by Linda Straker
- Budget Loan Authorisation Act authorises Minister of Finance to borrow from various sources to finance the budget
- Loan Authorisation Act for 2024 was EC$375 million and EC$420 million for 2025
- Legislation allows government to raise money through loans, bonds, promissory notes or other financial instruments
For the 5-year period of 2022 to 2026, Grenada increased its Budget Loan Authorisation Act by EC$120 million, with the highest jump occurring in 2025 by EC$45 million.
During the same period, the Budget or Estimates of Revenue and Expenditure experienced a continuous increase, moving from EC$1,352,210,635 in 2022 to EC$1,960,013,910 in 2026, which reflects a 45% increase of EC$607,803,275 over 5 years.
The Budget Loan Authorisation Act is a standard legislation approved by the Parliament of Grenada whenever a budget or Estimate of Revenue and Expenditure is presented for approval by members in both the Lower and Upper House. The main objective is to authorise the Minister of Finance to borrow from various sources to finance the budget.
The Loan Authorisation Act for for 2022–2026 are as follows:
| Year | Budget Loan Authorisation (EC$) | % Increase |
| 2022 | $330 million | |
| 2023 | $350 million | 6% |
| 2024 | $375 million | 7% |
| 2025 | $420 million + $405 million for New Hospital Project Total: $825 million |
12% (excluding New Hospital Project) |
| 2026 | $450 million | 7% |
2022 was EC$330 million; for 2023 it was EC$350 million; for 2024 it was EC$375 million; for 2025 it was EC$825 million (EC$420 million + $405 million for the New Hospital Project), and for 2026 it will be EC$450 million.
Government is yet to announce if it received any loan for the new hospital project as guided by the 2025 Budget Loan Authorisation Act.
According to the Act, the Government can raise money through loans, bonds, promissory notes or other financial instruments. Targeted lenders include the International Development Association, the International Bank for Reconstruction and Development, the Caribbean Development Bank (CDB), the Eastern Caribbean Central Bank (ECCB), the Regional Government Securities Market (RGSM), and other companies, banks and or financial institutions
All agreements signed under the Loan Authorisation Acts are expected to be tabled in Parliament. However, over the years, very few have been tabled. In October 2023, the government, with approval from Parliament, borrowed US$100 million from the Saudi Fund for Development (SFD). This was Grenada’s first loan from the SFD, but the terms and conditions for the agreement for the loan were not tabled in Parliament.
