Grenada’s fiscal position has tightened sharply in the first half of 2025, with government revenue and grants falling well below last year’s levels. Data from the Ministry of Finance reveal a decline of EC$112.6 million, with total inflows for January to June amounting to EC$627.7 million, compared to EC$740.3 million in the same period of 2024.
Key Revenue Pressures
The downturn stems from weaker collections in property tax and a notable dip in non-tax revenue. Grenada’s Citizenship by Investment (CBI) programme, once a major driver of state earnings, saw its contribution collapse from EC$40.5 million in June 2024 to EC$10.5 million in June 2025.
Despite this, June’s overall current revenue stood at EC$93.8 million, which slightly exceeded the government’s monthly target but remained EC$21.4 million below June 2024 levels.
Grants and Expenditure
External support helped offset part of the gap. Grants totalled EC$6.5 million in June 2025, almost double the previous year’s figure.
On the expenditure side:
- Current expenditure (excluding debt repayments) reached EC$71.4 million, undershooting projections by EC$10.2 million.
- Capital expenditure accelerated to EC$45.3 million, outstripping both the EC$29.6 million target and last year’s EC$26.2 million.
Debt and Balances
Debt servicing in June remained modest, with principal repayments of EC$2.1 million and interest payments of EC$1.6 million.
However, fiscal balances show strain:
- June primary balance (including grants): –EC$14.8 million.
- Year-to-date primary balance: –EC$11.7 million, far below last year’s strong surplus but still EC$43.5 million better than government’s internal target.
- The overall balance for January–June 2025: –EC$30.4 million, which, while negative, was significantly improved compared to the –EC$79 million budgeted.
Outlook
The figures paint a picture of an economy under fiscal stress, primarily from declining non-tax revenue streams, while investment spending has accelerated. With CBI inflows weakening and tax revenues softening, Grenada’s fiscal management in the second half of 2025 will depend heavily on external grants, tighter expenditure control, and strategies to stabilize its revenue base.
