The government is planning to commit about EC$500 million to capital spending projects over the next three years, the premier has said.
The planned investment comes as the administration forecasts revenues of more than $700m a year over the medium term, driven largely by strong .ai receipts.
Premier Cora Richardson Hodge announced the upcoming spending measure during a government press conference on 7 September.
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She said a significant share will be spent on the Clayton J Lloyd International Airport expansion programme – the current focus of which is the runway extension.
The remainder will support other infrastructure projects, along with resilience, health, education, social development and economic enabling priorities, she said.
Economic plan
Details of the capital spending will be contained within the Medium Term Economic and Fiscal Plan 2027-2029, which is being finalised and will “shortly” be tabled before the Anguilla House of Assembly.
“The framework looks beyond the annual budget and sets out how government expects revenues, expenditure, capital investment, debt, liquidity and savings to evolve over the coming years,” the premier said.
She said the starting point is encouraging, as revenue performance in 2026 has been “considerably stronger” than anticipated, largely reflecting the strength of .ai receipts.
“While government still expects an overall deficit for the year once debt amortisation is taken into account, that deficit is now expected to be materially lower than originally projected,” the premier said.
The central outlook currently points to annual government revenues remaining above $700m over the medium term, while expenditure is expected to moderate.
“This represents a considerably stronger underlying fiscal position than Anguilla has historically been accustomed to,” she said.
Close management
Richardson Hodge said that, while positive, the “headline balances” should not be viewed as unrestricted fiscal space.
The government must continue to meet debt repayments, maintain adequate liquid reserves, finance capital investment and set aside a share of exceptional revenues for long-term savings, she explained.
Meanwhile, recurrent expenditure will also require close management, she said.
“Compensation is expected to absorb an increasing share of recurrent spending over the period, reaching around half of recurrent expenditure by the end of the current medium-term planning horizon.
This comes after the recent establishment of updated public service compensation following an independent review.
“This means government must continue to manage the growth of the public service establishment and other permanent commitments carefully,” the premier said.
.ai revenue
The outlook remains significantly influenced by revenue generated from .ai domain registrations, which is expected to account for about half of the government’s revenue in the near term, the premier said.
“Those receipts provide Anguilla with an exceptional opportunity to invest and save, but they also create a concentration risk which government must manage prudently,” she added.
“For that reason, the framework is built around a clear principle – exceptional revenues should not automatically become permanent expenditure.
“A meaningful share must instead be used to strengthen liquidity, support strategic investment, and build long-term savings.”
Richardson Hodge concluded by saying that debt and debt service ratios are expected to remain comfortably within government’s fiscal sustainability limits.
Liquidity will require close attention, she said, while economic growth is expected to remain modest during the airport expansion before strengthening over the medium term.
“Overall, the medium-term picture is one of stronger revenues, a very significant investment programme, and improved fiscal capacity – but also the need for continued discipline,” she said.
