Finance Minister Davendranath Tancoo is set to deliver Trinidad and Tobago’s 2025/2026 national budget today in the House of Representatives, marking his first budget presentation since his appointment following the April 28 general election. This budget is also the first for Prime Minister Kamla Persad-Bissessar in her second term, as the United National Congress (UNC) government faces the challenge of balancing economic realities with campaign promises. The budget comes against a backdrop of economic uncertainty, with Standard & Poor’s (S&P) recently downgrading the country’s credit outlook from stable to negative, citing eroded fiscal and external buffers, limited GDP growth, and ineffective fiscal management. S&P’s report highlighted the cancellation of key projects, including access to Venezuelan natural gas reserves and the proposed Revenue Authority, as factors contributing to the downgrade. Economists have expressed low optimism about the government’s ability to implement meaningful reforms within S&P’s 6-24 month timeframe to avoid further downgrades. The budget is also being framed against low global oil prices, with West Texas Intermediate and Brent crude trading at $59.80 and $72.73 per barrel, respectively. Economists Marlene Attzs and Conrad Enill have advised the government to temper public expectations and adopt a disciplined, medium-term fiscal framework. Key election promises, such as creating 50,000 new jobs and a 10% wage increase for public servants, will be scrutinized as the government navigates these economic challenges. The budget debate is expected to conclude by October 29, with the final budget set to be sent to President Christine Kangaloo for assent.
High expectations in first budget of UNC government – Over to you, Mr Tancoo
