$$$B FAMILY BUDGET

These are some of the treats which Prime Minister Patrick Manning is expected to share when he delivers the 2006 Budget in the House of Representatives today. The Government is expected to spend more money than ever before (over $31 billion) with high oil prices in its favour. And it would attempt to spread some of that wealth through its Budget initiatives.

In an effort to increase disposable income and to counteract the effect of a declining currency (due to inflation), several measures aimed at providing tax relief would be announced, sources said. Sources cited a doubling of the personal allowance as well as a reduction in the marginal tax rate. The annual personal allowance is currently $25,000 for persons under 60 and $40,000 for persons over $60,000.

Sources said Government, concerned about the high cost of living, would also move to curb high food prices, possibly using mechanisms similar to those employed in the reduction of chicken prices. It would therefore include reducing import surcharges on a number of food items.

The Budget is expected to have several "major announcements."

Among these would be Government’s plan for BWIA.

Sources said Government plans to keep the airline flying.

Another "big" announcement would be a new tax regime for the petroleum sector.

The new regime, which was formulated with the help of an international expert, is expected to maximise government returns in this sector.

The Prime Minister has already stated that he would present several initiatives designed to deal with crime.

This Budget is coming at a time when there is tremendous dissatisfaction and anxiety over the crime situation.

This is expected to be a major part of the Budget presentation.

Sources stated that Government, concerned about the perception that URP is riddled with corruption and violence, is determined to break the back of this suspicion. Sources said URP is expected to be restructured using the CEPEP model of having the contractor source the labour and having the contractor entirely accountable for the project.

The theme of the Budget is the preservation of the family.

Sources said yesterday, however, that given the fact that crime is the number one issue, it could well turn out to be an anti-crime Budget, laden with national security initiatives.

Political pundits on the other hand, pointed out that coming relatively close to the end of its political term, it could well be an election Budget.

Asked what he wanted to see in today’s Budget Opposition Leader Basdeo Panday said, "The use of the oil windfall to improve the quality of life for the people of Trinidad and Tobago."

By 2 pm the country will know.