A $63.4 billion dollar deficit budget has been delivered by Finance Minister Dave Tancoo.
Among the key announcements is a $250 increase to Senior Citizens Pension, Public Assistance Grants and Disability Grants for Adults and Children.
These increases will take effect on January 1st 2027.
Also, despite previous fears of a hike in the cost of fuel, the Minister said there would be no such increase.
He said $290 million has been spent to absorb the rising cost of fuel, with Government to continue to keep prices constant despite rising global costs.
Another major announcement was an Electricity Surcharge of 5 cents per kilowatt hours on residential consumption above 3,000 kilowatt hours per billing period.
Minister Tancoo also announced:
• Champagne will cost more, due to a proposed increase in the duties for Luxury Alcoholic Beverages.
• Vaping in public spaces and sale of vaping products to persons under the age of 21 will be prohibited, while a 20% rate of customs duties will be applied to vaping devices and products.
• Commercial possession of 10,000 or more cigarettes will be classified as prima facie distribution, with licences required for imports of 800+ cigarettes.
• For travellers, the Forex declaration threshold will be increased from US$5,000 to US$10,000, from January 1st 2027.
• An increase in the maximum penalty for false Customs declarations, from $125,000 to $250,000
• $2 million will be allocated for the launch of the Real Experience and Development for Youth (READY) Programme – this will provide 1,300 secondary school students (16-years and older) with vacation internships carrying a $1,500 stipend.
• An increase from $4,000 to $8,000 as the penalty for employers who fail to pay the required National Insurance contributions.
• Steps will be taken to reclassify select goods from zero-rated to VAT-exempt status to broaden the tax net while maintaining a 0% VAT rate at the point of sale.
• The launch of a third National Investment Fund bond or NIF 3 in the coming months, which is expected to generate about $1 billon in revenue.
• Steps to implement a reformed and modernized VAT system, with recommendations made following a comprehensive review by an international partner.
• An expansion of the National Programme for the Upkeep of Public Spaces, which has so far created 2,900 real jobs.
• A $30 million allocation to the Flood Mitigation and Erosion Control Programme in fiscal 2027.
TOBAGO
With regard to Tobago, Government will allocate $2.756 billion to the THA for Fiscal 2027.
This represents 4.35% of the National Budget.
Mr Tancoo says a further $716.5 million will also be spent by various Ministries on services and projects, bringing the total allocation for fiscal 2027 to $3.473 billion.
Among other things, the THA is expected to prioritize the establishment oncology centre and the acquisition of an MRI machine and specialized diagnostic tools to reduce the need to travel to Trinidad for critical medical care.
BUDGET ALLOCATIONS
Overall, the Budget projects revenue of $59.729 billion and expenditure of $63.368 billion, resulting in a $3.639 billion deficit, or 2.1% of the GDP.
Oil revenue is estimated at $14.355 billion, while non-oil revenue was set at $45.062 billion.
The framework is set against an estimated crude oil price of US$77 per barrel and a natural gas price of $5.00 per MMBtu.
Overall, the largest allocation went to Education and Training which will receive $8.033 billion, while Health will receive $8.061 billion and National Security $7.321 billion.
