At the last Monday night forum of the Opposition United National Congress, its political leader, Kamla Persad-Bissessar, made some proposals and promises that are sure to be popular with the electorate, but which require more details and explanation.
Persad-Bissessar said if her party forms the government after the next general elections, which are due by next year, the UNC “will not increase water and electricity rates in this economic climate.”
She said under her leadership, the government will also not implement the property tax and she does not support the Government’s four per cent offer to public servants.
“We call on the Government to rescind that and give the workers a higher increase,” she said.
Quite interestingly, Persad-Bissessar said if her party wins the next general election, it “will move to lower taxes. We are against the introduction of any new taxes.”
In effect, Persad-Bissessar is proposing to continue the existing billion-dollar subsidies on the Water and Sewerage Authority and the Trinidad and Tobago Electricity Commission, while increasing the current administration’s four per cent offer to public servants. And she insists she will move to lower taxes and will not implement any new taxes.
She also said a UNC administration “would create 50,000 new jobs, without a single new tax” and proposed to make quality housing more affordable and accessible to young people.
The obvious question that arises is this: if a UNC government plans to increase the country’s recurrent expenditure, while not increasing the tax burden on the population, how would her administration fund what is sure to be a widening fiscal deficit?
Does she propose to fund future potential fiscal deficits by continuing the current administration’s policy of borrowing monies on the local and international capital markets?
Does she propose to continue the current administration’s accessing of the Heritage and Stabilisation Fund, whenever energy revenues decline?
Will a future UNC government sell state assets to pay public servants, fund the transfers and subsidies allocation, which accounts for more than half of recurrent expenditure, and service the country’s debt?
For the UNC leader’s proposals to be taken seriously, she must tell the population, in detail, how her government would fund the additional expenditure that her manifesto proposals/promises entail. To do otherwise would be irresponsible and would be an attempt to take advantage of simple-minded Trinbagonians, who are only interested in what their country can do for them.
It would also be unacceptable for Persad-Bissessar to claim that billions of dollars would be saved by cracking down on waste and corruption. With respect, the country has heard that one before.
The Opposition Leader’s package of election goodies must be viewed in the context of Minister of Finance Colm Imbert’s June 3 affidavit in the T&T Revenue Authority (TTRA) matter, which stated that “the next three years will be very challenging for the country from a revenue perspective.”
Imbert noted that if the TTRA is not fully operational in the shortest possible time, “the Government will soon be faced with very difficult choices in terms of maintaining current levels of subsidies, grants, free services and social programmes.”
This country deserves sober and realistic reflections on its current economic position and not wild and cynical proposals with no concrete idea of how these would be funded.