The Finance Minister of Trinidad and Tobago, Colm Imbert, is facing controversy over the alleged missing billions in the country's national accounts for 2023. Auditor General Jaiwantie Ramdass has accused Imbert of attempting to bully and intimidate her to change her 2023 report and provide no documentation to support the increased revenue of $2.6 billion that he wants added to the audited national accounts. The inclusion of these missing billions would significantly reduce the 2023 fiscal deficit from $3.411 billion to $811 million, which could earn favorable assessments from lending and rating agencies such as the IMF and Moody's. The allegations against Imbert have sparked a showdown between the Finance Minister and the Auditor General, raising questions about the integrity of the country's financial management [cbcfb874].
The Finance Minister's proposal to raise the statutory limit of borrowings under the Developmental Loans Act from $65 billion to $75 billion takes on new significance in light of the controversy surrounding the missing billions. The government's borrowing capacity has come under scrutiny as concerns grow about the transparency and accountability of the country's finances. The proposal to increase the borrowing limit is not intended to add $10 billion to the current budget but to expand the government's borrowing capacity. Trinidad and Tobago's public sector debt-to-GDP ratio is lower than that of several other Caricom countries, but the recent revelations about the missing billions have raised concerns about the accuracy and reliability of the country's financial data. The government has been borrowing an average of approximately $3 billion annually since 2021 to support the economy, and the debt-to-GDP ratio was already at 70.8% as of December 31, 2023. The interest paid on the external debt for the fiscal year 2022/2023 amounted to $1.512 billion, accounting for three percent of the government's revenue. The controversy over the missing billions adds another layer of complexity to the country's debt management and highlights the need for greater transparency and accountability in financial reporting [b3c09c04] [cbcfb874].
The Trinidad and Tobago Chamber of Industry and Commerce (TT Chamber) has praised Minister of Finance Colm Imbert and the government for the economic initiatives outlined in the mid-year review of the 2023/2024 budget. The TT Chamber is optimistic that the initiatives outlined in the mid-year review have the potential to positively impact the business community and the overall economic landscape. The proposed budget increase, with significant allocations to critical sectors such as healthcare, education, infrastructure, and social services, represents a positive step towards fostering sustainable economic growth. The TT Chamber recognizes the government's efforts in addressing youth unemployment through new programs aimed at skills training and entrepreneurship support. The allocation of funds to support SMEs through the SME Development Fund and the focus on digital transformation and renewable energy projects are particularly welcomed by the business community. The ongoing foreign exchange shortage has created challenges for the business sector, and the TT Chamber advocates for measures to clear the backlog of VAT refunds owed to companies. The IMF's projection for economic growth after decades of deficit budgets is positive news that could inspire confidence in the Trinidad and Tobago economy and potentially lead to further investments [98b96eab].
In a new development, the Export-Import Bank of the United States (EXIM) has signed a Memorandum of Understanding (MOU) valued at US$500 million with the Republic of Trinidad and Tobago. The agreement focuses on strategic sectors such as maritime domain awareness, cybersecurity, renewable energy, and water sanitation. EXIM has also extended a $150 million Letter of Interest to Trinidad and Tobago's Ministry of Finance for the acquisition of maritime vessels and aircraft. The MOU facilitates access to US-manufactured goods and services, technical support, and collaboration in security, renewable energy, climate change mitigation, and small business support. EXIM representatives will engage with government officials and private sector leaders during an upcoming visit to Tobago to explore further opportunities for collaboration and investment [a73d7e55].