Prime Minister Kamla Persad-Bissessar S.C. says the current Government inherited an over $4 billion deficit for May from the previous administration, and is projecting a deficit of $11 billion for fiscal 2025. This as she defended the move to repeal the Trinidad and Tobago Revenue Authority Act, and strengthen the Board of Inland Revenue.
“Now it’s not about maxing out and running on fumes. They don’t even have the fumes. They did not even leave fumes. Left us with over $4 billion in a deficit situation.”
That’s the bleak picture of Trinidad and Tobago’s economy, painted by Prime Minister Kamla Persad-Bissessar, noting that Government will soon undertake a mid-year budget review to assess the state of the economy.
“It is estimated that the cash overflow will be around $6.3 billion, resulting in a cash deficit position of $3.92 billion this month. Worse, if all the unpaid checks in the system were presented for payment, this would add a further $500 million to the deficit for the month of May. This will then take our total deficit in this month to $4.42 billion for this month.”
However, she said Government will ‘find the money’ to firstly finance the deficit of $4.42B in May, drawing down on the remaining $2.7B available in the overdraft facility at the Central Bank.
The Prime Minister added that they also intend to refinance a minimum of 60% of treasury bills due in May, which will free up $647.7M to address part of the deficit.
“So it’s a combination of plans that we have to fill that deficit that we have inherited. We will also look at the HSF (Heritage and Stabilisation Fund), the available balance in the HSF to be drawn down for the rest of fiscal year 2025 of 1.76 billion. We will have to undertake additional borrowing of about $1 billion”
Mrs. Persad-Bissessar also sought to defend the move to repeal the Trinidad and Tobago Revenue Authority (TTRA) Act, noting that only 32% of public officers expressed interest to move to the TTRA.
“That abysmal failure in securing the majority of public officers’ interest in transferring to the TTRA signifies that the authority was unsuccessful in fulfilling its mandate and the authority was being thrusted upon the public officers.”
And based on the state of the economy, the Prime Minister heeded warnings that it could affect T&T’s relationship with credit rating agencies.
“That from October 2025 to March 2025, a total fiscal collections were $17.5 billion. That is revenue. The PS and the Minister of Finance has been asked to provide a revised projection of revenues in the short and medium term. Given the high levels of deficit and debt, this is likely to adversely affect ratings from credit rating agencies. So I’m warning you again.”
She said although Government is repealing the TTRA Act, it will seek to strengthen the Board of Inland Revenue, instead of spending to establish the TTRA.