Government told: Use additional revenue wisely

Black Immigrant Daily News

The content originally appeared on: Trinidad and Tobago Newsday

Greater San Fernando Chamber of Commerce president Kiran Singh. –

GREATER San Fernando Chamber of Commerce president Kiran Singh and Greater Chaguanas Chamber of Commerce president Richie Sookhai on Friday welcomed the news that TT received more revenue than expected for fiscal 2022. He urged Government to ensure that this revenue is used wisely.

In a statement on Thursday, the ministry said when Finance Minister Colm Imbert presented the 2022/2023 budget in Parliament on September 26, the revenue figures for fiscal 2022 were based on actual figures from October 1, 2021-August 31, 2022 and estimated figures for September 2022.

However, the Board of Inland Revenue has since finalised the actual revenue figures for fiscal 2022 and it has been determined that the total revenue in fiscal 2022 was $54.21 billion, which is $2.57 billion more than the revised estimate announced in September 2022, and $10.88 billion more than the original revenue estimate of $43.33 billion for fiscal 2022, made in October 2021.”

The ministry said, “With total expenditure for fiscal 2022 now estimated at $54.54 billion, the fiscal deficit for 2022 is now estimated at $329 million, which is less than 0.2 per cent of GDP (Gross Domestic Product), well below the international benchmark for fiscal deficits of three per cent of GDP.”

The ministry added,”In essence, we have achieved an almost balanced national budget in Fiscal 2022, something that has not occurred in TT since 2008, 14 years ago.”

Singh said, “The economy has not experienced positive growth for several years.”

He added, “The emergent fact of an almost balanced budget, not seen for several years, sends the right economic signals to local, regional and international investors.”

Singh said it appears that Imbert may have his sights set on a balanced budget next year and ending fiscal 2023 with a surplus.

He attributed the higher revenue in fiscal 2022 mainly to the ongoing war in Ukraine which increased global energy prices and TT benefitted from that.

Singh suggested this additional revenue be carefully dispensed throughout the economy.

Chaguanas Chamber of Industry and Commerce president Richie Sookhai. –

“The war (in Ukraine) will not last forever and the world will find alternative energy sources to survive these tumultuous times.”

Singh believed the four per cent wage increase being offered by the Chief Personnel Officer (CPO) to public sector workers could come under renewed pressure from the trade union movement as a result of the additional revenue for fiscal 2022

“The argument that salaries have not increased but the cost of living is on an escalating path is worrying to the wider public.” Singh said a consensus must be reached between Government and labour on this matter “or we may witness further falls in productivity levels from the public sector.”

Singh also suggested that strategies to provide a more comprehensive and efficient nationwide transport system be looked at with respect to the challenges the public are experiencing with respect to increased fuel prices.

Sookhai said the $329 million deficit for fiscal 2022 “is the lowest seen in over ten years.” He viewed the additional revenue as another affirmation of TT’s economic performance hinging on global energy prices and TT’s constant reliance on hydrocarbon exports.

Sookhai opined that had Government not taken steps to lower the fuel subsidy, the deficit could have been higher than the $329 million figure.

He suggested an assessment be done to determine whether the redirecting of funds from the subsidy to other projects had the desired benefit as opposed to not lowering the subsidy and maintaining cheaper fuel prices.

On public sector wage negotiations, Sookhai said, “While it is apparent that we will earn higher fiscal revenues once energy prices remain high, there is some breathing room for a wage increase. But a balance must be struck.”

He added it was important that increased wages to public sector workers must be accompanied by an increase in public sector productivity as a whole.

Singh said this would be achieved through a combination of improved worker performance and accompanying systems to accomplish simple tasks.

On Thursday, Minister in the Ministry of Finance Brian Manning said the increased revenue will not cause Government to make any radical departures from any of the measures announced in the budget by Imbert on September 26.

“No. We are cautiously optimistic and believe that the measures implemented are the most prudent at this time.”

On September 26, Imbert said Government will not be deviating from the four per cent wage increase offered by the CPO to public sector workers.

“We are firm in our view that our current offer of 4.0 per cent over the period 2014-2019 for the mainstream public service, although it will be a challenge to raise the required funds, is practical and equitable.”

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