Trinidad &
Tobago (TT Mid-Year Review 2019) Ministry
of Finance states in its (May 3, 2019) Presentation of the
2019 Mid-Year Budget Review; “Total expenditure has been revised upwards to
$52.07 billion, an increase of approximately $300 million over the budgeted
2019 expenditure of $51.77 billion.” Whereas, on the said site, in its (Oct 1,
2018) Budget Statement 2019; Estimates of total expenditure is recorded at TT$55,582,977,415
with a foot note stating, “Development Programme Expenditure of $2,402,453,000
excludes the sum of $2,797,547,000 which is funded from the Infrastructure
Development fund.”
Turning back to (May 3, 2019) Presentation of
the 2019 Mid-Year Budget Review, states that, as an oil and gas producer,
heavily dependent on revenues from the oil and gas extractive industry, “The
oil price assumption is to be adjusted to US$60 per barrel of oil, down from
(Oct 1, 2018) Budget Statement 2019, when total revenue estimate was predicated
on an oil price of US$65 per barrel. But with gas prices averaging US$ 3.26 per
MMBtu over the period October 2018 – April 2019, the gas price assumption has been revised
upwards to US$3.00 per MMBtu from US$2.75 used in the original 2019 budget.”
The same report continues in its (May 3, 2019)
Presentation of the 2019 Mid-Year Budget Review; “These adjustments of lower
oil and higher gas prices moves total revenue, which was budgeted at $47.72
billion in the original 2019 budget, is now projected to fall by $221.0 million
to $47.50 billion.” Whereas, in its (Oct 1, 2018) Budget Statement 2019;
Estimates of total revenue is recorded at TT$48,163,885,000
with no further explanation for the $444 million variances. Noting that,
complex calculations using international and privately negotiated oil and gas
pricing, are constantly changing the computation of total revenue.
In the (May 3, 2019) Presentation of the 2019
Mid-Year Budget Review, it states that “A resultant overall fiscal deficit of
$4.57 billion is now shown as compared with $4.05 billion as in the original 2019
budget.” Although not a stick falsity, this is and can be very
misleading! Whilst using the Auditor General April 29, 2019 Reports, Cash based Accounting,
to compare like to like, NET SURPLUS/(DEFICIT) year on year system: The Actual
fiscal deficit as at the year ending Sep 30, 2018 is $3.74 billion as compared
with a net fiscal deficit of $7.42 billion for 2019 original estimate. And this
is estimated to increase in the Mid-Year supplementation of 2019 Appropriation
in the sum of $1,839,189,300 as further detailed below:
The
Governance category,
allocated TT$2.6Bn. 4.69% of total expenditure up by 11.50%, year on year for
the original 2019 budget, and additional
allocation through supplementation, monitors Moral Leadership and Ethical Behaviour.
·
The Judiciary will receive of $57.682 million for the payment of salaries
and arrears of salaries; for filling critical vacant positions; for arrears of
rent for 19 locations and for the renewal of subscription for software at the
Family Court;
·
The Service Commissions will receive $3 million for security services and
for assessment of senior officials in the public sector;
·
The Office of the Prime Minister will receive $12 million to meet the
operational costs of the Children’s Authority and for payment for children
assigned to private community residences;
·
The Ministry of Attorney General and Legal Affairs will receive $50
million for legal fees;
·
The Ministry of Communications will receive the sum of $10 million for
TTT for live broadcast productions;
·
The Public Sector Investment programme is being increased for:
o The Personnel Department in the
sum of $2 million to outfit a new building for the staff of the personnel
department;
The
Fiscal Policy category,
functioning on a budgetary allocation of TT$16.8Bn. 30.19% of total national
expenditure down by 4.70% year on year for the original 2019 budget, and additional allocation through
supplementation, monitors and reports on Public Money
and Public Debt.
·
The Ministry of Finance will receive $709 million to reimburse the
Infrastructure Development Fund, from which funds were used to finance the exit
cost associated with the Petroleum Company of Trinidad and Tobago. This will
ensure that adequate funding is available for our development programme for the
balance of the year;
·
The Comptroller of Accounts would receive $18 million for pensions and
gratuities for contract officers;
The
Economic Drivers
category with TT$2.5Bn. 4.53% of total national expenditure up by 30.94%, year
on year for the original 2019 budget.
·
The Ministry of Labour and Small Enterprise Development will receive
$39.3 million for the OJT programme;
·
The Ministry of Foreign and CARICOM Affairs will receive $1.6 million for
minor equipment purchases;
·
The Public Sector Investment programme is being increased for:
o the Ministry of Foreign and
CARICOM Affairs in the sum of $4.42 million for refurbishing our Embassy in
Washington and the High Commission in London.
The
Infrastructure Management
category, utilizing TT$11.5Bn. 20.74% of the nation’s total expenditure, up by 2.48%,
year on year for the original 2019 budget.
·
The Ministry of Public Utilities will receive $200 million to meet
outstanding payments to DESALCOTT for the supply of desalinated water;
·
The Ministry of Rural Development and Local Government will receive $39
million for salaries for municipal police officers; for the provision of water
trucking services and rent at the municipal corporations;
·
The Ministry of Works and Transport will receive $85.7 million for
daily-paid employees and for the charter-hire of a new high-speed passenger
vessel for the Seabridge;
·
The Public Sector Investment programme is being increased for:
o The Ministry of Housing and Urban
Development in the sum of $48 million to pay contractors for the refurbishment
of HDC apartments, for the Housing and Village Improvement Programme and for
works in greater Port-of-Spain;
The
Human Development category
is allocated TT$16.2Bn. 29.20% of the nation’s total expenditure, up by 3.56% year
on year for the original 2019 budget.
·
The Ministry of Education will receive $50 million for examination
invigilators; for school feeding caterers; and for examination fees for
students;
·
The Ministry of Social Development and Family Services will receive
$227.5 million to meet the increases in the senior citizens pensions as well as
for flood victims;
The
Resource Preservation
category comprises funds TT$5.9Bn. 10.66% of the nation’s total expenditure up
by 9.17% year on year for the original 2019 budget.
·
The Ministry of National
Security will receive $200 million for CCTV camera services, for janitorial
services, for the Civilian Conservation Corp programme and for the Strategic
Services Agency;
·
The Trinidad and Tobago Police
Service will receive $75 million for salaries and allowances for police
officers, for payment of utilities and rent and equipment acquisition.
·
The Public Sector Investment programme is being increased for:
o the Ministry of National Security
in the sum of $7 million to meet the maintenance cost of vessels utilized by
the Trinidad and Tobago Coast Guard;
Rationale
T.A.J &
Associates Company Limited uses this occasion
to comment on topics that have been covered, both academically and by the
mainstream media, to add its opinion and point out investment opportunity, not
to invoke any social action.
