National Budget

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Areas of Interest

Inflation

• T&T’s food import bill is high, at 7.3 billion and 7.2 billion in 2022 and 2023, respectively
• Inflation is under control, as it fell to 0.3 percent in July, 2024

Property tax

• The deadline for property tax payments has been extended by two months, from September 30, 2024, to November 29, 2024. Also, Government expects to implement an online payment solution for property tax on or before October 31, 2024, allowing online bank transfers and card payments.

Deposit insurance

• Effective October 1, 2024, deposit insurance increases from $125,000 to $200,000.

Government’s special projects

• Divestment of Magdalena Hotel: The sale or lease of the Magdalena Hotel
• New International Hotel development: To send out a request for proposals to develop a new 5-star internationally branded resort hotel on the Government-owned Buccoo Estate in Tobago
• Tobago Marina: To send out a request for proposals to develop a yachting marina in Lowlands in Tobago
• Divestment of CLICO: The government plans to facilitate the sale of its 49 percent shareholding in CLICO
• The sale or lease of the Pointe-a-Pierre refinery: Three companies were shortlisted and a formal selective request for proposals process will be initiated to determine the winner

Tobago
The budgetary allocation to the Tobago House of Assembly is $ 2.599 billion

• $2.376 billion would be for recurrent expenditure
• $205 million for the THA Development Programme
• $18 million for the Unemployment Relief Programme (URP)
• $9.2 million for CEPEP

$678.5 million is allocated to be spent by various government Ministries and Statutory Authorities

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Fiscal Measures for 2025

Online Numeracy Programme for Adults

• Ministry of Education to facilitate an Online Numeracy Programme that will provide classes via the School Learning Management System to complement those with newly acquired literacy skills. Expected to cost $3.2 million.

National Digital Literacy Project

• Government will collaborate with a suitable NGO to provide essential digital skills and knowledge to vulnerable groups under a National Digital Literacy Programme. Expected to cost $5 million.

Digital Literacy Certification for Students

• The Ministry of Education to implement a comprehensive digital literacy certification programme for students at various levels of the education system. Expected to cost $2.9 million.

Solar Powered Sustainability Project in 26 secondary schools

• Geared toward 26 secondary schools, in the first instance. Students in the secondary schools to utilise technological solutions and environmental sustainability to the benefit of their communities. Expected to cost $2.6 million.

Agriculture Internship Programme

• Government will be establishing an Agriculture internship programme which would provide an opportunity for 30 Associate Degree graduates of Eastern Caribbean Institute of Agriculture and Forestry (ECIAF). This would allow for the exchange of new theoretical ideologies and provide practical real-word agricultural experiences. Expected to cost $2.2 million.

CSEC Remedial Mathematics Programme

• Programme to be implemented by the Ministry of education as an after-school CSEC Mathematics Tuition Project at 26 secondary schools of focus. The government will allocate $3.5 million towards this programme.

Increase in minimum wage for government workers

• The minimum wage earned by public sector workers to be increased from $20.50 an hour to $22.50 an hour, effective November 1, 2024. Expected to cost $75 million.

Back pay for Public Servants

• The 37,000 public servants that settled wage negotiations with the government, will receive their new salaries immediately and their backpay, which comes up to $1 billion, by Christmas 2023.

Public Sector Wage Negotiations

• Government has instructed the Chief Personnel Officer to commence negotiations with trade unions for the next triennium January 2020 to December 2022. It is estimated that Government’s proposed wage increase of 5 percent will cost an additional $475 million per year in recurrent expenditure, with backpay up to the end of 2024 estimated at over $1 billion.

School supplies and book grant extended

• The $1,000 book grant assistance initiative started last year, will continue over this school year. The estimated cost is $20 million.

Tax amnesty and NIS amnesty

• An amnesty on outstanding tax and NIS payments will run from October 1, 2024, to December 31, 2024.

Housing and Village Improvement Programme

• Government to increase the price it pays to contractors to build HVIP houses, from $150,000 to $200,000 for the basic unit built on flat land.

Sporting equipment

• To encourage healthy lifestyles, effective January 1, 2025, government will exempt all sporting equipment, except for clothing, from taxes and duty. This measure is estimated to cost $20 million.

Agriculture

• Government to review all items used in agriculture, in order to remove any and all ambiguities in the definitions and laws pertaining to tax concessions for Agriculture, so that those involved in the sector can benefit from its tax-free status. This measure to be implemented in the first quarter of 2025.

Electric Vehicle Charging Equipment

• Effective January 1, 2025, all electric vehicle charging units and related accessories to be exempted from duties and taxes.

VAT refunds

• In lieu of VAT refunds, by January 31, 2025, government to issue 3 billion in interest-bearing VAT bonds to large companies. Small and medium enterprises who are owed refunds will be paid in cash by December 31, 2024.

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Major Fiscal Allocations

Education and Training: $7.512 billion

Health: $7.571 billion

National Security: $6.113 billion

Works and Transport: $1.410 billion

Public Utilities: $3.221 billion

Infrastructure: $1.862 billion

Rural Development and Local Government: $1.771 billion

Agriculture: $1.184 billion

Housing: $0.750 billion