IMBERT’S BUDGET OF PIGTAIL, BUT NO DIVERSIFICATION

FINANCE Minister Colm Imbert clearly saw his 220-minute budget address as a reason to rejoice. 

But there were no glad tidings in Imbert’s 2021-2020 financial package for those who expected a reset of the national economy. 

For yet another year, the Finance Minister did not present proposals for weaning the economy away from the faltering oil and gas sector. 

Yet again, there were no specific measures at diversifying the one-pony economy. 

Imbert’s incentives to the manufacturing sector were couched as the government’s support of plans to double private sector exports by 2025.  

But he clearly did not factor in global, even regional, competitors who are ahead in the game. 

The ease up in Value Added Tax on food items is a reversal to the 2015 state of affairs and comes in the midst of galloping food prices and high unemployment. 

Imbert dipped heavily into his rehash notebook, repeating a slew of former promises. 

They include pledges to improve the national standing on the ease of doing business, setting up of the Statistical Institute, and proposals to boost food production. 

He also touted a shipbuilding industry, which was first promoted during the tenure of Patrick Manning. 

While he spoke of grandiose highway construction projects, he was silent on the most critical infrastructural issue – the tens of thousands of potholes that litter the country’s roads and are spurring higher taxi fares. 

He did not address the planned divestment of Petrotrin’s assets, which presumably means this is no longer a headline government measure. 

The mothballed Pointe-a-Pierre plant is now a wasting asset. 

While Imbert told of an assortment of stimulus programmes for the troubled Small and Medium-Sized Enterprise sub-sector, he did not rationalise why thousands of such establishments have been forced to close over the past few months. 

Similarly, in spite of advertised support from commercial banks, some mortgage holders have had to surrender their homes as a result of their inability to service their loans. 

He outlined measures for the tourism sector, but visitor arrivals are minimal even as other Caricom countries, such as Barbados and Jamaica, have introduced innovative travel packages. 

In the midst of the national crime epidemic, he said that Trinidad and Tobago was “secure.” 

The minister told a planned “non-strategic asset sale,” but did not indicate which State enterprise would be sold and whether there would be transparent procurement measures. 

He revealed that a Point Lisas asset would be divested to the Chinese authorities, a vital involvement by the Asian powerhouse in its bid for ascendancy against the Americans in this part of the world. 

Incredibly, Imbert did not detail any planned economic ties with Guyana, which is set to become, per capita, the world’s wealthiest energy-based country. 

A structured official programme for the export of energy goods and services would undoubtedly have benefited a large number of local entrepreneurs and workers. 

He harped on digitisation of the economy, as if this is a creative and progressive step, ignoring the fact that T&T is behind most countries in going digital. 

And while Imbert attempted to portray his budget as a package of positive measures, there is a sharp sting in the tail. 

The Property Tax, increases in water and electricity rates, and higher fuel costs are due during the forthcoming fiscal year. 

So, the reprieve on food prices would be offset by these incoming steeper rates. 

But for the minister, the removal of VAT on pigtail was worthy of many celebrations.