Kamla accuses Govt of taking T&T into ‘debt trap’ with budget‘The country is effectively broke’

Andrea Perez-Sobers

Senior Reporter

andrea.perez-sobers

@guardian.co.tt

A decade of destruction, banditry, broken promises and betrayal was how Opposition Leader Kamla Persad-Bissessar described Finance Minister Colm Imbert’s over-five-hour-long Budget presentation yesterday.

Speaking to the media after the 2025 Budget was read, Persad-Bissessar said it was clear the country was “broke.” She said the Budget was almost $60 billion, but the Prime Minister was quoted in the media over the weekend saying to “hold strain and ban our bellies for hard times until 2027.”

She said the irony was that this Budget’s almost 60 billion dollars was adding to the over 500 billion dollars that Government has “wasted” in the past nine years.

Persad-Bissessar said during Imbert’s presentation, he confirmed Government had no plan for increased revenue generation but was prepared to wait for increased gas supply until 2027.

She noted that Imbert spoke of minimal growth in the last three years, but did not mention that this minimal growth was driven by heavy borrowing and withdrawals from the country’s savings and not from sustainable activity.

The Opposition Leader claimed in nine years, Government increased debt by approximately $72 billion and claimed it withdrew ten times from the Heritage and Stabilisation Fund (HSF), totalling $17 billion.

“They accessed approximately 89 billion dollars in financing to prop up government spending because of their failed budgets plus $17B HSF. Presently, the Government borrows just to pay their salaries.

The country is effectively broke. I warn contractors and suppliers, you will not get paid by them for the work they are giving out,” Persad-Bissessar claimed.

She slammed Imbert for his projections, which she said have been historically wrong on revenue and expenditure, deficit and debt.

On the issue of five per cent being offered to public sector trade unions who accepted the previous four per cent offer in 2022, she described the offer as insulting.

“Undoubtedly, some PNM-aligned unions will praise this and readily accept. But the majority of workers know that the cost of living has increased tremendously. This additional one per cent is an insult,” she said.

Persad-Bissessar also scoffed at the two-dollar increase in the minimum wage for public sector employees.

She called it a pure election gimmick. She has proposed 25 dollars an hour as what she called a realistic starting point for minimum wage, considering the cost of living.

On the issue of crime, Persad-Bissessar was doubtful about the promise of 2,000 new vehicles for the police service, body cameras, increased staffing, and a series of new equipment for the Forensic Science Centre. Instead, she asked what happened to the $60.83 billion the National Security Ministry had received since 2015 when the PNM government took office.

“He also wants to buy four new patrol boats and eight high-speed interceptors. They have 30 boats parked up for repairs, what about repairing those? If this Government couldn’t make improvements regarding the crime situation with 60.83 billion, why would anyone believe that the $6.113 billion allocation will cause any improvement?” Persad-Bissessar asked.

Concerning public utilities, she said Imbert spoke of a total of 38 projects that were completed under the community water improvement programme, which provided support to 16,793 residents at a cost of $47.5 million.

However, she noted that in the Auditor General’s 2024 report, $25 million for these projects could not be accounted for with many citizens still without water.

“This Government has pushed our country into a debt trap. Instead of frontally admitting the truth and seeking help to fix the problems, the minister keeps spending money while generating none, putting generations of citizens in debt,” Persad-Bissessar stressed.

Regarding the Government moving to sell its 49 per cent shareholdings in Colonial Life Insurance Company, the Opposition Leader said she will speak on the matter during her Budget response on Friday.

Asked whether she would match the Finance Minister’s speaking time, Persad-Bissessar chuckled and said she would not make that decision at the time.

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