While the Ministry of Finance has largely allocated expenditure in anticipation of increased salaries or potential salary increases, the 2025 Budget will feature another reduction for funding in the food card programme.
Minister of Finance, Colm Imbert, said while the Government has made “a provisional offer” of 5 per cent to public servants in the 2025 budget, the allocations in the Ministry were not fixed to that figure.
“The negotiations are going to commence. We are not dictators,” said Minister Imbert in response to a question from Couva South MP Rudranath Indarsingh in the Standing Finance Committee meeting on Tuesday.
“We have to weigh the outcome of the negotiations before we quantify the amount owed, and that will be dealt with in the mid-year budget review because we are not dictators, “ He continued, “It’s a collective bargaining process, as you very well know, an instruction or collective bargaining, I have authorised the CPO to commence negotiations with the unions.”
According to the budget document Draft Estimates of Expenditure 2025, which details recurrent expenditure for the current financial year on the Ministry of Finance Website, the draft estimate for the Food Price Support Programme for 2025 is $130 million, which was $39 million less than the initial estimate of $169 million from the 2024 fiscal year estimate or $20 million less than the revised estimate of $150m.
In 2023, the actual expenditure for the item, which is managed by the Ministry of Social Development but listed under the Ministry of Finance, was $147.04 million.
However, despite this reduction, Finance Minister Colm Imbert was adamant that it did not mean fewer people would receive food cards in the upcoming fiscal year.
During the Standing Finance Committee sitting on Monday, Minister Imbert was asked about the reduction by Opposition MP Ravi Ratiram.
“The food card programme is managed by the Ministry of Social Development, but the allocation is in our ministry, and we just send them the money,” said Imbert, adding, “We are still looking at the Market Box Initiative, which we expect would reduce the actual spend, because what we found is that the market box programme has resulted in tremendous savings and efficiencies in public expenditure in this area.”
Launched on November 30, 2020, in the middle of the COVID-19 pandemic, the Market Box Initiative, is a drive by the National Agricultural Marketing and Development Corporation (Namdevco) to distribute agricultural produce to thousands of people.
At launch it was intended to deliver 1,300 packages per day to the families of 79,000 students who had been registered under the School Feeding Programme.
This also was not the first time that the funding to the Food Card Programme was slashed. During Budget 2023, the programme also saw an $8 million decrease in funding as Imbert again favoured the market box programme.
However, prior to the budget, some commentators had called for an increase in food card allocations given the significant rise in food prices. Economist Dr. Vaalmikki Arjoon was one such, as he noted that on average food prices would have gone up 30.4 per cent from July 2019 to July 2024 and as such the food card would not be able to purchase the same amount of groceries it would have previously.
The Estimates of Expenditure document listed the overall allocation for salaries and cost of living allowances in the Ministry of Finance at $226.05 million for fiscal 2025, $9.9 million more than the revised estimate of $216.06 million for the 2024 fiscal year. The initial estimate for this item was $255.20 million however, the revised estimate was closer to the 2023 actual expenditure of $217,667,041.
The Minister regularly explained this drop in various sub-items as he pointed to the slow bureacratic process at the Public Service Commission with regard to addressing staffing issues.
When asked about a $9.5 million drop in the allocation for salaries for Customs officers in the document, Imbert noted, “I can explain in Customs, because Customs is still subject to the Public Service Commission in terms of promotion and appointment of staff. We have all sorts of issues with respect to acting allowances and increments, so that at the beginning of the year, a provision was made assuming that a lot of the persons who are acting positions would be permanently appointed to these positions. But that did not happen, because, again, as I said, we are subject to the Public Service Commission, which is notoriously slow in filling vacancies, and therefore we spend $64(million),500 . We’ve been a little more practical this year, and we put $67 million on the assumption that we will sort out a significant amount by the year-end.”
He noted that the allocation would be adjusted if the staffing at Customs is affected by the establishment of the Trinidad and Tobago Revenue Authority.
Several officers have been offered a position at the TTRA, on the condition they resign from Customs.
“The TTRA is mobilising. It’s recruiting, it’s fleshing out this organisation structure and so on. It’s dealing with the persons who applied for a transfer and so on. There would still be an enforcement division of public servants. So what the ministry officials did is provide for the full year, if around the mid-year, we do not need this full amount, because the TTRA is fully operational, which we expect it will be by the mid-year, then this amount will be adjusted. This will be adjusted,” he said.
There however was an increase in terms of the allocation for the Central Tenders Board, which had been transferred into the Ministry.
“The Central Tenders Board and staff have been transferred into the ministry, and therefore the personnel expenditure for the ministry, for 2025 will be more than it was before. And in addition, we have made allowance for the payment of arrears of acting allowances and increments in 2025 so that’s why it’s more in 2025 this is anticipation, yeah, and the 2024 figure was in anticipation that CTB would be transferred early in the fiscal year. Last year it was transferred a little late in the fiscal year.
He however revealed that the transfer allowed the government to save money as a $12 million allocation had been set aside for Voluntary Separation packages for Central Tenders Board workers, however, this was not needed as a result of the transfer.
Minister Imbert said the staff had largely been assigned to the Office of Procurement owing to their experience in that field.