T&T DOWN THE IMF ROAD

THE Government has been implementing advice from the International Monetary Fund (IMF) despite a high-voltage denial from Prime Minister Dr. Keith Rowley.

The IMF recommendations have been made in its country reports on Trinidad and Tobago following consultations with Government officials.

The advice is not part of IMF conditions since T&T does not have any recent loan facility with the multilateral lending agency.

Instead, the suggestions are included in the IMF’s analysis with respect to the management of the economy.

As part of its proposals for economic management, the agency urged “gradually phasing out subsidies, streamlining transfers to state-owned enterprises.”

An increase in electricity rate has been announced, and a hike in water and sewerage charges is forthcoming.

The IMF also stated that increasing the retirement age to 65 “would help partially contain the deficits” of the National Insurance Scheme (NIS).

The NIS’ deficit is “expected to widen gradually, depleting its reserves by the mid-2030s.”

The Government is finalising plans to move the retirement age from 60.

Another proposal is “reforming the foreign exchange market,” which has been implemented by Finance Minister Colm Imbert.

“Implementing tax reform and strengthening the tax administration” is another recommendation, and ties in with the planned introduction of the Revenue Authority and the Property Tax.

The Government is also adopting the Fintech e-commerce system, a measure supported by the IMF.

But the administration is stalling on such IMF proposals as diversifying the economy, implementing the National Statistical Institute, and introducing renewable energy projects.

The IMF also said: “The authorities need to step up their efforts toward improving the business environment by delivering on their Vision 2030 agenda.”

The agency said the digitalisation agenda “to deliver more efficient public services, improve the business environment and enhance the social safety net is welcome.”

But critics have criticised the pace of digitalisation of the public service.

In his contribution to the Budget debate, Prime Minister Dr. Keith Rowley furiously denied implementing IMF proposals.

Opposition parliamentarian Rushton Paray said the Government has adopted prescriptions of the international agency, citing several measures, including the Property Tax, and the Gambling Bill.

“So, Dr. Rowley is telling the nation he is not listening to the IMF, but he is doing everything they say to do,” Paray stated.

The IMF Executive Board undertakes periodic consultations with member countries, with a staff team collecting economic and financial data and discussing policies and development programmes.

 The agency then issues respective country reports analysing the economic circumstances and making recommendations.