Current estimates have put the Federation's public debt at EC$ 3 billion as at 2009, which Prime Minister and Minister of Finance Hon. Dr. Denzil Douglas says is not as a result of excessive borrowing from international donors but of arrears accumulated locally and regionally. Dr. Douglas delivered the 2010 Budget Address on March 23 outlining the fiscal review of the previous year and forecasting government financial plans and policies for 2010. He said that by employing a Debt Management Strategy, his administration had been able to substantially reduce the debt to GDP ratio over the years.

"We have decelerated the rate of growth of the stock of public debt to almost zero. This is an achievement of which every citizen should be proud. But the road to acceptable levels of debt is still long and arduous, and filled with many obstacles and risk. We must, therefore, in this budget, and in future budgets, give due prominence and priority to debt reduction as a critical objective," he said.

Opposition Leader Hon. Mark Brantley painted a different picture during his follow-up Budget debate presentation. According to the attorney, "Our debt is out of control."
"Listening to the Minister of Finance it must now be clear to all that previous bellicose comments emanating from him dismissing the debt have come back to haunt us all," he said referring to the PM's infamous declaration, "Public Debt me a**!"

Brantley continued, "It cannot now be seriously doubted that the debt of our Nation is a very real threat to our continued viability. Perhaps part of our problem has been the lack of honesty on this issue. For too long the Government has pretended either that the debt did not matter or that it was not an impediment to the nation's growth and development."

The Nevisian parliamentarian said St. Kitts and Nevis has the "dubious classification as being the second most heavily indebted nation in the world" and the debt service obligation as expressed in the 2010 Budget is EC$182 million. This, he said, meant the nation was spending more on debt servicing per annum than was being spent on National Security, Education, Agriculture and Tourism combined.

Contrary to Dr. Douglas' explanation of the debt being incurred by funding national development programs and projects, Brantley blamed government's spending practices for the increasing level of public debt.

"The rapid growth and size of the National Debt is a matter for serious concern and is not to be treated flippantly as though it is of no relevance. It is the result of poor economic and financial planning. The Government embarked on reckless spending and borrowing programs… It must be well known to all that St. Kitts and Nevis is perhaps one hurricane away from bankruptcy. We are living in perilous times."
Other members of the opposition benches also spoke to the issue of national debt being cause for great concern. The PM said in response that the opposition members were attempting to mislead the populace by blaming the government for a situation that they know the government "should not be blamed for".