Government Defends Budget Amid Opposition’s Economic Criticism

Despite claims from the Leader of the Opposition of Belize’s economy remaining stagnant, the government is pushing back, pointing to signs of steady growth. Speaking this morning, Minister of Public Service, Governance, and Disaster Risk Management Henry Charles Usher defended the administration’s proposed budget, saying it reflects a strong economic rebound since 2020. Usher reminded the public that the People’s United Party inherited a heavily indebted nation, but has since led what he called a stellar financial recovery. In his contribution to the budget, Usher cited key economic indicators as evidence of ongoing growth and strategic investment. 

Henry Charles Usher, Fort George Area Representative: “Economic growth for 2024 was measured at 8.2%, the highest GDP growth in the Western hemisphere other than oil-rich Guyana. GDP at the end of 2020 was $4.086 billion. At the end of 2024, it had grown to $6.825 billion. Even with all the Petro-Caribbean and BNE bonanza the economy contracted under the UDP three years, and Belize was in a prolonged recession. Two, the unemployment rate has been reduced to 3%. At no time under the UDP did the unemployment rate go below 6.6%. Pre-COVID unemployment was actually steadily going up. The job market has had a remarkable recovery with many sectors reporting a shortage of labor. Add to that the increase in the minimum wage of $5 per hour, benefiting almost 43,000 workers with a 51% increase in their per hour salary. And this government is committed to increase the minimum wage to $6 per hour in this term. The public debt is now at 61% of GDP. At the close of year 2020, the public debt stood at $4.2 billion. At the close of year 2024, it is at $4.42 billion, an increase of $200 million in four years, a far cry from the days when the UDP was borrowing $1 million per day, or $360 million per year, just to pay salaries, keep the lights on and the water pouring. And four, when the PUP took office the actual outturn in the economy in 2020 revealed a primary deficit of 10.81% and an overall deficit of 12.82%. Looking at the figures from the past year, in the approved budget for 24-25 the projection was for a primary surplus of 0.46% and an overall deficit of 1.3%. The actual projected outturn for 24-25 is now projected to be a primary surplus of 1.48% and an overall deficit of 0.26%. This may sound like a small difference, Mr. Speaker, but in reality in the primary surplus area alone it represents more than $70 million. Again, a testament of the fiscal prudence and fiscal discipline of the John Briceño administration.”

The Minister emphasized that the government remains committed to building the economy and investing in areas that directly benefit Belizeans.