Prime Minister Drew Powers Progress with Major Cost of Living Interventions

Basseterre, St. Kitts and Nevis, December 19th, 2024 (PMO) – The Budget Boost Wallet
(BBW), announced by Prime Minister Hon. Dr. Terrance Drew, during his Budget 2025
presentation, is already making waves across the federation and the region. This transformative
initiative, set to commence in January 2025, is designed to provide direct and meaningful relief to
individuals and households grappling with the rising cost of living.
The Budget Boost Wallet will provide a monthly payment of $250 to individuals earning up to
$5,000 per month, for a period of six months, totaling $1,500 per recipient. Importantly, this support
is offered on a per-person basis. For households with multiple qualifying members, each individual
will receive the benefit, meaning a family of three could see monthly support of $750.
This targeted initiative is specifically designed to assist citizens with essential costs such as
groceries and utilities, directly addressing the burdens created 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, lowering the cost of goods and services for all residents of St. Kitts and Nevis.
Prime Minister Drew emphasized 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 carried an extraordinary financial burden to protect our people from the
storm of inflation. Now, with the Budget Boost Wallet, we are doubling down on 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 the burdens they face, and building resilience for
the future.”

The BBW and VAT reduction are complemented by the ongoing work of the Cost of Living Task
Force, established to monitor and address critical issues impacting household expenses. The Task
Force will continue its efforts to implement sustainable policies that provide relief to citizens,
maintain purchasing power, and address the ripple effects of global inflation.
These new measures come on the heels of historic government investments made in 2024 to shield
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 such as 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 importance of the Budget Boost Wallet within the
context of the Federation’s broader Sustainable Island State Agenda, which prioritizes economic
stability, inclusivity, and sustainability. He noted that these measures not only address the
immediate needs of citizens but also contribute to a stronger foundation for long-term economic
recovery.

“Our Government understands the pressures our people face. With bold initiatives like the Budget
Boost Wallet and VAT reduction, we are not only responding to the challenges of today but also
paving the way for a brighter and more secure tomorrow. These policies are about empowering our
citizens, restoring hope, and ensuring that no one is left behind.”
As the Year of Recovery begins, the Government of St. Kitts and Nevis remains resolute in its
mission to power progress and deliver meaningful change. The Prime Minister reaffirmed his

Administration’s commitment to improving the lives of all citizens, emphasizing 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.