If a Government representative has been Minister of Finance for nine years and he is delivering what might probably be his last budget before the next general election, one would hope that as minister, he would have some kind of philosophical perspective from which to approach his budgetary presentation; because he might want citizens to contextually understand, for instance, why the reality of what they are living is what it is.
A minister in this situation might take the view that his government has done well and that the country is in a good place, and what the country needs is more of the same and that the government needs more time. All that is then left for such a minister to do is for him to indicate that the government would be carrying on with business as usual.
But Prime Minister Dr Keith Rowley had advised a few days before the Budget reading, that at least the next three years are going to be tough. This had also been clearly articulated by many commentators in the public space before, and anxiety was already evident in the consciousness, articulation and behaviour of the citizenry. So, the Prime Minister’s acknowledgement of a formidable challenge was important, even if late.
The minister himself, in the last budget, had also signalled the natural gas production drop to 2.5 million cubic feet per day, which consequently means a significant annual drop in revenue. So one might have thought that the minister would give some perspective on how, for the welfare of a country and people, the Government is going to steer us through these tougher times, when the immediate, stressful challenge is to maintain our standard of living and quality of life in the face of falling revenues, and to attract export focused investment, to generate jobs, decent worker incomes and foreign exchange. Property tax, Revenue Authority and tax amnesty may improve revenue, but not jobs, incomes or forex. Minister Colm Imbert did not shed any light beyond this.
And everyone knows we are living through some rough years now. Household incomes cannot keep up with basic expenditure on food, housing and utility costs. Official inflation numbers are undermined by the cashless trauma of day-to-day living by hundreds of thousands. So, the minister was hard-pressed to say that everything is fine and that we will press on with business as usual. But, by and large, that is what he did. “Steadfast and Resolute: Forging Pathways to Prosperity” was his budget theme. Basically, the minister’s thrust seems to be that the Government has done what it has done, is making no apologies, and is pressing on with what it sees as the business at hand. Two dollars more per hour for State workers, a maths intervention in 26 schools, digital literacy for students. Press on.
Heritage profits and taxes to Government do not change the price of fuel at the pump nor the inability of low wage earners, unemployed and taxi drivers to cope.
Nor do they provide forex to buy the feedstock.
The Minister of Finance could have also taken the view that, as a country, T&T has done all right but that we have some peculiar challenges, and to meet such challenges, we need to change course and head in a different direction or to treat particular things with a greater sense of urgency, and identify what those are and what the Government intends to do.
Crime, murders and guns for instance. By the minister’s own admission, a lot of money has been spent on the TTPS, $28 billion over ten years, and strong allocations are going to be made again this year. But clearly, allocations and spending are not what makes the difference to murders, gun and crime reduction. What is the policy shift and the operations strategy that would make the difference?
A minister in this situation would never take the view that as a government, they did not manage well; or that the government, has, in fact, failed on many counts. No minister would want to explain reasons for failure or lack of results. That would be like singing your swansong. So successes are all that you admit as you announce more initiatives.
From this perspective, the first five years of budgets were validated by the 2020 election. This second five will be validated or rejected in the 2025 election. Steadfast and resolute. That is just the way it is. In the democracy that we are struggling to create, nothing much matters in between.