The political leader of the Progressive Democratic Patriots Watson Duke is accusing Chief Secretary Farley Augustine of being out of touch with the real needs of Tobago’s economy and the real struggle of those living on the island.
Following the Tobago House of Assembly’s $3.95 billion budget presentation on Monday, Duke, in a press conference yesterday morning questioned when the “real benefits” for critical sectors like the business community and infrastructure industry be released.
Duke said, “You are getting $7.5 billion for the last three years and for the last three years the only revenue the THA generated was less than $15 million. It means we have failed as a country, we have failed. That is why I am sick in the stomach. This budget doesn’t need an intelligent analysis, just a glance alone would tell you they did it just because they had to.”
Duke rubbished the budget as nonsense adding that Augustine is incapable of unlocking the assembly’s true potential.
He said, “Here we have so much potential and it gives me a sick feeling to review a budget from people I had so much hope in only to recognise they are using words to blindside Tobagonians and doing gymnastics with figures hoping the real issues are not looked at.”
Meanwhile, the Tobago business community is worried that the THA seems comfortable with spending 20 times the revenue it hopes to generate in 2025.
In response to the budget, Martin George, head of the Tobago Chamber, noted that Tobago’s population represents about 5.07 per cent of the national population.
He said historically, Tobago’s budget allocation should range from 4.03 per cent to 6.9 per cent of the national budget.
He calculated that based on the Chief Secretary’s estimate of a $65 billion national budget, Tobago’s share should be a more realistic budget of $3.3 billion.
George noted a positive reduction in the proportion of the budget allocated to recurrent expenditure from 88 per cent to 71 per cent. Additionally, the increased allocation for development projects, totalling over $1 billion, he said, is welcomed, provided these projects are managed effectively.
However, George said the major concern remains the low rate of revenue generation compared to expenditure.
With a projected income of $216 million, Tobago is embarking on an unsustainable practice.
“So you are basically spending about 20 times more than you are earning. I think any householder, anybody you know running a little household budget, or you know managing your own finances will know that any such situation is unsustainable and in an economic scenario and a macro-economic scenario. It is wholly unsustainable for you to be spending about almost 20 times more than you are earning,” he said.
George spoke of the need for creative and innovative ways to increase Tobago’s earning capacity. One suggestion is the immediate repeal of the Foreign Investment Act to allow direct foreign investment into Tobago.
“One of the ways we as a chamber have suggested is the immediate and unconditional repeal of the Foreign Investment Act which will allow direct foreign investment that comes straight into Tobago. And this is actually going to help Trinidad and Tobago because we are in a forex crisis in T&T. We are struggling and scraping and scrunting for foreign exchange,” he explained.
He said repealing this act could lead to a flood of foreign investment, bolstering both Tobago’s and Trinidad’s economies.