$54 billion deficit budget

Port-of-Spain: Finance Minister Winston Dookeran today read a deficit $54 billion dollar budget for the next fiscal year, with revenue expected to be around $47 billion.

Among the highlights, is that $1000 allowances that were given to the police last years will now be extended to other protective services.

Mortgage interest rates at Trinidad and Tobago Mortgage Finance Limited will go from between 6%-8% to 5% to encourage home ownership.

The minister says reserves are currently at US$9.7 billion and savings in the Heritage and Stabalisation Fund are at US$4.1 billion.

He has promised free transport for all the disabled and food grants for families with disabled children.

The government will give subsidies for home improvements, of up to $50,000 for homes costing $200,000 in Trinidad and $250,000 in Tobobago.

The island of Tobago is being given $2.199 billion which includes $1.861 billion in Recurrent Expenditure and $390 million in Capital Expenditure.

The government is to begin work on a Solar Development Plant and is seeking joint-ventures in Ship Building and Repair Industry.

Seven new sites have been identified for conversion to Compressed Natural Gas for vehicles and the state will consider using CNG for water taxis. There will be a reduction in import duties for vehicles made to use natural gas.

More capital of state enterprises, including Plipdeco, TTMF, First Citizens are to be offered on the Stock Exchange.

The minimum monthly pension under the National Insurance System goes up from $2000 to $3000.

The government is waiving penalties for outstanding National Insurance contributions, up to June 30th, 2012 and there will be a waiver of penalties to companies who failed to file returns in employees also until June 30th, 2012.

The government will increased license fees energy sector and increased penalties for selling fuel illegally, of up to $3 million.

There will be no change in the fuel subsidy.

Revenue expected is $47 billion and  Expenditure at $54.6 billion resulting in a Budget deficit of $7.6 billion.

The budget was based on an oil price of US$75 per barrel and gas price of US$2.75 per mmbtu.

GDP growth of 1.7% is forecast.

Education has been given $8.7 billion, Infrastructure $6.9 billion,  Health $4.7 billion, National Security $5.1 billion and Agriculture $1.9 billion.