Budget deficit falls to $2.7B

TRINIDAD AND TOBAGO’s budget deficit has been reduced to $2.7 billion. This was  disclosed yesterday by Prime Minister Patrick Manning during a post-Cabinet news conference at Whitehall.

Asked about the current state of the nation’s finances, Manning said: “We started off with a Budget deficit of $4.2 billion; we have been able to bring it down to $2.7 billion at this time.” The Prime Minister said while the performance was not as good as anticipated in terms of Public Sector Investment Programme (PSIP), or recurrent expenditure “the situation is a little more comfortable than we anticipated it would be at this time” but this was “not comfortable enough for the Minister of Finance.” Manning said it was “the first time the Government of Trinidad and Tobago has involved the politicians directly in the establishment of the priorities. When Ministries meet with the Minister of Finance and the Minister of Development, the teams are all headed by Ministers. So you are getting a political decision-making from the start and the establishment of the priorities therefore would be something that is in accordance with Government’s political agenda,” he stated.

Manning added that the final cuts in the Budget will be made for the first time by an eight-member Ministerial Committee headed by the Prime Minister, and not by civil servants.  He said this exercise would start next Wednesday. He was optimistic it would be concluded by Saturday. The Prime Minister also indicated that this strategy shows that the appointment of three junior finance ministers was not “overkill.”  Asked whether a date had been set for presentation of the 2003/2004 Budget, Manning replied: “ The answer is yes, but we are now trying to see if we can make that date before we announce it.” He added it was unnecessary for a National Enterprises Limited (NEL) tranche this year.