As he announced a projected $6 billion revenue shortfall from the estimated $49 billion anticipated in its Budget presented two months ago, Prime Minister Patrick Manning last night admitted and warned that "challenging times" were ahead for the Government and the citizens of Trinidad and Tobago.
In a live address to the nation on the state of the economy in the light of the global economic downturn, the Prime Minister announced cutbacks in Government's development programme expenditure, in "discretionary" spending and in allocations to all Government ministries, departments and statutory authorities.
But, he stressed, that Government was determined to continue to fund and would "probably increase its spending" on its social sector programmes, saying: "If this is what is called for, this is what we will do."
"Discretionary spending" such as promotion, publicity and printing would be curtailed, he said. He added that some development projects would be delayed or adjusted "downward" according to the following criteria- (a) new projects, not of an "urgent or critical nature"; (b) projects for which there were no firm contractual obligations; (c) ongoing projects for which the pace of implementation could be reduced without legal penalties; (d) ongoing projects for which some components could be deferred.
He warned that the budgetary shortfall was based on the present rate of international commodity activity.
"In other words, things could get more challenging," he stated.
Manning said his "ministers have now been directed to review their budgets along these lines; and next week the Cabinet will decide on the actual adjustments to our (development) programme to ensure that expenditure is kept in line with revenue".
The Prime Minister's address was a turnaround from Government's initial position, enunciated by various ministers, that the country was insulated and was not going to be affected by the global financial crisis.
Last night Manning acknowledged that the fall in oil prices and petroleum and other energy commodities-ammonia, methanol, urea and steel-would adversely affect Government's revenue take. He said the global economic slump could be "deep and prolonged" and "some even talk of a depression".
"No country could escape the effects of a global recession," Manning said.
But he defended Government's original bullish projections, saying that the budget prices for oil and gas, at $70 per barrel and $4/mmbtu respectively, were based on the "best global advice from expert agencies, including the IMF".
"Things are turning out quite differently," he noted.
He emphasised nevertheless that: "In considering these budgetary adjustments, our top priority in these challenging times will continue to be the welfare of the people. Therefore whilst sacrifices must be made ... as we negotiate this economic downturn, we will take care of those who are least able to take care of themselves."
Manning, who was a member of the 1971-76 and the 1981-86 Cabinet, reminded the country that "we have passed this way before" since both administrations faced depressed oil prices at some stage.
Noting during the 1980s and 1990s, when the country suffered "a calamitous loss of revenue and years of negative growth", he said the citizens swallowed "bitter medicine" as structural adjustment programmes were implemented.
"We have therefore proven that we can fight a recession and I am sure that we will triumph over this slowdown and this time we are better prepared," he said.
This time around, most importantly, he pointed out, the country had an LNG industry which was "designed precisely to give us a buffer in the event of the kind of situation that has now arisen". Noting that it was the Government of 1992 (which he headed) which authorised the pursuit of the LNG industry, Manning asked: "Consider, ladies and gentlemen, where we would be today without LNG?"
Nevertheless, he called for restraint from the citizenry.
"This is a period when we must all tighten our belts," he said, adding that the dialogue between the Government, business and labour must begin "as we come together to confront the challenges that are before us". He said key to this country's economic survival and success in this situation was higher levels of productivity.
He prefaced his statements by offering condolences to the families of the two people who lost their lives as a result of this week's flooding disaster.
In a live address to the nation on the state of the economy in the light of the global economic downturn, the Prime Minister announced cutbacks in Government's development programme expenditure, in "discretionary" spending and in allocations to all Government ministries, departments and statutory authorities.
But, he stressed, that Government was determined to continue to fund and would "probably increase its spending" on its social sector programmes, saying: "If this is what is called for, this is what we will do."
"Discretionary spending" such as promotion, publicity and printing would be curtailed, he said. He added that some development projects would be delayed or adjusted "downward" according to the following criteria- (a) new projects, not of an "urgent or critical nature"; (b) projects for which there were no firm contractual obligations; (c) ongoing projects for which the pace of implementation could be reduced without legal penalties; (d) ongoing projects for which some components could be deferred.
He warned that the budgetary shortfall was based on the present rate of international commodity activity.
"In other words, things could get more challenging," he stated.
Manning said his "ministers have now been directed to review their budgets along these lines; and next week the Cabinet will decide on the actual adjustments to our (development) programme to ensure that expenditure is kept in line with revenue".
The Prime Minister's address was a turnaround from Government's initial position, enunciated by various ministers, that the country was insulated and was not going to be affected by the global financial crisis.
Last night Manning acknowledged that the fall in oil prices and petroleum and other energy commodities-ammonia, methanol, urea and steel-would adversely affect Government's revenue take. He said the global economic slump could be "deep and prolonged" and "some even talk of a depression".
"No country could escape the effects of a global recession," Manning said.
But he defended Government's original bullish projections, saying that the budget prices for oil and gas, at $70 per barrel and $4/mmbtu respectively, were based on the "best global advice from expert agencies, including the IMF".
"Things are turning out quite differently," he noted.
He emphasised nevertheless that: "In considering these budgetary adjustments, our top priority in these challenging times will continue to be the welfare of the people. Therefore whilst sacrifices must be made ... as we negotiate this economic downturn, we will take care of those who are least able to take care of themselves."
Manning, who was a member of the 1971-76 and the 1981-86 Cabinet, reminded the country that "we have passed this way before" since both administrations faced depressed oil prices at some stage.
Noting during the 1980s and 1990s, when the country suffered "a calamitous loss of revenue and years of negative growth", he said the citizens swallowed "bitter medicine" as structural adjustment programmes were implemented.
"We have therefore proven that we can fight a recession and I am sure that we will triumph over this slowdown and this time we are better prepared," he said.
This time around, most importantly, he pointed out, the country had an LNG industry which was "designed precisely to give us a buffer in the event of the kind of situation that has now arisen". Noting that it was the Government of 1992 (which he headed) which authorised the pursuit of the LNG industry, Manning asked: "Consider, ladies and gentlemen, where we would be today without LNG?"
Nevertheless, he called for restraint from the citizenry.
"This is a period when we must all tighten our belts," he said, adding that the dialogue between the Government, business and labour must begin "as we come together to confront the challenges that are before us". He said key to this country's economic survival and success in this situation was higher levels of productivity.
He prefaced his statements by offering condolences to the families of the two people who lost their lives as a result of this week's flooding disaster.
Alyuh read this crap?
Not too long ago a mis-informed minister said openly that T&T will not be affected by the global financial crisis. Now our beloved Prime Minister has no choice but to admit that they were wrong and that T&T is in fact, affected by the crisis. His initial estimate of 6 billion is only the smoke, wait for the next declaration. The Prime Minister and his colleagues have been spending money as though it was going out of style, now everyone has to pay. The only problem is that they have inflated their salaries so much that their standard of living will not be affected; only the poor working class. A few short months ago money was no problem; but now the tune is changing. The Prime Minister is asking everyone to tighten their belts; I wonder if he wears one? The only good thing is that at the moment, there is plenty of water, I wonder what will happen in three months time?
They only want to build mansions, but luxury cars and spend money one useful things, I lost confidence in the government today. This is too sad
