $2.2 million for the Corozal to Sartanjal Road project. $14.7 million for the upgrading of the George Price Highway from Belize City to Belmopan. Where is Minister of Corozal South-East? I never heard him clapping about the Progresso Road. You are very quiet sir.  $9.4 million for upgrading of the George Price Highway from San Ingancio to Benque. $3.5 million for the upgrading of the Philip Goldson Highway from Mile 8 to Mile 24. $4 million for specialized equipment and a combined total of some $30 million for continued maintenance of roads, streets and drains countrywide. Other significant allocations include for health, $50 million for the operation of the National Health Insurance Program. For education $2.6 million for the Healthy Start feeding program.  $2.2 million for internet for schools.  For social and economic development, $6.3 million dollars for constituency development programs. $7.1 million for community support and small grants programs. $1.5 million for assistance to small farmers. $4.1 million for youth anti-violence multi-sectoral programs. For land development, $22.0 million for land acquisition payments and land surveys. In Capital III programs, Mr. Speaker, this year we will be approximating a record $184.9 million to our Capital III budget which I’m proud to say is all funded by either highly concessionary loans or in some cases by outright grants. And Mr. Speaker, I would like to stress that none of these programs or projects are funded by any borrowing on commercial terms. Mr. Speaker, would like to list just a sampling of the key capital projects that drive this year’s public investment program in conformity with Belize’s medium-term development strategy, as well as the overarching goals of Plan Belize Version 2.0.”

PM Briceno acknowledged the delayed presentation and attributed it to the recent General Elections while dismissing suggestions of irregularity, citing precedents from previous administrations.  The budget will be debated in the House on May 26, 27 and 28./