Trinidad and Tobago is now operating on a $14.533 billion budget deficit, as was revealed by Finance Minister Colm Imbert during Friday’s Mid-Year budget review in the House of Representatives.

The major decline in revenue, of $9.2 billion, comes as a result of massive halts in economic activity due to the COVID-19 pandemic, coupled with the decline in oil and gas prices on the global market. 

Government expenditure now stands at $53.107 billion. 

 While the figures look worrying, Minister Imbert said it was anticipated given the state of affairs over the last three months. 

He predicted that while GDP may decline by 2.4% this year, 2021 looks promising, with government expecting rebound growth of 4.7%

Meanwhile, the Trinidad and Tobago Chamber of Commerce, in response to Minister Imbert’s presentation, reignited a call for Parliamentarians to move forward with the establishment of the Trinidad and Tobago Revneue Authority.

The TTRA is long overdue but once implemented it will have the effect of widening the tax net to reduce the burden upon the compliant. We again call on the Opposition to act in the best interest of the country,” it said in a statement.

In addition, based on the revision of oil prices from US$60 per barrel to US$25 and the reduction of the budgeted gas price to US$1.80 per MMbtu from $3.00,  the Chamber believes the projected deficited laid out by Imbert may be understated.

“The outlook to rebound to 4.7% economic growth levels in 2021 is aggressive in comparison to historical low growth trends, projected energy prices, sluggish global demand, along with containment measures that may have to remain in place until a vaccine is found for COVID-19,” it added.