The projected budget deficit of $3.639 billion raises a fundamental question: how will Trinidad and Tobago continue meeting its enormous monthly recurrent expenditure, particularly salaries, wages, allowances and pensions for public servants, teachers, healthcare workers and police officers?
If Government must find approximately 900 Million to one Billion dollars, monthly just to cover its recurrent public sector salary and wage obligations. Then the country must confront the reality of its financial position.
The decision to divest selected state assets is a start, but much more must be done. National Quarries, Hilton Trinidad, Magdalena Grand, LABIDCO and the former Pointe-à-Pierre refinery represent significant assets that Government is considering selling, restructuring or placing under private-sector management.
However, selling state assets must not become a substitute for sound economic management. These are national assets, and the public deserves to know their true value, the liabilities attached to them, who will acquire them and how the proceeds will be used.
Government must also explain how it intends to address the historical debt burden of state enterprises, improve accountability and stop taxpayers from continually carrying the cost of inefficient operations.
Equally important, profitable enterprises such as the National Gas Company must be managed prudently, given their contribution to Government revenue.
The critical question is this: will the proceeds from divestment be used to reduce debt, strengthen the economy and create sustainable income, or merely to finance recurrent expenditure until the money runs out?
Trinidad and Tobago cannot continue selling assets to pay bills without building new sources of revenue, encouraging investment, expanding local production and creating sustainable employment.
Selling the family silver may provide temporary relief, but it cannot be the country’s long-term economic strategy. Taxpayers deserve a clear plan showing how Government intends to balance its books, protect essential public services and restore the country’s financial stability.
The time has come for transparency, fiscal discipline and a national economic plan that looks beyond the next budget.
Gordon Laughlin,
Westmoorings
