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Presented by the Honourable Colm Imbert, Minister of Finance October 7 2019

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Presented by the Honourable Colm Imbert, Minister of Finance October 7 2019 Presented by The Honourable Colm Imbert, Minister of Finance October 7 2019 I 2020 BUDGET STATEMENT TABLE OF CONTENTS Introduction 1 Global Economy 2 Domestic Economy 3 Medium Term Outlook 5 Building Institutions 6 • The Trinidad and Tobago Revenue Authority Bill 2018 6 • Gambling (Gaming and Betting) 7 • The Property Tax 7 • Procurement 8 • National Investment Fund 8 • CL Financial/ CLICO 9 • Value Added Tax 9 Economic Resiliency 11 • San Fernando-Point Fortin Highway 11 • Valencia-Toco Roadway 11 • Churchill Roosevelt Highway Extension to Manzanilla 11 • Curepe Interchange 12 • Licensing Requirements 12 • Public Transportation 12 • San Fernando Waterfront 12 • Coastal Protection 13 • Flood Alleviation 13 • Police Stations 13 • Heritage Buildings 14 Economic Activity 15 • Energy Sector 15 - Petroleum Company of Trinidad and Tobago (Petrotrin) 15 - Natural Gas and Crude Oil 17 - Energy Conversion 19 Non-Energy Sector 20 • Manufacturing 20 • Special Economic Zones 20 • Phoenix Park Industrial Estate in Couva 20 • Small and Medium-sized Enterprises 21 • EXIMBANK Facility 21 • Business Development Fund 21 • Creative Industries Sector 21 • Industrial Estates 21 • Toco Port 22 • Agriculture 22 - Moruga Fishing Port 23 II STABILITY | STRENGTH | GROWTH • Tourism 23 - Magdalena Grand Beach & Golf Resort 23 - International Airport Tobago 24 - Air Bridge 24 - Sea Bridge 24 • Human Capital 25 - Education 25 - Housing 25 - Health and Healthcare 27 - Arima Hospital 28 - Point Fortin Hospital 28 - Sangre Grande Hospital 28 - Port of Spain General Hospital: Central Block 28 - Couva Medical and Multi-Training Facility 28 - The Roxborough Hospital 29 - St. James Medical Complex 29 - Diego Martin Health Centre 29 - Social Agenda 29 - Gender Issues 30 - Sports 30 - Review of Social Expenditure 31 - Water Production and Distribution 32 Safety and Security 33 Tobago Relations 36 Estimates of Revenue and Expenditure: 2019-2020 38 Fiscal and Other Measures 39 • Life Insurance Companies: Taxation Reform 39 • Life Certificates for Pensioners 39 • Immigration and Customs Forms 39 • Light bulbs: Tariffs structure 40 • Solar Water Heating Equipment 40 • Energy: Exploration and Development 40 • Energy: Loss Relief 40 • Energy: Investment Tax Credit 40 • On-the-Job Training 40 • Minimum Wage 40 • Personal Allowance at Airports 40 • Creative Industries: Incentives 40 • Public Service Pension 40 • Cooperative Societies 41 • CEPEP 41 • Unemployment Relief Programme 41 • Daily-paid Public Servants 41 • Styrofoam and Plastics Presented by the Honourable Colm Imbert,41 • CARICOM Market: Exporters Minister of Finance 41 • Agriculture: Incentive Structure October 7 2019 42 • Value Added Taxes: Refunds 42 Conclusion 43 III 2020 BUDGET STATEMENT INTRODUCTION Madam Speaker, four (4) years ago our Prime period 2010 to 2015, the effects of which are still Minister, Dr. the Honourable Keith Rowley, with us as we toil steadfastly to right the ship of afforded me the opportunity to present to this state. Honourable House the first Budget of this People’s National Movement Administration. Since then, I Madam Speaker, the assignment of the new have had the distinct privilege to present four (4) Government that assumed office in September Budget Statements which gave us the opportunity 2015 was and is clear. We were and are required to share with the citizens of Trinidad and Tobago to stabilize a dangerously slipping country and the manner in which the assets of the country are provide the country with an honest, clean and being managed. This 2020 Budget is the fifth transparent Administration; revitalize an economy Budget of this PNM Administration. after several years of economic stagnation; and repair the fiscal accounts, which were seriously Madam Speaker, for the past four (4) years this damaged by wasteful expenditure even as Administration has been leading a revenues deteriorated as a result of adverse transformational effort to rebuild our economy and commodity price shocks. We were also mandated to restore a system of good values and faith in our by the people of Trinidad and Tobago to public institutions. We recognize that while our re-establish confidence and trust in the current resources are inadequate to meet all of the management of the country’s business. urgent needs and demands of our citizens, we are confident that collectively and with appropriate Madam Speaker, the journey was as challenging sacrifice we are achieving the desired results and as it was rewarding. We have shown by our plans, are putting our country on a path of economic our deeds and action-oriented programmes that growth and human development. our mandate has been appropriately discharged. In fact, corruption is no longer a feature of public Madam Speaker, this country has demonstrated transactions as it was prior to September 2015. time and time again that when it is under pressure, it rallies and overcomes its problems, however Madam Speaker, the theme for the 2020 Budget is insurmountable they may appear. In this context, “Stability, Strength and Growth.” former British Prime Minister, Winston Churchill is credited for having said, “never let a good crisis go Madam Speaker, before I begin with the details of to waste”. Churchill was using the phrase in a the Budget, I wish to acknowledge the wartime context but what he meant was that a representations made to the Ministry of Finance by crisis can bring out the best in us. Our Government the major stakeholders in the society, including the can truly testify to this. business and labour organizations. As usual, I have found their recommendations to be We met a serious crisis when we took Office in particularly relevant to our circumstances and September 2015 – a crisis spawned by a many of them have assisted us in preparing our combination of external and domestic factors. The budget agenda. Once again, the public officials in sudden collapse of global oil and gas prices in the the Ministry of Finance and other ministries and period 2014-2015 was a major exogenous shock agencies, whose responsibility and deep sense of which triggered a sudden and drastic decline in public duty remain key attributes of our Government revenue. This could only have had a technocratic structure, have risen to the task of domino effect throughout the economy. The budget preparation. I take this opportunity to management of the economy also had to take into commend them. account the negative consequences of some irresponsible and reckless economic policies Madam Speaker, the combined efforts of my pursued by the previous administration over the colleagues and the public officials in the various 1 STABILITY | STRENGTH | GROWTH Ministries have once again produced iv. Undertaking constitutional and institutional technically-sound reviews and assessments of the reform; domestic economy as well as our upcoming plans v. Addressing the impact of shale gas on our and programmes. These are all incorporated in market and lower gas reserves and production; eleven (11) comprehensive documents which I vi. Discouraging the culture of irresponsibility and have today laid in Parliament. dampening unreasonable expectations; vii. Ensuring effective and efficient public service Members will find them extremely helpful in delivery and implementation of development informing their interventions in the parliamentary debate on this 2020 Budget. interventions and measurement of results; and viii. Protecting and sustainably using our Madam Speaker, our adherence to the National environmental resources. Development Strategy as outlined in our Vision 2030 document is driving the economy on its These are essential attributes of our development recovery path and we are making great strides. strategy and we are already witnessing some benefits from the sustained interactive process of The nine (9) areas of public economic policy development. On this foundation, the economy is require repetition: being rebalanced, with revenue and expenditure i. Expanding exports and increasing foreign levels significantly lower than they were in 2015; exchange earnings and employment; and strengthened with appropriate reforms and ii. Suppressing crime; policies. This has resulted in unemployment iii. Reversing non-progressive values, attitudes and behaviours such as low productivity and remaining at low levels, thus maintaining social poor work ethos; and economic stability and inclusiveness. GLOBAL ECONOMY Madam Speaker, as a small, open and developing This downward revision has continued in 2019 economy, Trinidad and Tobago cannot escape the with an estimate of 2.6 percent. In its January price changes and developments in the global 2019 publication, the World Bank had this to say: economy whether positive or negative. In 2017 “The outlook for the global economy has darkened. economic activity was accelerating in almost all Global financing conditions have tightened, regions of the world. However, by the second half industrial production has moderated, trade of 2018, this broad-based upswing in growth tensions remain elevated, and some large which had lasted nearly 2 years began to emerging market and developing economies have decelerate. A great deal has changed: US-China experienced significant financial market stress.” trade tensions are escalating; Brexit uncertainty is mystifyingly continuing and rising geopolitical tensions have been keeping energy prices in a The World Bank is estimating that global growth volatile state. will pick up slowly by 2021 to 2.8 percent. Credit conditions have
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