Wheatley Reports Strong Fiscal Performance
Premier Dr. the Hon. Natalio D. Wheatley says the Virgin Islands recorded stronger-than-expected revenues in 2024 and is projecting continued growth in 2025, driven by fiscal discipline, tax system reform and infrastructure investment. The government plans restrained recurrent spending, higher public-sector pay allocations and increased capital spending under the National Sustainable Development Plan.
Wheatley told the House of Assembly that the Virgin Islands economy showed “remarkable resilience and strength” in 2024, with preliminary revenue collections outperforming expectations and further growth forecast for 2025. Total revenues for 2024 reached $414.61 million, about 6.9 percent above the original budget, the Premier said during the Twelfth Sitting of the Second Session of the Fifth House of Assembly.
More than 90 percent of that total came from tax receipts, with the biggest gains seen in taxes on goods and services, payroll and international trade. For 2025, the government projects total revenue of $425.44 million, a 2.6 percent increase over 2024. The financial services sector remains the largest single revenue source, contributing $258.04 million.
Wheatley highlighted the rollout of the SIGTAS 3.0 tax system as a key driver of improved collection and accountability, and said the reform is expected to deliver a 13.5 percent rise in payroll tax receipts. Recent minimum wage increases and public officer salary adjustments are also expected to support revenue growth.
On the spending side, recurrent expenditure is projected at $393.29 million for 2025 — 8.7 percent below the revised 2024 budget — which the Premier called a “considered and responsibly managed approach to spending.” Employee compensation has been increased to $182.35 million, a 13.4 percent rise over 2024 actuals, reflecting commitments to public-sector welfare and the implementation of reforms recommended by the Commission of Inquiry, the CFATF Mutual Evaluation and law enforcement reviews.
Goods and services spending is set at $105.84 million, an increase of roughly $11.26 million to fund priorities such as expanded housing resources, repatriation of immigration detainees, the establishment of a dedicated Meteorology Department and upgrades to administrative technology systems.
Looking ahead, the administration plans to shift greater emphasis to capital expenditure under the National Sustainable Development Plan to support sustainable infrastructure, job creation and broader economic growth. Public debt was $163.54 million at the end of 2024 — a 5.5 percent reduction year-on-year — and is projected to reach $170.94 million by the end of 2025 under a three-year Medium-Term Debt Strategy.
Residents can expect continued focus on fiscal discipline, targeted investment in services and infrastructure, and further tax administration reforms aimed at strengthening long-term economic stability.
Primary source: JTV