Budget 2025–2026 Projects Growth Despite $3.865B Deficit
Themed ‘T&T First: Building Economic Fairness through Accountable Fiscal Policies,’ the 2025–2026 National Budget was presented with a fiscal deficit of $3.865 billion, alongside higher revenue compared with last year.
Stabilisation of the economy, prosperity, and prudent fiscal policies are the goals as envisioned by the Minister of Finance, Davendranath Tancoo, when he presented the 2025–2026 fiscal package.
« »As a result of these commodity price estimates, we expect total revenue $55.367 billion, total expenditure of $59.232 billion with a fiscal deficit $3.865 billion. Mr. Speaker, you should note that the fiscal deficit at $3.865 billion is 2.17% of GDP, again within the international benchmark of 3%. We have said it a long time ago, Mr. Speaker, performance beat old talk all the time. »
Minister Tancoo said that fiscal stability is the foundation of sustainable growth, as he announced 25 key fiscal measures geared towards economic revenue growth. Among the 25 are: a levy on the assets of commercial banks and insurance companies operating in Trinidad and Tobago, a landlord business surcharge, an electricity surcharge for commercial and industrial customers, the establishment of a Real Estate Investment Trust in Trinidad and Tobago, a new NIF Bond, a subsidy on Liquefied Petroleum Gas, and amendments to NIB rates.
Minister Tancoo revealed why the country was in such economic hardship.
« The economy shrank by 17%, with real GDP falling from $187 billion in 2014 to $154.9 billion in 2024. The country’s nominal GDP fell by 8.4% between 2014 and 2024, from $188.9 billion to $173.0 billion. »
Major fiscal allocations for 2026 include:
Education and Training – $8.766 billion
Health – $8.214 billion
National Security – $6.366 billion
Public Utilities – $3.395 billion
Infrastructure – $1.943 billion
Rural Development and Local Government – $1.807 billion
Transport – $1.840 billion
Agriculture – $1.13 billion
Housing – $662 million
