Finance Minister Dave Tancoo’s first national Budget under the United National Congress Government sets out to restore fiscal credibility and rebuild public trust — an attempt to reverse what he calls “a decade of destruction,” blending political messaging with economic priorities.
With the theme “T&T First: Building Economic Fairness through Accountable Fiscal Policies,” it aims to deliver immediate relief while championing fundamental reforms, signalling a pivotal shift in direction rather than incremental adjustments.
Outside Parliament, the atmosphere was electric, with UNC supporters gathered in support of Prime Minister Kamla Persad-Bissessar and her Cabinet. The energy outside contrasted with the sober tone of the Budget inside, where Tancoo’s rhetoric sought to match the optimism of his party’s base with the realities of the economic challenges ahead.
The headline measure — a $1 reduction in the price of Super gasoline — is designed to instantly capture popular appeal. Amid persistent inflation and cost-of-living pressures, the cut will be welcomed. Yet, it comes at a time when Government revenue remains fragile and energy earnings uncertain. Unless offset by stronger tax collection or energy receipts, this concession risks widening the deficit the new administration has inherited.
Still, Tancoo’s central narrative — rebuilding credibility and restoring fairness — resonates after years of fiscal strain. His proposed overhaul of the Inland Revenue Division and Customs and Excise signals a long-overdue attempt to modernise revenue collection and strengthen compliance. The repeal of the T&T Revenue Authority Act, however, places the burden squarely on the public service to deliver efficiency, where political will must now replace bureaucracy.
The Minister’s tone was unapologetically prosecutorial. Much of his presentation was devoted to exposing alleged mismanagement under the former People's National Movement government — from contract overruns to unaccounted billions in State enterprises. The creation of new oversight bodies — the Financial Oversight and Appropriations Committee (FOAC) and the Economic Resilience Council (ERC) — could strengthen governance, but concentrates significant power within the Prime Minister’s Office, raising questions about checks and balances.
On the economic front, Tancoo’s projections are cautiously optimistic. The Government expects growth to resume in 2026, anchored by a rebound in gas production to 3.2 billion cubic feet per day by 2027 and new partnerships with ExxonMobil and the United States on the Dragon gas field. The diversification thrust — into agriculture, manufacturing, and tourism — is strategically sound but long on ambition and short on implementation detail.
The commitment to replace the VAT system with a simplified sales tax could ease administrative burdens and reduce refund delays, but it demands careful calibration to avoid inflationary shocks and protect low-income consumers. Similarly, the pledge to end CEPEP and URP in favour of “better-paid full-time jobs,” is operationally complex in a labour market still struggling to absorb the unemployed.
The social sector promises — expanded CDAP, revived housing projects, and targeted youth training — reinforce the UNC’s “people-first” mantra. The emphasis on digital government, renewable energy, and global partnerships projects modernity and forward thinking. Yet there is little clarity on how these expansive initiatives will be financed within a constrained revenue base.
Overall, this Budget is a statement of political renewal rather than fiscal restraint. The underlying challenge transcends politics: transforming rhetoric into results. For all its ambition, the success of this Budget will depend on delivery in the streets, the offices, and the lives of ordinary citizens.
