Senior political reporter
Finance Minister Colm Imbert yesterday delivered a budget package with salary increases and other sweeteners for public servants in an overall $59.7 billion package.
A five per cent wage increase offer for public servants, $2 minimum wage hike for public sector workers from November, VAT refunds coming, tax and NIS amnesties—and three entities shortlisted for the Guaracara refinery—were included in a package which some dubbed “an election budget.”
Loaded with optimism and positives, the Budget will apply to the period taking T&T up to the end of the next fiscal year ending September 2025—a period when general election is due.
Imbert gave a longer-than-usual presentation—five hours and 11 minutes—during which he positively detailed the PNM Government’s achievements in all sectors over the term.
Imbert added, “This 2025 Budget stands as a testament to our nation’s resilience amid the formidable challenges faced over the past nine years. We’ve come a long way since 2015, weathered many shocks, and proven that we are up to the task of governing this country effectively and equitably.
“Contrary to rumour, our economic future is assured, and we simply have to navigate a few challenging years before we reap the rewards of the work being done in both the oil and non-oil sectors.”
Not6ing the theme, “Steadfast and Resolute - Forging Pathways to Prosperity,” he said, “This theme underscores our commitment to fostering a diversified and resilient economy that can withstand external shocks and capitalise on emerging opportunities in the global marketplace.”
Amid a backdrop of Opposition protesters outside the Red House, Imbert’s $59.741 billion budget was slightly more than the 2024 figure of $59.209B.
The 2025 Budget was based on an oil price of US$77.80 and natural gas price of US$3.59 per mmbtu. Noting the volatility of energy prices, he said the 2025 basis was lower than the 2024 Budget basis of US$85 and US$5.
Projected revenue from the 2025 plan is $54.224B and the projected deficit is $5.517B.
The top allocation went to Health at $7.57B. Education was next with a $7.51B allocation, including a special purposes allocation for urgent school repairs.
The Tobago House of Assembly received $2.599B out of the $3.956B it had requested.
Wage hike, union offer...
Among announcements, Imbert said it was recognised that an increase to the minimum wage —while bringing comfort to those at the bottom of the income scale — can also create hardship for small businesses.
“We’ve, therefore, decided to not make any further increase in the national minimum wage at this time, especially since the last increase, just last year, was of the order of 17 per cent, and SMEs are still grappling with the challenge of managing that increase,” he said.
“However, the Government, as the largest single employer of people, is acutely aware of the difficulties endured by persons earning the minimum wage.”
While Government didn’t wish to place additional stress on the small business sector, while continuing to review the national minimum wage for an increase in subsequent years, he said the minimum wage earned by public sector employees would be increased from $20.50 an hour to $22.50 an hour, an increase of $2 per hour.
This increase benefits 5,100 workers at MTS, 6,900 workers in CEPEP and 6,200 in URP, among other public sector workers earning minimum wage.
Imbert said it would give security guards as much as $500 monthly of additional tax-free income and MTS janitorial staff will earn an additional $340 monthly. The increase will be effective from November 1st, 2024.
Imbert also said Government recognised that the four per cent offered to public sector workers for 2014-19 wasn’t large but it was all Government could have afforded then. It cost Government over $1 billion in backpay and increased recurrent annual expenditure by hundreds of millions of dollars.
However, he said the PSA and NUGFW’s refusal of that offer cannot be allowed to delay negotiations for the next bargaining period with other public sector trade unions, who represent more workers.
“I have today instructed the Chief Personnel Officer to make the necessary preparations to commence negotiations with those trade unions who accepted the previous four per cent offer, for the period January 2020 to December 2022. The Government, even in the face of our challenging financial circumstances, has decided to offer an increase of 5 per cent.”
That’s estimated to cost an additional $475 million annually in recurrent expenditure, with backpay up to the end of 2024 estimated at over $1B, he said.
“It will be difficult to find the money to make these payments, but we think it’s only fair and just,” he said, urging the PSA and NUGFW to accept the first four per cent.
Promises to hike grants
Imbert also promised, “We’re determined to expand our capacity to serve and to capitalise on the socio-economic advancements that lie ahead, ensuring that when re-elected, we’ll carry forward the momentum of progress. Government currently spends over $5 billion on social grants every year and at this time, because of our financial situation, it’s not possible to increase any grants. However, within a few years, as the cross border gas starts to flow, and revenues increase, we’ll improve the situation for the most vulnerable.”
Imbert said Government is aware that there is a significant sum of VAT refunds outstanding. He said the ministry intends once again to issue interest-bearing VAT bonds in fiscal 2025 in the sum of $3 billion with a target date for issuance of January 31, 2025.
“However, on this occasion, these bonds will be issued in a manner that does not create difficulties or shortages in the local foreign exchange market. Small and medium enterprises who are owed refunds will be paid in cash by December 31,” he noted.
He also promised that an online payment solution for property tax will be implemented on/before October 31, allowing bank transfers and card payments.
Boat, planes, drones coming
Touching on the troubling area of escalating crime and criminal activity, Imbert said, “We understand that behind every statistic is a person, a family, a community that deserves to feel safe and secure.”
Initiatives announced included the purchase of four Patrol Launches and eight high-speed Interceptors for the Coast Guard to aid in border security and safety of life at sea; two search and rescue/surveillance fixed-wing aircraft; and drones to assist surveillance and search and rescue.
He said in 2025, Immigration will also begin work on an Automated Fingerprint Identification System (AFIS) to strengthen border management and improve national security. This will require legislation for which Opposition support is needed. Immigration will also embark on the conversion from machine-readable passports to ePassports.
He said the Special Anti-Crime Operation Unit will immediately assume responsibility for the elimination and disruption of home/business place invasion. The TTPS’ fleet will also be expanded by 2,000 vehicles over the next three years. A further 150 one-piece rugged Electronic Monitoring devices with highly “cut-proof” straps will be acquired for the detection of offenders.
3 for refinery, Clico shares divestment
The Budget included revenue-generating projects, among them the sale of the Government’s 49 per cent shareholding in the Colonial Life Insurance Company (CLICO).
“It’s no longer considered to be of strategic importance to the Government and its divestment will earn several billion dollars in revenue to see us through the financial difficulties of the next few years,” Imbert said, adding that Government is still owed over at least a further $13B from the bailout arrangement.
Imbert said a third procurement process to get bidders for the Petrotrin refinery obtained new potential bidders and the parties who participated in the previous two attempts. Scotia Capital (USA) Inc. was engaged to manage the process.
Three proposals were found by Scotia and the Evaluation Committee to be worthy of further consideration from the following entities which Cabinet agreed to shortlist: (1) CRO Consortium, a locally based consortium comprising three companies, DR Commodities Limited, Chemie-Tech and Ocala; (2) INCA Energy LLC, a company based in the USA; and (3) Oando PLC, a Nigeria- based company.
“A formal selective Request for Proposals process will now be initiated to determine the winner amongst these three companies, with a view to restarting the refinery, if found feasible,” he said.
TTEC rate hike on hold
Imbert said the Regulated Industries Commission’s determination for T&TEC rates is still being considered by Government.
Imbert pronounced “Mission Accomplished” on Atlantic LNG restructuring. He said the new revenue-sharing arrangements that arise from this and the new pricing formula for natural gas will yield substantially enhanced revenues for T&T permanently.
He gave an optimistic account of the domestic economy, detailing strong financial buffers, including US$6.1B in the Heritage and Stabilisation Fund and citing three consecutive years of growth. He guaranteed T&T wouldn’t go to the IMF “under this Government.”
“Our economy is now growing, and we simply have to be careful and spend money wisely, and live within our means until 2027, when the cross-border gas is expected to flow. Over the last nine years, we’ve demonstrated we can manage extremely difficult financial situations, and meet all our obligations while providing support to all citizens, and we’ll do it again.”
Imbert lauded Prime Minister Dr Keith Rowley and Energy Minister Stuart Young’s work with energy sector challenges and he slammed “naysayers.”
Imbert’s address was punctuated by remarks and murmurs from the Opposition. Debate continues at 10 am on Friday with Opposition Leader Kamla Persad- Bissessar’s reply.
FISCAL MEASURES & NEW PLANS
• Tax amnesty and amnesty on NIS payments from October 1 to December 31, 2024.
• Sale or lease of Magdalena Grand Hotel
• Request for proposals to develop a new 5-star internationally branded resort hotel on the Government-owned Buccoo Estate in Tobago. This project is expected to be on the scale of the previously proposed Sandals Hotel.
• Request for proposals to develop a yachting marina in Lowlands, Tobago, just southwest of the Petit Trou Lagoon, on lands currently being acquired by
the Government from the Plantations Estate.
• $50m initiative to uplift at -risk communities focusing on ex-convicts, underemployed and unemployed persons under the threshold of a full certificate at the CSEC level; Small/micro-entrepreneurs; Crime victims
• GATE programme undergoing several enhancements during the fourth quarter of 2024, including assessing approved students’ ability to contribute to tuition costs.
• $1,000 book grant continues in 2025
• Online Numeracy Programme for Adults
• National Digital Literacy Project
• Digital Literacy Certification for Students
* Solar-powered sustainability project in secondary schools
* Agriculture Internship Programme
* CSEC Remedial Mathematics Programme
* Remedial classes continue; ebook platform by next June.
* Increased price paid for starter houses in the Housing and Village Improvement Programme to $200,000.
* Exempting all sporting equipment from taxes and duty, with the exception of clothing from 2025
* Couva Hospital designated early-detection centre for dengue; PoS Hospital Central Block opening March 2025.
* Transfer pricing law coming
* Approval for CAL to buy more planes for North/South America routes.
* Mayaro-Manzanilla highway completion in January; 100 new road paving projects small contractors to be increased to 50.
* Water booster stations, wells to improve supply for thousands.
* Increased deposit insurance from today
* More land settlement sites, 3,000 street lights, youth/agricultural programmes.