By Breaking Belize News Staff: Prime Minister John Briceño has announced a sweeping package of cost-of-living relief measures, including $50 million in government spending cuts and a 50% reduction in ministerial allowances agreed to by government ministers. The measures also include expanded grocery and housing assistance, additional GST-free shopping days, continued electricity and fuel subsidies, and a review of possible income tax relief for middle-income earners.
Speaking during today’s sitting of the House of Representatives, Briceño acknowledged the increasing financial pressure on Belizean families, particularly from rising food, electricity, transportation and housing costs.
He cited figures from the Statistical Institute of Belize showing that inflation reached 4.4% in August 2026, compared to the same month last year, while average inflation for the first eight months of the year stood at 2.9%.
The Prime Minister blamed much of the increase on international developments, including the conflicts in Ukraine and the Middle East, rising fuel costs and tariffs imposed by the United States, which he said have increased the cost of imported goods.
However, he acknowledged that Belizeans expect their government to provide relief regardless of international circumstances.
$50 million in government spending cuts and 50% reduction in ministerial allowances
Briceño announced that his administration will reduce government expenditure by approximately $50 million to create room for additional relief measures.
Of that amount, $35 million will be cut from goods and services spending across government ministries, while another $15 million will be removed from the Capital II programme.
He explained that the goods and services reductions represent approximately 25% of ministries’ relevant non-wage, non-pension operating expenditure, although some contractual commitments cannot be reduced.
The cuts will require ministries to determine which purchases can be postponed and which activities can be deferred.
Briceño also announced that government ministers have agreed to reduce their ministerial allowances by 50%, challenging opposition parliamentarians to accept the same reduction.
“I’m challenging you to offer that 50%, since we are doing it, you are supposed to be doing the same,” Briceño told opposition members.
Additional $3 million for grocery assistance and $3 million for housing
The Prime Minister announced an additional $3 million for the Grocery Bag Programme over the next five months, through the end of the current fiscal year.
The money will be used to double the programme’s reach and provide assistance to more low-income households struggling to afford food.
Government will also make another $3 million available for housing assistance through elected area representatives.
The funding is intended to help constituents carry out minor home repairs and address urgent housing needs.
Briceño said both government and opposition area representatives will have access to the funds, but warned that proper accounting and receipts will be mandatory before additional allocations are released.
Another GST-free shopping weekend in January
Government will introduce an additional GST-free shopping weekend on January 23 and 24, 2027, to help families recover financially following Christmas spending.
The Prime Minister said the measure is intended to provide relief during January, when many families face financial difficulties after the holiday season.
The additional shopping weekend comes alongside two previously announced GST-free weekends scheduled for December 2026.
Briceño also revealed that government has ordered a review of the approximately 40 products included in the existing basic food basket.
The review will examine whether unhealthy products should be removed, healthier alternatives introduced and the basket expanded to include additional essential goods.
Recommendations are expected in the coming weeks or early next year, with adjustments targeted before April 1, 2027.
Income tax relief for middle-income earners being considered
Briceño revealed that Cabinet has directed the Belize Tax Service to review income and business tax arrangements, particularly for workers earning between $29,000 and $50,000 annually.
The Prime Minister said the government recognizes that many middle-income households are struggling to meet their financial obligations despite having regular employment.
Among the options under consideration are reducing the applicable personal income tax rate to 15% or increasing the income tax exemption threshold.
However, he stressed that no final decision has been made.
The Belize Tax Service has been instructed to examine the financial implications and present recommendations to Cabinet ahead of the next fiscal year.
More than $150 million in assistance for BEL
Briceño also disclosed that government assistance and prepayments to Belize Electricity Limited will exceed $150 million by the end of December.
He explained that BEL has been purchasing electricity at prices significantly higher than those charged to consumers, particularly because of rising diesel costs and interruptions in electricity supplies from Mexico.
According to the Prime Minister, electricity generated using rented diesel generators previously cost approximately 45 cents per kilowatt-hour but now costs more than 80 cents.
He said electricity purchased from Mexico can cost as much as $1 per kilowatt-hour during periods of high demand, while BEL’s selling rate remains around 45 cents.
Briceño maintained that allowing the full increase to be passed on to consumers would impose an unacceptable financial burden on households and businesses.
Government will therefore continue providing financial assistance while BEL expands investments in renewable energy and battery storage.
He outlined plans for additional solar generation beginning in early 2027, along with a 40-megawatt battery storage initiative supported by the World Bank.
The Prime Minister also highlighted the increase in the residential electricity GST exemption threshold from $100 to $200, which took effect September 1 and is expected to benefit more than 91,000 customers.
Fuel tax relief and transportation subsidies
The government will maintain its reductions in fuel taxes, which Briceño said are projected to cost approximately $60 million in forgone revenue during the current fiscal year.
He explained that reducing taxes on fuel helps limit transportation costs and the prices of goods delivered to stores and markets.
Government will also maintain subsidies for bus operators to prevent increases in passenger fares.
Additionally, Cabinet has approved a $20 million investment in new electric buses for the National Bus Company.
Briceño said the electric buses, which will feature air-conditioning and comfortable seating, are expected to operate at approximately 23% of the cost of comparable diesel buses, potentially allowing for lower transportation expenses.
Additional $30 million for municipalities
The Prime Minister further announced that government will provide an additional $30 million to municipalities for infrastructure improvements and employment creation.
The money will support projects such as street paving, drainage improvements, culvert installation and other community works.
He said portions of the funding have already been disbursed, with the remainder expected over the coming months.
Education, healthcare and small-business support
Briceño also highlighted existing programmes that he said help reduce household expenses.
These include a $2.6 million allocation for school feeding programmes benefiting approximately 20,000 students daily, more than $30 million in educational grants, $57 million for National Health Insurance and $52.5 million for the Central Medical Stores.
He also pointed to the elimination of fees at public hospitals and additional measures to ensure access to medicines.
The Prime Minister indicated that government is advancing new legislation aimed at supporting micro, small and medium-sized enterprises through simplified registration procedures, lower taxes and incentives for investment and employment.
Briceño maintained that the relief measures are designed to provide immediate assistance without undermining the government’s ability to finance essential public services.
He said government must balance the need to reduce household expenses with maintaining sufficient revenue for education, healthcare, infrastructure and other national priorities.
The post PM announces $50 million in spending cuts, 50% cut in ministers’ allowances and new cost-of-living relief measures appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Breaking Belize News Staff: Prime Minister John Briceño has announced a sweeping package of cost-of-living relief measures, including $50 million in government spending cuts and a 50% reduction in ministerial allowances agreed to by government ministers. The measures also include expanded grocery and housing assistance, additional GST-free shopping days, continued electricity and fuel subsidies,
The post PM announces $50 million in spending cuts, 50% cut in ministers’ allowances and new cost-of-living relief measures appeared first on Belize News and Opinion on www.breakingbelizenews.com.
