By Val Matthias. Updated 7:42 a.m., Thursday, January 29, 2026, Atlantic Standard Time (GMT-4).
Opposition Leader Dr. Ralph Gonsalves has accused the government of withdrawing or reducing funding for several major development projects in the 2026 Estimates of Revenue and Expenditure, warning that the move will stall economic activity and undermine national priorities.
Speaking on Star FM alongside former Finance Minister Camillo Gonsalves, the Opposition Leader described the capital budget as “unimaginative” and charged that initiatives previously earmarked for funding had been removed. “There are bits and pieces, but overall, the estimates are in retreat or in a condition of stasis, he said. “Do not expect this budget to generate economic growth. This budget is about controlling and dispensing scarcity.”
Among the projects reportedly withdrawn are the Arnos Vale City redevelopment, which was expected to transform the former airport site into a modern urban hub; housing programs aimed at expanding affordable housing for low‑income families; and community infrastructure projects such as rural road upgrades and local facilities. The opposition argues that these cuts will directly affect jobs, housing opportunities, and community development.
Camillo Gonsalves added that the government’s reliance on borrowing raises further questions about its ability to deliver on promises. The 2026 Estimates include $200 million in local loans and $573.8 million in external loans, alongside a record current account deficit of $105.5 million. “They are treading water dangerously on the recurrent side, and on the capital side they are dispensing scarcity,” he said.
The opposition contrasted the current situation with previous years, noting that deficits under the former administration were far smaller. Dr. Gonsalves told listeners: “This deficit is more than the last four budgets combined, plus $15 million on top of that.”
The capital budget traditionally funds infrastructure, housing, healthcare, and education projects. Cuts or withdrawals can directly affect employment and services, making the issue one of immediate public concern. Beyond the deficit, the government must also find nearly $300 million for debt amortization and sinking fund contributions, bringing total financing needs to more than $400 millionth is year.
This is Prime Minister Godwin Friday’s first budget since taking office, and the opposition is framing the alleged project withdrawals as evidence of retreat from development promises and a lack of transparency.
For ordinary Vincentians, the issue is not abstract. Cuts to capital projects mean fewer jobs, slower infrastructure upgrades, and reduced access to housing and services. The opposition has pledged to highlight specific examples during the upcoming budget debate, arguing that the government must explain why projects central to national development have been sidelined.
The Budget Session opens on February 9, 2026, with the Throne Speech by Governor‑General Stanley Kendrick John, KC, followed by Prime Minister Friday’s Budget Address. With the opposition framing the capital budget as a retreat from development, the debate is expected to be one of the most contentious in recent years.
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