Economist Dr Roger Hosein is calling on Finance Minister Colm Imbert to be honest and clear about the real reason why international rating agency Moody's Investor Services downgraded T&T last week.
Noting that it was T&T's second downgrade in a row by Moody's the University of the West Indies senior lecturer said: "The downgrade is more than a reflection in the decrease in oil prices, it is also a reflection of the decrease in gas prices and the fall in the volume of production in these commodities.
"However, the Minister of Finance needs to be honest and clear that it is also part of the high level of Government expenditure built up after 2002. The high level of Government expenditure built up after 2002 led to a unsustainable momentum in the economy."
On Friday, Moody's downgraded T&T's Government bonds from Baa2 to Baa3 and assigned the country a negative outlook. The New York ratings agency said despite recent fiscal consolidation efforts, low oil and gas prices will continue to negatively and materially undermine the country's economic and government financial strength at least through 2018.
Imbert in an immediate reaction told the Guardian the downgrade was one of the effects of the collapse of oil prices and the precarious energy environment.
It followed a similar action in April 2015, when the agency downgraded T&T's government bond rating and issuer rating to Baa2 from Baa1 and changed the outlook to negative from stable. Hosein said as a consequence of the high build up of Government expenditure over the years, the country is unable to support this "illusionary standard of living" citizens have been living on in the past. "We are now seeing the consequential fallout from a mix match of expenditure and revenue," he said.