October 4, 2021

BUDGET BUSINESS: Ten Things To Know About The 2021|2022 National Budget

By Newsroom

The theme of this year’s budget presentation is “Resilience in a Global Pandemic” and saw Finance Minister Colm Imbert focusing on a major thrust towards digitization, advanced healthcare and improved infrastructure.

Here are ten things to know about the announcements made by Minister Imbert. 

1- The 2021|2022 National Budget is pegged on the assumption that oil and gas prices for 2022 are US$65/barrel and gas US$3.75 per mmbtu.

 

2- The Ministry of Education has received the largest portion of the pie, with an allocation of $6.89billion.

Health got the second largest allocation at $6.39billion. Here is a rundown of allocations:

3- Government is looking to dive deep into digitization, with hopes of transforming business operations. 

In 2022, government will establish for each citizen, a “digital ID account”, allowing each citizen to maneuver the digital realm more easily. TTConnect will become a more efficient and upgraded platform, providing e-government services.

To support the digitalization thrust,f ree internet access will be provided through TTWiFi at all schools, health centres and transport hubs

4- An additional $200 million has been allocted for Covid-19 relief.

Government has already allocated some $5billion to the pandemic.

5- Government will move ahead with liberalization of fuel prices.

However Minister Imbert says Kerosene and LPG will remain subsidized.

6- Some food items will be exempt from VAT come November.

These include:

Biscuits

Cooking oil

Canned vegetables

Cornflakes

Canned fish

Canned meat

Curry

Juice

Sausages

Bottled water

Pigtail

Minister Imbert said while he notes an overall increase in food prices, he expects prices will go back to normal when transit issues are resolved globally.

7- Imported battery-powered electric vehicles which are two years old or under will be exempt from customs duty, motor vehicle and VAT, starting January 2022.

This will be reviewed in two years’ time.

8- T&TEC rebate to increase, government to introduce ‘cash card’ for WASA customers

The Trinidad and Tobago Electricity Commission rebate will increase from 25 per cent to 30 per cent on bills $300 and lower.

As for the Water and Sewerage Authority, low-income and vulnerable groups will access subsidies for electricity and water through a “utility cash card” which will be made available to”once the prices for these services are regularised.”

9- Tobago received 4.5% allocation from the national budget-  $2.357 billion. 

This includes $2.075 billion for recurrent expenditure, $264 million for capital expenditure and $18 million for the URP programme. Government agencies will spend some $788 milliont in Tobago

Tobago to be given $50 million for Tobago Hotel and Tourism Support.

$30 million allocation for farmland development in Tobago.

 

10- Imbert: $50M in professional support for SMEs.

This is targeted specifically in the areas of accounting services, record keeping, training, management, inventory control and health and safety.

Program will be managed by the Ministry of Finance

Share