Reprinted from Caribbean Net News
caribbeannetnews.com

Trinidad budget gets widespread reaction

Saturday, October 7, 2006

by: Stephen Cummings
Caribbean Net News Trinidad Correspondent
Email: stephen@caribbeannetnews.com

PORT OF SPAIN, Trinidad: Trinidad and Tobago's national budget of TT$38 billion, which was presented on Wednesday by Prime Minister and Minister of Finance Patrick Manning, has begun to receive widespread reaction from the national community.

Leader of the Opposition UNC, Kamla Persad-Bissessar, described the Budget presentation as "a hopeless and heartless measure," which she says hurts the elderly, the poor as well as small farmers.

Speaking on the subject on food prices, the UNC leader observed that while these have increased by 25 percent every year since 2004, the TT$100 extra granted to pensioners by the Manning administration, amounted to an increase of less than ten percent of what they are now receiving.

Persad-Bissessar said food prices have doubled since the PNM came into office.

According to the Opposition leader, the 2006-2007 Budget failed to tackle inflation, which now stands at nine percent for the first time in 25 years.

And the newly-formed Congress of the People party led by former Trinidad and Tobago central bank governor, Winston Dookeran, believes that Prime Minister Patrick Manning has surrendered his responsibility to provide a safe country for the nation's citizens. He made the comment while being interviewed by the media following the Budget presentation.

Dookeran is quoted as saying, it is very clear that the PNM Government has placed the country in what he termed "a state of economic paralysis."

He says there is a sense of disconnection between the problems of the people and the proposals.

The Congress Party leader also described the Budget as empty, and as one full of promises which have been made in the past, with no clear results.

Dookeran also expressed the view that the government could not be serious, when the sum of TT$30 billion is allocated for the revival of the agricultural sector.

The Trinidad business sector has also reacted to the fiscal package. The Chamber of Industry and Commerce is of the view that the National Budget was a positive one and says it is pleased that many of its recommendations have been included.

Among these a reduction in inflation, the strong focus on the agricultural sector, the restructuring of water service, measures for SMEs, the increased level of public-private sector partnerships and the improvements in the senior citizens grant.

It adds that the announcement of Government's intention "to respond favourably" to concerns about foreign ownership of land in Tobago requires further clarification and study since it believes that this could negatively impact on tourism in Tobago.

The Chamber also sees the approach to management of the nation's Heritage Stabilisation Fund as sound, and encourages Government to put this in place quickly in order to ensure that maximum benefits are derived.

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