By Leiselle Maraj Tuesday, September 1 2009

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Breaking news: Finance Minister Karen Nunez-Tesheira announces September 7 as the budget date yesterday. ...

Budget Day is September 7. Finance Minister Karen Nunez-Tesheira yesterday surprised reporters and news crews after the official start of the 47th Annual Independence Day parade at the Queen’s Park Savannah, Port-of-Spain with an impromptu media conference to make the announcement.

“I would like to take this opportunity to let you know that the national budget will be read Monday, September 7 in Parliament at 1.30 pm, at the beginning of Parliament,” she said.

Nunez-Tesheira sought to address a headline in one Sunday newspaper which stated Government will not spare any expense in the upcoming Budget. The minister insisted the Budget will not be a “no holds barred” presentation given the current turbulent situation faced by most of the economies across the world.

She repeated Government does not intend on reducing funding for programmes and major projects in core areas including security, health, education and social services.

In terms of infrastructure development, Nunez-Tesheira said Government will seek to prioritise projects to ensure the most important ones are given top priority.

In terms of growth, she said, Trinidad and Tobago, like most of the world with the exception of countries like India and China, will not experience any growth this year. She added Government is not deterred and will go forward with the necessary planning to strengthen the economy.

This budget, she said, will run at a deficit but because of prudent management of the economy and the country’s stable international ratings, Government was able to raise funds through the issue of bonds.

When asked what oil price estimate the Budget will be pegged to this year, Nunez-Tesheira said the public will have to wait and see and reminded that the economy is now more dependant on natural gas revenue than oil. She said however, “We always take a conservative position when we do our estimates, we did it last year and this year will be no different.”

When Nunez-Tesheira made the Budget presentation on September 22 last year, total revenue expected was $49.4 billion from an assumed oil price of US $70 per barrel and a gas price of US$4 per mmbtu. Expenditure was originally placed at $49.5 billion.

As a result of the global economic downturn, the Budget was reviewed twice, once at the end of November last year and again on January 15.

The assumed oil price was reduced to US$45 per barrel from US$55 which was the price after the first reduction. While the gas price remained at US$3.25 per mmbtu after the first reduction. Based on these new prices, revenues was expected to be US$42.2 billion, US$7.2 billion less than what was initially projected. Expenditure was also cut back, by a reduction in Government’s construction programme, to $43.9 billion which was $5.6 billion less than the first figure.