Ministry of Finance Media Conference - Wednesday February 10th 2021

Key Points from the Ministry of Finance Media Conference - Wednesday February 10th, 2021 Finance Minister Colm Imbert gave an update on T&T's financial situation in terms of the revenue for the first four months of the financial year (October 1st, 2020 - January 31st, 2021). The Finance Minister noted that the COVID-19 pandemic severely affected T&T’s fiscal situation last year and continues to do so in the four months of the fiscal year. He stated that the estimated revenue for the first four months of the fiscal year was $13.823 billion but the actual revenue collection was $12.02 billion. This shortfall in revenue occurred in a number of areas, including Taxes on Income and Profits. - Taxes from Oil Companies: down by $268 million (due to depressed prices for oil and gas and lower than expected production volumes) - Taxes from Other Companies: down by $133 million - Taxes from Individuals (P.A.Y.E): down by $27 million - Taxes from International Trade: down by $46 million - Stamp Duties: down by $25 million - Non Tax Revenue (including Royalties): down by $806 million (as a result of depressed oil and gas prices and lower than expected petroleum volumes) - Non Tax Revenue (Profits from State Enterprises): Expected to receive $145 million but only received $120 million. - Unemployment Levy: down by $52 million Minister Imbert said as a result of these figures, Government has resorted to loan financing and making further withdrawals from the Heritage and Stabilisation Fund. So far, $3 billion was borrowed for direct budgetary support and TT$2 billion was withdrawn from the Heritage and Stabilisation Fund to pay salaries and wages and pensions and to keep the health sector going. Minister Imbert stated that the HSF is not being replenished by deposits, but is growing on its own through its own assets (stocks and bonds). He confirmed that the Fund is earning between US$300 million and US$500 million a year on its own. The primary objective of Government at this time is to pay wages and salaries, and to continue its mandatory payments (pensions, social welfare, debt servicing, water and public transportation). Minister Imbert said at this time, any demand for backpay or wage increases will not be accommodated because of the tough financial situation T&T has found itself in. He reiterated that crucial payments like wages, salaries, pensions and social welfare are the priority. Minister Imbert said the non-oil sectors of the economy are doing quite well so it is too early to say we are in a recession. Development programmes such as housing, road construction will continue. These keep employment going and stimulate the economy. Agriculture programmes will continue. Government has received correspondence from Patriotic regarding the sale of the Refinery and it is currently reviewing this correspondence.