The opposition Unity Labour Party (ULP) ‘s criticism of the EC$105 million current account deficit in the EC$1.9 billion budget for 2026 proves their own fiscal irresponsibility.
Prime Minister Godwin Friday made that argument as he wrapped up the debate on Budget 2026, which the government approved amidst a lack of support from the three-member parliamentary opposition.
The fiscal package also approved the borrowing of EC$200 million on the local market.
The opposition, led by Ralph Gonsalves, who lost his premiership when the ULP was voted out of office 14-1 in November, said it would be difficult for the government to raise funds regionally.
They said there is a looming cash crunch and overdraft dependence.
However, the prime minister told lawmakers that the opposition is ultimately predicting that these imbalances will push the country into an International Monetary Fund programme.
“Now, no matter your politics, why would you wish that on your country? Why would you wish that on your people?” Friday said.
The prime minister, however, said he welcomed the “rare moment of agreement” from the leader of the opposition, who said that the projected current account deficit of EC$105 million is a sign of fiscal irresponsibility.
“At least, for once, we stand on the same page on the numbers, if not on the cause of them,” Friday said.
The prime minister said the essential question is, “How did we get here?”, adding that during the ULP’s last term in office, the cumulative current account deficit exceeded EC$200 million.
He said that in 2025 alone, the deficit stood at $70 million, “yet they now object to an additional $35 million in the 2026 budget”.
The prime minister said the funds are directed towards correcting long-standing social injustices left behind by the former administration.
“And if deficits under the ULP were tolerable, why is a deficit used to repair their damage suddenly irresponsible? They’re talking out of both sides of their mouths — a skill that I do not have and I hope never to perfect.
“They cannot, on the one hand, claim that 90% of the budget is a carryover of their plans and programmes … and then, on the other hand, they deny responsibility for the fiscal position those same plans produced,” Friday said.
The prime minister said the current account deficit is not a sign of governmental failure but a transparent accounting of the true cost of the rescue mission inherited from the ULP government.
“We are charting a sustainable, forward-looking path for our country. We are not doing it on a wing and a prayer,” Friday said.
“There was a reason why, at the outset of my budget address, we hearkened back to the time of the first NDP administration and indicated what were the sound principles and policies that were adopted to chart a more affordable and sustainable future. Those still apply today. So, in short, we know how to do it,” he said.
Friday, who became an MP in 2001, was referring to the 1984 to 1989 term, which culminated with the NDP winning all 15 seats in Parliament, a feat that has yet to be repeated by any political party in the country.
The NDP’s stint of four successive five-year terms in government was cut short, ending in the general election of March 2001, halfway through the fourth term.
The early vote was triggered by political unrest in early 2000.