(Trinidad Guardian) Minister of Finance Colm Imbert announced yesterday that the country has, for the first time in 14 years, achieved a fiscal surplus, the first since 2007/2008.
In a release, Imbert said the total revenue in fiscal year 2022 was $54.21 billion, or $10.88 billion more than originally estimated. The total expenditure was $53.12 billion, or $690 million more than originally estimated.
He noted, though, that the Budget Division advised that there may be another $100 million in expenditure in 2022 that is still to be brought to account.
“Taking into account the additional $100 million in expenditure that may be brought to account in due course, the provisional out turn for fiscal 2022, instead of a deficit, is therefore a fiscal surplus [sic] of $1.08 billion, or +0.6 per cent of GDP,” the release stated.
The minister added that the additional money could now be used for flood relief.
“This improved out turn for fiscal 2022 has given the Government the additional fiscal space to implement the $150 million programme of disaster relief and infrastructure work announced by the Office of the Prime Minister yesterday (Thursday),” Imbert noted. In response to the announcement, former minister in the Ministry of Finance Mariano Browne said, “While I think we should be all glad that T&T achieved a fiscal surplus, this is an entirely fortuitous event due to the high energy prices and has absolutely nothing to do with any planning or management by the ministry.”
He said the surplus is due to higher prices, not higher output, since T&T has no control over market prices or how long the war in Ukraine will last.
“Absent both developments, the tax revenues would not have increased by such a large percentage. The surplus is good news but entirely fortuitous,” Browne added.
Opposition MP Davendranath Tancoo held a similar view, saying, “It’s possible. The energy boom prompted by high energy prices because of the Ukraine/Russia conflict have allowed higher revenue. However, having had more money, what have they done with it to improve the economic infrastructure of the country? How will the country grow?”
Speaking on the Government’s plans to use part of the surplus to fund flood relief, Tancoo said, “It is sad that having not spent hundreds of millions allocated for flood relief and infrastructure, that this Minister boasts now about surplus. The Government’s priorities continue to be out of alignment with the needs and aspirations of citizens.”
Economist Dr Marlene Attzs said although the announcement was good news, it was a little strange the country went suddenly from being in recovery mode from COVID-19 to a surplus.
“I think it would be important for the ministry to also release the expenditure lines from the various ministries so that we have a clear sense of where this surplus and this balanced budget is coming from,” Attzs said.
“Because clearly, the minister himself didn’t even have a line of sight of this when he presented the budget for 2023.”
The final accounts for fiscal 2022 must be reported to Parliament by the end of January 2023.
