National Budget

Key Macroeconomic indicators
  • Real GDP growth of 1.9 percent is estimated for the first quarter of 2019
  • Expenditure is based on an oil price of US$60.00 per barrel and a gas price of US$3.00 per MMBtu
  • Total Revenue for the fiscal year 2019 was $46.56 billion. Expenditure for 2019 is expected to measure $50.50 billion
  • A fiscal deficit of $3.94 billion (2.38 percent of GDP) is estimated for 2019
  • Total Revenue for the fiscal year 2020 is expected to be $47.749 billion. Expenditure for 2020 is expected to measure $53.036 billion
  • A fiscal deficit of $5.287 billion (3.1 percent of GDP) is projected for 2020
  • The intention is to finance the $5.287 billion deficit from the domestic capital market ($3.811 billion) and external sources ($1.476 billion).

Areas of interest


Reform of Petrotrin


Trinidad Petroleum Holdings Ltd., a holding company, is now responsible for:
3 Functional divisions
  • Heritage Petroleum Company Ltd - This exploration and production company has generated revenue of $3.287 billion and profit of $543.5 million in its first three quarters of operation.
  • Paria Fuel Trading Company Ltd – Imports finished fuel products to meet national and regional needs.
  • Guaracara Refining Company Ltd. – In the process of being sold to Patriotic Energies and Technologies Company Ltd (OWTU)
1 Legacy subsidiary
  • Petrotrin
Conservation
  • Energy audit of all government buildings.
  • Free replacement of incandescent bulbs with LED ones in all households beginning in 2020.
  • Energy usage being reduced at 800 schools.
Housing
  • Small and medium-sized contractors to be offered contracts to build batches of 5-10 houses at a fixed price of $500,000 per house (By the end of 2019).
  • Government to provide low-interest loans up to $300,000 to people seeking to build their own home.
Fiscal Measures

Pensioners

  • Government pensioners born in Trinidad & Tobago, who possess computergenerated birth certificates no longer need to present life certificates. This measure will eventually be extended to Senior Citizens pensioners. The other categories of pensioners are still required to present life certificates.

Immigration and customs forms

  • In 2020 arrival forms will be eliminated from T&T airports.

Light Bulbs tarrif structure

  • It is proposed that all taxes on light bulbs and accessories be removed.

Solar water-heating equipment

  • The tax credit on the purchase of solar water-heaters is to be increased from 25 percent to 100 percent of the cost of the heater effective January 1st, 2020.

Energy exploration and development

  • The capital allowance for companies involved in exploration and development is currently tiered at 50 percent for the first year, 30 percent for the second year and 20 percent for the third. From January 1st, 2020 the capital allowance will be calculated on a straight-line basis of 20 percent over five years.
  • From January 1st, 2020 the loss relief rate is to be reduced from 100 percent of taxable profit to 75 percent of taxable profit.
  • The investment tax credit for energy companies is to be increased from 20 percent to 25 percent from January 1st, 2020.

On-the-job Training (OJT)

  • From December 1st, 2019 the stipend received by members of the OJT programme is to be increased by 10 percent and the programme intake is to be raised to 8,000.

Minimum wage

  • From December 1st, 2019 the minimum wage is to be increased from $15.00 per hour to $17.50 per hour.

Personal allowance at airports

  • Effective January 1st, 2020 the value of goods that can be imported without incurring customs duties increases from $3,000 to $5,000.

Creative industries incentives

  • Effective January 1st, 2020 the tax allowance for the corporate sponsorship of creative, cultural and sporting activities, increases from $3 million to $6 million.

Cooperative societies

  • From January 1st, 2020 the current limit of $5,000 allowed on the transfer of shares or interest payable to a nominated beneficiary upon the death of a member, will be increased to $50,000.

CEPEP

  • From December 1st, 2019 the wages of CEPEP contractors and workers will be increased by 15 percent.

Unemployment Relief Programme

  • From December 1st, 2019 the wages of URP workers will be increased by 15 percent.

Daily paid public servants

  • Daily paid public servants who upon retirement currently receive a lump sum but no pension, will now be eligible for the minimum public service pension of $3,500 once they have the minimum length of service. This will come into effect in 2020.

Styrofoam

  • From January 1st, Styrofoam for use in the food service industry will be banned and manufacturers of food containers will be required to make them biodegradable.

VAT refunds

  • To partially treat with the $4.5 billion in VAT refunds owed to businesses, government plans to offer $3 billion in interest-bearing government bonds to all eligible VAT-registered businesses to meet VAT arrears.
Near Term Projects
Project Cost Completion
Roxborough Police Station End of 2019
150-bed Arima Hospital $1.6 B End of 2019
100-bed Point Fortin Hospital $1.2 B January 2020
Red House restoration $441 M January 2020
Curepe Interchange $221.6 M March 2020
Roxborough Fire Station June 2020
Mosquito Creek elevated roadway October 2020
Solomon Hochoy Highway to Point Fortin $7.4 B End of 2020
Major Allocations

Tobago: Total allocation - $2.283 billion

  • Recurrent expenditure - $2.033 billion
  • Capital expenditure - $0.232 billion
  • Unemployment Relief Programme (URP) - $0.018 billion
  • Ability to secure bond financing up to $300 million

Education and Training: Allocation - $7.548 billion

National Security: Allocation - $6.440 billion

Health: Allocation - $6.084 billion

Public Utilities: Allocation - $3.047 billion

Works and Transport: Allocation - $2.956 billion

Rural Development and Local Government: Allocation - $2.469 billion

Housing: Allocation - $1.007 billion

Agriculture: Allocation - $0.708 billion

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