PM Manning: $31B Budget on Sept 5

In making the disclosure to journalists after a pre-Budget planning session yesterday by the Cabinet and senior officials from all Government ministries at the Crowne Plaza Hotel, the Prime Minister categorically denied reports alleging that Government was engaging in a wild spending-spree, and was being brought to book by the International Monetary Fund (IMF).  

Manning said the 2005/2006 Budget is likely to be about $31 billion or higher, and Government has "targetted September 5 for the Budget, and only time will tell whether we will make that deadline or not." Sources have said that Budget Day could be September 26 but this is subject to change.

During yesterday’s closed door session, Manning requested all Government ministries to submit their full Budget proposals to the Finance Ministry by August 26.

The Prime Minister explained that the reason the upcoming Budget will exceed last year’s $27 billion budget is because "our capacity in the public sector has increased."

He recalled that 13 companies (some new, some old, some with altered mandates, but all with improved capacities) have been either formed or identified to assist in the execution of various development programmes in Trinidad and Tobago.

Manning said papers are currently being prepared by the Finance Ministry to assist the ability of these companies to function and execute their mandates. He was optimistic the process would be completed by month’s end.

"As that capacity increases, so our ability to deliver a development programme will also increase and so it will require a higher level of expenditure. We don’t have to borrow to do it. The money is there," he added.

On reports alleging that the IMF was cautioning Government about engaging in a spending spree, Manning said, "I don’t know that the (IMF Article IV Consultation) report said that at all. I don’t know where wild (spending-spree) came in. The level of governmental expenditure has increased. It has increased consistent with our level of revenue increase. That’s the reality of the situation. There are some people who will always get scared if your level of expenditure increases."

Observing that there is no shortage of persons in TT "who can only say the negative" or always want to "caution and warn" and not care about how well-intentioned the Government might be, the Prime Minister declared that it is "the Government’s responsibility to utilise the resources available to us and available to the State, to the best of our ability and in the most efficient manner. That’s what we’re doing and if it requires an increase in expenditure, as it undoubtedly does, we do that."

The Prime Minister said Junior Finance Minister Conrad Enill would make a more detailed statement to the press about Government’s recent Article IV consultation with the IMF.