**Basseterre, St. Kitts and Nevis (PMO)** – The Budget Boost Wallet (BBW), announced by Prime Minister Hon. Dr Terrance Drew during his Budget 2025 presentation, is already making an impact across the federation and the region. This transformative initiative is set to launch in January 2025 and aims to provide direct and meaningful relief to individuals and households facing the rising cost of living.
The Budget Boost Wallet will offer a monthly payment of $250 to individuals earning up to $5,000 per month for six months, totalling $1,500 for each recipient. Importantly, this support is provided on a per-person basis. Households with multiple qualifying members will receive benefits for each individual, meaning that a family of three could receive up to $750 monthly.
This targeted initiative is designed specifically to help citizens with essential expenses such as groceries and utilities, addressing the challenges posed by imported inflation and global economic pressures.
In addition to direct cash support, the government has introduced a VAT reduction from 17% to 13% for the first six months of 2025. This unprecedented measure will provide immediate and widespread relief by lowering the cost of goods and services for all residents of St. Kitts and Nevis.
Prime Minister Drew emphasised that no other nation in the region offers such a comprehensive and forward-thinking package to combat inflation and rising living costs. “Over the past year, we’ve shouldered an extraordinary financial burden to protect our people from the storm of inflation. Now, with the Budget Boost Wallet, we are reaffirming our commitment to ensuring that every citizen can meet their basic needs with dignity and security. We are putting more money into the hands of our people, easing their burdens, and building resilience for the future.”
The BBW and VAT reduction are supported by the ongoing efforts of the Cost of Living Task Force, which has been established to monitor and address critical issues affecting household expenses. The Task Force will continue to implement sustainable policies that provide relief to citizens, maintain purchasing power, and address the ripple effects of global inflation.
These new measures follow historic government investments made in 2024 to protect citizens from rising costs. The government allocated $320 million in subsidies and social programs, including fuel subsidies, electricity relief, and cooking gas support, alongside enhanced safety net programs like LIFT and STEP. These interventions exemplify the government’s proactive and compassionate approach to serving the people of St. Kitts and Nevis.
The Prime Minister further highlighted the significance of the Budget Boost Wallet within the Federation’s broader Sustainable Island State Agenda, which prioritises economic stability, inclusivity, and sustainability. He noted that these measures not only address the immediate needs of citizens but also contribute to building a stronger foundation for long-term economic recovery.
“Our government understands the pressures our people are facing. With bold initiatives like the Budget Boost Wallet and VAT reduction, we are not only addressing today’s challenges but also paving the way for a brighter and more secure tomorrow. These policies aim to empower our citizens, restore hope, and ensure that no one is left behind.”
As the Year of Recovery begins, the Government of St. Kitts and Nevis remains committed to powering progress and delivering meaningful change. The Prime Minister reaffirmed his administration’s dedication to improving the lives of all citizens, emphasising that this is a government that listens, acts, and puts its people first.
To learn more about the government’s achievements and successes, visit www.gov.kn/national-accomplishments.