Finance Minister Colm Imbert said yesterday further cuts to the 2016/2017 budget may result in adverse effects on the economy and therefore more cuts could not have been done.
Further cuts, he said, would have led to increased unemployment and cuts were easy to say but not easy to do. Speaking at the post-Budget forum hosted by T&T Chamber of Industry and Commerce at the Hyatt Regency, Port-of-Spain, Imbert responded to calls by commentators advocating cuts to the budget, by saying: “We are at a point where if we cut expenditure anymore, there could be a severe run on the economy... and a severe depression (in the economy).”
He said there was need for continued spending in the economy to generate jobs to continue to boost production. What was clear, he said, was that for the next three to four years the situation with the energy sector was going to be difficult. It means T&T need to find other means of attracting revenues, he said.
Although the audit into the debt owed to contractors was still ongoing, Imbert said Government had “quietly” settled $1 billion and was expected to settle another $1 billion, noting that only “legitimate” bills could be settled.
While not specifically referring to any collective agreement, he admitted that when collective agreements had to be settled they had the potential to do damage, as the sums were large and have to be paid all at once. He said that was the rationale for signalling in the budget statement that Government wanted to meet with Petrotrin’s union.
Asked what were the biggest challenges he faced for the future, Imbert said there was need for T&T to increase its sustainable revenue since a lot has been lost from energy revenues.
“We have lost $17 billion from the energy sector, so we have to generate income from other sources. That’s why we are pushing with the Sandals resort and why we have to push with services... agriculture, manufacturing and so on... that’s the challenge this country faces now. We need to get away from the idea that the energy sector will save us. It’s no longer the case.”
He said by 2018 there should be a gas flow between Venezuela and T&T.