With the highly anticipated Finance Bill coming before the House of Representatives to give effect to the 2026 Budget measures, the Government was presented with the ideal platform to explain to the country how it intends to fund the long-promised payout to public servants.
At issue is $3.8 billion in retroactive payments—some of which is to be disbursed by December 23—along with an additional $420 million in annual recurrent expenditure once new salary scales take effect at the end of January 2026. Notably, neither the arrears nor the expanded wage bill was explicitly provided for in the national Budget.
Yet, by the end of the parliamentary sitting, the country was no clearer on where the money would come from, amid warnings from the Opposition that a return to heavy borrowing would further inflate the national debt.
The only definitive information provided by Finance Minister Davendranath Tancoo was that similar backpay demands from other trade unions would not be settled in time for Christmas.
When Prime Minister Kamla Persad-Bissessar later addressed the House, her statement focused less on funding and more on reminding the nation that the former administration had, in her view, failed over the past decade to meaningfully improve public sector wages.
She did clarify that the Minister of Finance was instructed to ensure that part of the payment would be made before Christmas and that discussions between the Public Service Association and the Chief Personnel Officer would continue to determine what legal mechanisms could be used to settle the outstanding balance.
However, her only contribution on the funding of both the arrears and the newly unbudgeted expenditure was that Minister Tancoo would provide details at a later date.
This was yet another missed opportunity for the Government to account to the people of Trinidad and Tobago in the most appropriate forum and at the most appropriate time.
The questions being asked cannot, and should not, be dismissed as a nuisance to the Government.
Long before the agreement on a 10 per cent wage settlement, concerns were already being raised about how the country intends to expand its revenue base after years of declining oil and gas production.
As it stands, the public remains largely in the dark about how development priorities will be financed, particularly following the failure to revive the Dragon gas initiative amid ongoing US-Venezuela tensions.
While new energy projects are expected to come on stream in 2026 and 2027, T&T has never been in a position to absorb such a substantial increase in recurrent expenditure so easily.
None of this amounts to a condemnation of public servants who, unquestionably, have seen their disposable income eroded over time by rising costs of living, a point the Prime Minister was right to note.
The fairness of improved wages is not the issue.
The central question is whether the country can afford a payout of this magnitude at this time.
The answer lies in the source of the funds and in the Government’s ability to ensure that the wider population is not adversely affected by the fiscal consequences of such a large commitment.
This is what many were hoping to hear yesterday.
There is no doubt that the administration has won the loyalty and confidence of thousands of public servants by delivering on a promise made during the election campaign.
However, the greater challenge now is maintaining the trust of the rest of the nation by clearly assuring citizens that, in this regard, Peter will not be asked to pay for Paul.
