The Trinidad and Tobago government Monday said it expects stabilisation and positive growth in 2026, as it rolls its development plans and initiate the rebuilding of the country.
‘Trinidad and Tobago’s economic prosperity, energy security and regional stability have also been given a significant boost with the recent United States support for the Dragon Gas proposal,’ Finance Minister Davendranath Tancoo, said as he delivered a TT$59.2 billion (One TT dollar=US$0.16 cents) budget to Parliament.
Tancoo told legislators that the government as part of its medium term economic outlook, will also be exploring all avenues to advance this project.
He said after years of underperformance, natural gas production is projected to recover from the current levels of approximately 2.6 billion cubic feet per day (bcf/d) to over 3.2 bcf/d by 2027.
‘As new fields come online, the development of the Manatee field alone, with estimated reserves of more than two trillion cubic feet of gas, will be groundbreaking for our economy.
‘On the other hand, oil production, which has averaged just 60,000 barrels per day in recent years, is alsoexpected to benefit from enhanced exploration and development initiatives.
Diversification remains at the heart of our strategy,’ Tancoo said.
He said that the coalition government is already focusing on agriculture, manufacturing, tourism and the service industry, amongst others.
‘Increasing investments and facilitating growth in agriculture and agro-processing will not only support the diversification thrust but also strengthen our agricultural base for food security and reduce our food import bill.
‘We will also focus on expanding manufacturing exports, boosting medical, sport, health, educational, and cultural tourism, and accelerating digital transformation, among other,’ he said, adding hat ‘these are expected to generate employment, increase foreign exchange currency inflows, and create opportunities for young people and small businesses’.
Tancoo said that the issue of foreign exchange shortages remains a challenge for businesses, limiting access to raw materials and production and that the ‘unfair practices at major commercial banks and the Exim Bank have exacerbated these shortages.
‘This administration will act decisively to stabilise the external position. By restoring energy production and creating an enabling environment for business and investment, we will increase foreign currency inflow,’ he said, promising ‘we will ensure that productive sectors have access to foreign exchange’.
Tancoo said that by accelerating energy production, broadening and deepening diversification, consolidating the fiscal accounts, and taking proactive steps to stabilize the external sector, the government will protect Trinidad and Tobago’s investment-grade standing and deliver sustainable growth.
‘Above all, our medium-term plan is about restoring confidence, protecting livelihoods, and creating diverse opportunities for every citizen,’ he said.
Meanwhile, Tancoo said that the government will implement new policies aimed at preventing the collapse of the National Insurance System (NIS) and in the process safeguard the dignity of retirees while providing income security for workers and their families.
He said currently the annual benefit expenditure is well over six billion TT dollars, an increase of more than 65 per cent over the last two decades, but that after a’ decade of neglect, this system is in crisis today.
‘To do nothing would be irresponsible. Since 2020, benefit pay-outs have consistently exceeded contributions, forcing the NIB to liquidate its assets to meet obligations. The 11th Actuarial Review projects that, if nothing is done, the Fund will be depleted by 2033 to 2034.
‘We will not allow the Fund to collapse, jeopardizing the very benefits that over 200,000 of our most vulnerable citizens depend on
He said additionally, beginning in January 2028, the age at which a person can receive a full NIS retirement pension will gradually increase over a 10-year period.
‘There will be no change for anyone who retires at age 60 before January 1, 2028. These retirees will continue to qualify for a full NIS pension (with a minimum of $3,000) at age 60.
Furthermore, existing pensioners will not be affected by this change.
‘Starting in January 2028, the age for a full NIS pension will increase by one year every two years until it reaches age 65 in 2036. This means that to access the full minimum pension of $3,000:’
Tancoo said that from January 1, 2028, to December 31, 2029, a retiree must be 61 years of age; from January 1, 2030, to December 31, 2031, a retiree must be 62 years of age; from January 1, 2032, to December 31, 2033, a retiree must be 63 years of age, from January 1, 2034, to December 31, 2035, a retiree must be 64 years of age; and from January 1, 2036 onward, a retiree must be 65 years of age.
He said for clarification, these adjustments mean that the retirement age for a full NIS pension will move from 60 to 65 over the next decade, but that persons who retire early will still receive a pension, but at a reduced rate.
‘These reforms are not easy, but they are now urgently required given the years of inaction that allowed these challenges to deepen under the last administration. These measures are projected to extend the life of the NIS Fund, securing pensions for today’s workers and tomorrow’s retirees.’