Senior economist Dr Roger Hosein says the reduction in the gas subsidy comes at a time when oil prices are low and may not be a significant saving measure for the State.
However, he said it needed to be done.
“Overall, this is a welcome change as it brings the Trinidad and Tobago economy closer to the type of changes necessary to realign its expenditures with its revenue intake”, the economist said.
Hosein’s main concern with the mid-term review presented by Finance Minister Colm Imbert on Friday was the statements about devaluation.
He said while Imbert could not announce that an outright devaluation of 20-30 per cent was needed, he had to be aware that a seven per cent devaluation overall from September may not be sufficient to change the external competitiveness of the manufacturing and non-energy sector to bring the desired amount of foreign exchange.
On the issue of the Government Assistance for Tuition Expenses Programme (Gate), which Imbert said would be reviewed and reported on in July, Hosein said it seemed to him that the Government was prepared to make some cutbacks.
“Nothing much was said except that a Standing Committee would provide a report by July. But it seems to be heading in the direction of a partial removal, especially for those who can afford to pay.”
Budget speech excerpts on pages A7, A14 & A16