Trinidad and Tobago's economy is heavily dependent on the energy sector, leading to a deep structural dependency. The government has been reluctant to diversify the economy, resulting in a projected $9 billion deficit for the current fiscal year [987b8bf4]. To cover its revenue shortfall, the government has resorted to misleading practices, such as drawing down $1 billion from the Heritage and Stabilisation Fund and raising $750 million through a US bond issue. However, these measures do not address the underlying economic crisis that the government is failing to acknowledge [987b8bf4].
The Central Bank's manipulation of economic data and the recent downgrade of the country's credit rating further indicate the severity of the economic crisis. The government's approach to the economy through taxation is seen as inept, with a decade-long delay in acknowledging the inefficiencies of the tax system and attempting to solve it with more taxation. The government's inability to pay VAT refunds, amounting to $7 billion, demonstrates fiscal ineptitude and a lack of understanding of the private sector [987b8bf4].
The International Monetary Fund (IMF) has recommended several measures to address the economic challenges in Trinidad and Tobago. These include privatisation, subsidy removal, clearing VAT refunds, increasing the retirement age, and reforming the foreign exchange market. However, the government's lack of transparency and proper economic planning is causing a burden on the most vulnerable in society [987b8bf4].