T&T budget expectations low; focus on economic growth

The Manning government is placing high priority in its 2009/2010 budget on creating jobs. In addition, Finance Minister Karen Nunez-Tesheira, who presents the fiscal measure in Parliament Monday, has said she will focus on economic growth and capital expenditure.

The minister told the Trinidad Express the government expects lower energy revenues, due to record low natural gas prices. She had earlier indicated that there will be a deficit, without giving details.

The Central Bank's Summary Economic Indicators Bulletin up to June showed that in the first quarter of this year, unemployment rose to five per cent from a record low of 3.9 per cent in the last quarter of 2008. The job losses have been blamed on the international financial crisis.

The government had to adjust its 2008/2009 budget twice from its original $50 billion projection during the fiscal year, with cabinet approving about $5 billion in cutbacks.

Nunez-Tesheira said the 2009/2010 Budget will be a continuation of Government's "prudent" management of the economy.

"What this budget will be doing will be consistent with what we have done," Nunez-Tesheira said. "It is not anything different from what we have indicated...At the end of the day, I expect when the Budget is read they (the opposition) will be in high praise."

The opposition has called on the government to cut back on capital expenditure on mega-projects and focus on spending on other areas such as health care, social services and fighting crime.