Premier Natalio “Sowande” Wheatley unveiled a record-setting 2026 budget with proposed spending of more than half a billion dollars during a nearly two-and-a-half-hour address last Thursday in the House of Assembly.
Themed “Pillars of Progress — Building a Sustainable Nation,” the address was the third of its kind under the premier’s current administration, and like his previous budget speeches it was structured around the National Sustainable Development Plan his government adopted in 2023.
“Our path to sustainability has reached a pivotal stage,” the premier said at the beginning of the address, adding, “Through resilience and collective effort, the Virgin Islands has persevered.”
From there, he went on to recite the 2026 budget numbers and present an extensive list of recent initiatives that he said have contributed to a strong recovery following the 2017 hurricanes and the Covid-19 pandemic.
Then he laid out wide-ranging plans he said will boost economic growth in the coming months while also strengthening social protections.
Opposition criticism
Opposition Leader Myron Walwyn, however, said he was not impressed.
Despite the speech’s length, Mr. Walwyn described it as “all froth, no mauby” and reiterated his past allegation that Mr. Wheatley’s government has failed to produce a comprehensive economic plan.
“[The premier] some weeks ago stated that the 2026 budget would be a bread-and-butter budget,” Mr. Walwyn told 284 Media. “I took that to mean that the focus of the budget would have been on everyday needs of the ordinary man — that is, the things that affect their lives daily.”
But the budget address fell flat, he said.
“Absolutely nothing was mentioned about the high cost of living,” Mr. Walwyn said. “The price of food is increasing every single day, putting basic food items out of the reach of the people. No plan articulated to address that situation.”
Revenue and spending
During the address last Thursday, the premier told the HOA that his total proposed budget for 2026 includes $550,590,051 in spending — up from a projected $470 million this year.
These expenditures, he said, will be funded by about $446 million in projected revenue collections — some $21 million above 2025 levels — along with nearly $55 million in existing loans and almost $50 million in contributions from existing fund balances.
Of the total projected spending, about $442 million will go to recurrent expenditure — up from $393 million this year in a sharp spike the premier said was driven largely by a 13.4 percent increase in employee compensation.
Another $80 million, he said, is earmarked for capital expenditure, with nearly $21 million for debt servicing.
Next year’s capital projects — which he said will focus largely on roads, ports and other transportation infrastructure — will be funded primarily by drawdowns of about $47 million from two existing loans: the $65 million Caribbean Development Bank recovery loan obtained after Hurricane Irma and the $100 million commercial loan obtained last year from CIBC Caribbean bank.
About $26 million more will come from the Consolidated Fund and the Development Fund, and the rest will be covered by nearly $6 million from the Reserve Fund; $1.1 million from the Transportation Network Improvement Fund; and $370,000 from the Miscellaneous Purpose Fund, he said.
“Our projections are founded on principles of fiscal discipline, good governance, transparency, efficiency and prudent optimism, considering the sustained resilience of our key economic drivers — financial services and tourism — as well as current conditions in the global marketplace,” the premier said.
Public debt
He added that the government’s plan will keep public debt firmly under control.
“The Virgin Islands is a country that has taken pride in always having a low public debt,” Mr. Wheatley said. “At the end of 2024, our total public sector debt stood at $163.54 million, reflecting a 5.5 percent reduction from 2023 through ongoing debt servicing.”
This debt, he said, is “carefully managed” across 13 loans from four creditors: CIBC Caribbean, Republic Bank, the Social Security Board, and the Caribbean Development Bank. By the end of this year, he added, debt is projected to climb to about $171 million.
“Our commitment to effective debt management remains strong, being guided by the Protocols for Effective Financial Management and the 2025-2027 Medium-Term Debt Strategy, which includes the annual borrowing plan,” he said. “We will continue to prioritise fiscal discipline, ensuring that all borrowing supports long-term growth and is secured at the lowest possible cost.”
Plans for 2026
The premier also outlined his 2026 plans for the six broad areas highlighted by the National Sustainable Development Plan: economy, infrastructure, health, education, environment and governance.
Addressing the first category, he said government is working to bolster the twin pillars of the economy — tourism and financial services — in order to drive growth.
Last year, he said, 1.1 million people visited to the territory — the second highest number to date — with projections of 1.12 million arrivals by the end of 2025. More growth is expected in 2026, to about 1.19 million, he said.
To strengthen the sector, he added, its management has now been fully transferred to the Ministry of Tourism, Culture and Sustainable Development, enabling more coordinated policy and infrastructure development. A long-delayed 10-year National Tourism Policy is now complete and under Cabinet review, with a National Tourism Plan to follow, he added.
Plans for 2026 include the introduction of a Tourism Development Bill designed to create a unified authority to coordinate tourism initiatives and branding, he said.
“Major upgrades, including the redevelopment of Prospect Reef Resort, are planned,” he added. “The [Prospect Reef management] board has submitted recommendations for bidders, with requests for proposal to be issued in December.”
Financial sector
Plans are also in the works to boost the financial services industry, which Mr. Wheatley said has seen a relatively strong performance in recent months following years of structural decline.
This year, he said, revenue collections from financial services fees through August amounted to $160.28 million, with projections indicating that total revenues could reach $263.62 million by the end of 2025 — up four percent over 2024 collections.
To shore up the sector, he said, the budget includes spending for implementing recommendations from the Financial Action Task Force, which in June added the territory to its so-called “grey list” of jurisdictions that require increased monitoring.
Other conduits for revenue include a planned revision to the Investment Act designed to create a system focused on fostering local and foreign investment, according to the premier.
The Ministry of Finance also plans to launch a Good Standing Policy designed to enforce tax compliance and boost revenue collection.
“The policy will be circulated for stakeholder consultation before advancing to Cabinet for approval,” the premier said.
Also in the works are labour initiatives to foster collaboration in the marine, construction and hospitality industries through workshops and job fairs to be implemented in the coming year, he said.
Infrastructure
The 2026 infrastructure agenda, meanwhile, is largely concerned with upgrading the territory’s transportation network, including airports, seaports and roads, according to the premier.
“My government’s mission is to build robust infrastructure systems that not only enhance the quality of life for all residents but also ensure continued access to essential services in the face of evolving challenges,” he said.
Airport expansion
This push, he added, includes the launch of the long-promised airport expansion, which he has predicted will cost more than $400 million.
“This project will improve travel options, increase tourism and investment, create jobs — and is planned to begin construction in 2026 after identifying qualified partners through an expression-of-interest process,” Mr. Wheatley said. “A master plan for airport development will be submitted for approval, and an Environmental Impact Assessment is planned by the end of 2025.”
Other airport improvements will include enhanced fencing, emergency response systems, and digital flight displays to support operations and disaster readiness, Mr. Wheatley said.
The premier also announced that the West End and Road Town ferry terminals will get upgraded lounges, ticketing areas, modern security, improved accessibility, and greater docking capacity for larger vessels, in addition to improved cargo handling, real-time digital signage, and upgraded waiting areas for travellers and operators.
Also planned are continued works to the territory’s water system following consultations with the Canada-based nonprofit organisation Operators Without Borders, the premier said.
Health and wellness
The premier also addressed plans for the territory’s healthcare systems, which have been plagued by understaffing, infrastructure failures and other issues in recent years.
“Through strategic initiatives we aim to continue strengthening health infrastructure and social protection systems across the territory,” he said.
In 2026, key initiatives include upgrading the Dr. D. Orlando Smith Hospital’s lobby for better accessibility, installing a central backup generator at two hospitals, repairing the roof at Nurse Iris O’Neal Medical Centre on Virgin Gorda, and improving the Iris Penn Smith Clinic in East End, Mr. Wheatley said.
Next year, he added, will also see construction of a $1.8 million transitional centre at East End/Long Look, which will provide temporary housing for vulnerable families.
Allocations also have been made for a senior home in Greenland; for renovations to the Rainbow Children’s Home and the BVI Autism Centre; and for repairs to the community centres at East End/Long Look and Purcell Estate on Tortola and in North Sound on Virgin Gorda, he said.
“These targeted initiatives build on foundational reforms and programme enhancements, collectively advancing the territory’s capacity to respond adaptively to social challenges and strengthen its protective systems,” Mr. Wheatley said.
Also included in the budget are resources for housing and repatriating immigration detainees, he said.
Education, governance
Turning to education, the premier anticipated the planning and design of the long-promised new national library, though he did not provide a timeline for construction or completion.
Schools, he added, will get upgrades to improve air quality, expand learning spaces, and upgrade electrical systems to support air conditioning and smart technologies.
“New furniture and safer facilities will ensure that every school is comfortable, functional and future-ready,” the premier said.
He also laid out various plans to improve governance.
These steps, he said, include ongoing reforms coming out of the Commission of Inquiry as well as new measures.
“To uphold public accountability, we will appoint an information commissioner in early 2026 to enforce the Data Protection Act, 2021, ensuring responsible handling of personal data,” he said. “Institutional strengthening will continue, with the Service Commissions Secretariat expanding its reach via online services, legislative updates and public awareness initiatives.”
Additionally, he said, the long-delayed Human Rights Commission will become operational in 2026, focusing on advocacy and monitoring detention facilities.
This year, he added, a contract was signed with Trojan Design and Development Ltd. to design a juvenile detention facility separating minors from adults. These plans will progress in the new year, when renovations to His Majesty’s Prison are also slated, Mr. Wheatley said.
Turning to the environment, Mr. Wheatley promised public consultations on regulating single-use plastics and Styrofoam products, as well as a deposit-return system for glass, aluminum and thermo-polyester beverage containers.
“I admonish my fellow Virgin Islanders to put on your hard hats, put on your construction boots and your construction vests,” he said. “Let’s build a Virgin Islands that will provide shelter to this generation and generations to come, and let us build with love and let us build in unity.”
Next steps
After the budget address, the HOA entered the closed-door Standing Finance Committee deliberations, where all 13 HOA members meet in private with senior public officers and decide spending details for the 2026 budget.
After that, they will pass the budget into law through an appropriation bill.
Freeman Rogers contributed to this story, which Joaquin Contreras reported from New York.
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