AndreaPerez-Sobers
Senior multimedia reporter
Trinidad and Tobago’s fiscal position strengthened during the first seven months of the 2026 financial year, with the Central Government recording a smaller overall deficit despite lower energy revenues, as stronger collections from non-energy sources helped offset the decline.
The latest Central Bank Economic DataPack for June 2026, using figures from the Ministry of Finance, showed the overall fiscal deficit narrowed to $1.72 billion during the October 2025 to April 2026 period, an improvement from the $3.86 billion deficit recorded in the corresponding period a year earlier.
The current account deficit also improved, falling to $1.02 billion compared with $1.47 billion in the same period of the previous fiscal year.
Government revenue increased during the period, reaching $30.06 billion, up from $28.19 billion a year earlier. The increase came largely from stronger non-energy revenue, which climbed to $21.59 billion from $18.24 billion.
Energy revenue, however, weakened significantly.
Collections from the energy sector declined to $8.40 billion between October 2025 and April 2026, compared with $9.93 billion during the corresponding period in the previous fiscal year, reflecting continued volatility in the sector’s contribution to Government finances.
Tax revenue over the seven-month period fell to $5.49 billion from $7.39 billion, while non-tax revenue increased to $2.91 billion from $2.54 billion. Revenue from taxes on goods and services rose to $6.55 billion, compared with $5.97 billion previously, while international trade taxes also edged higher to $1.58 billion from $1.50 billion.
Government expenditure remained broadly stable.
Total spending stood at $31.78 billion, slightly below the $32.05 billion recorded during the same period a year earlier. Current expenditure increased to $31.01 billion from $29.64 billion, while capital expenditure and net lending declined sharply to $775.7 million, compared with $2.41 billion in the previous year.
Transfers and subsidies remained the largest spending category, increasing to $18.13 billion from $17.30 billion. Wages and salaries also rose to $5.83 billion, while spending on goods and services fell to $3.18 billion from $3.44 billion. Interest payments increased to $3.87 billion, up from $3.35 billion.
Despite the improvement in the headline fiscal balance, the non-energy fiscal deficit remained substantial.
The deficit excluding energy revenue stood at $10.12 billion during the October 2025 to April 2026 period, an improvement from $13.79 billion a year earlier, underscoring the continued dependence of public finances on hydrocarbon earnings.
The Central Bank data also showed the Government recorded a primary surplus of $2.14 billion, compared with a primary deficit of $510.2 million in the same period of the previous fiscal year, indicating that before interest payments the fiscal position strengthened considerably.
Meanwhile, public debt continued to edge higher.
Adjusted general government debt stood at $148.1 billion, or 84.7 per cent of GDP. Central government domestic debt totalled $85.95 billion, while external debt stood at $39.11 billion.
