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INDEPENDENT Senator and economist Dr Marlene Attzs says the 2025/2026 budget falls short on several important details which may cause it to fall short of its people-centred objectives. Attzs made the observation during her contribution to the budget debate in the Senate on October 27. The House of Representatives passed the budget on October 25. She described the budget's Trinidad and Tobago first approach as commendable. "It is a timely and moving aspiration." Attzs said fairness must be the common thread which must be used to critically determine whether policies and priorities outlined in the budget "truly deliver on that promise for all the people of TT." She added, "A credible budget must go beyond good intentions." A credible budget, Attzs continued, must show how the government plans to confront the country's most pressing realities such as crime, foreign exchange (forex) and rising debt. She said, "On these counts, I felt that budget 2026 fell short." Before the fairness of any fiscal package can be assessed, Attzs continued, the economic fundamentals upon which the budget stands must be examined. That includes assumptions about economic growth, debt and resilience. Attzs said, "All of these will determine whether the budget can actually keep the promises that were stated." She added economic confidence was underpinned by vision and credible data. Attzs said the budget did not have a target debt to GDP ratio in it. "What guard rails are there to protect investor confidence and to prevent future downgrades?" Attzs said that was not mentioned in the budget either. She added the Review of the Economy document, which accompanied the budget, showed economic stabilisation but no transformation. Attzs said, "Forex exchange shortages persist. Public debt continues to rise, we are at 80 (per cent) and rising and our reserves though stable, are being drawn down to plug short-term gaps." To achieve real economic fairness, she continued, there must be fiscal responsibility and sustainability. "This is all our business." She warned, "Borrowing to fund consumption or deferred obligations, simply shifts the burden to future generations." Attzs: Govt plans to borrow almost $19 billion Attzs was concerned Finance Minister Davendranath Tancoo did not mention government's intention to borrow $18.96 billion when he presented the budget in the House on October 13. While borrowing is not a problem in itself, she said, "What concerns me is a change in the consumption of the borrowing." Attzs recalled government's debut was previously domestically financed. But she said, "The 2026 estimates pivot towards foreign borrowing." Attzs indicated $10.9 billion of the $18.96 billion will come from borrowing on the international market. She said the shift would bring higher costs, greater exchange risk and repayment obligations in foreign currency. "Each dollar that we borrow in forex, must be repaid in forex." She asked, "How will these debts be serviced without worsening the forex strain or without driving the debt to GDP ratio higher?" Attzs said the implication to the planned borrowing was that the country would have to earn or save forex through exports, drawing down on reserves or further borrowing. "If these inflows of forex do not materialise, current and future generations will shoulder the burden through a devaluation process, most likely, or higher taxation." Senator: Cepep, URP had clear value Attzs repeated economic fairness demanded government keep its promise to pay all its debts. She questioned whether government exercised fairness when it decided to terminate Cepep and URP. Attzs said, "Cepep and URP were often derided as make-work programmes but their closure has made their value clear." She added uncollected garbage and overgrown public spaces which provided fertile grounds for public-health hazards were evidence of that. Between 2009 and 2023, Attzs said over $6.5 billion was allocated to Cepep. The PNM and UNC were in government at different times during his period. She lamented only $2.4 billion of the figure had been accounted for in 2024. Attzs accepted the need for financial accountability with Cepep. But she said, "Fairness, as was the theme in the budget, demands that we consider the human impact of the closure of those programmes." Attzs questioned whether the $475 million unemployment fund in the budget was a suitable replacement for Cepep and URP. She recalled the intention behind Cepep was environmental enhancement and providing short-term employment for certain people. These included single heads of households, women, semi-skilled people and people who did not finish their education. Attzs asked, "In closing down these programmes, what has been the multiplier effect of moving income from thousands of households for more than 100 days?" She asked,"Has the abrupt loss of income among these affected workers, disrupted the schooling of their children? Have their children been going to school since June? Can these families afford food, rent or necessities?" Attzs wondered if the sudden loss of the workers' income pushed single-parent households deeper into poverty. "What if any are the criteria and transitional arrangements to the new fund?" Attzs said, "Economic fairness cannot mean removing the lifeline before building the bridge." She added, "Ultimately, Cepep and URP must be seen within the national employment strategy." Attzs added former Cepep and URP workers must be part of that strategy.
