Government Points To Reserves And Heritage Fund As Signs Of Economic Strength
Minister of Planning, Economic Affairs and Development Dr Kennedy Swaratsingh is defending the Government’s efforts to diversify the economy, outlining strategic measures spanning fiscal 2027 to 2031.
Speaking during debate on the Appropriation (Financial Year 2027) Bill, 2026, in the Senate on Monday, Dr Swaratsingh rejected claims that the country is in a recession, insisting that the economy remains on a path towards recovery.
« I want to state emphatically, Mr President, for the national community to know, unlike what others are saying, this country is not in a recession. »
Dr Swaratsingh outlined the National Development Plan for fiscal 2027 to 2031, which seeks to leverage the country’s energy, financial and industrial assets to drive sustainable economic growth.
« The economic plan has five reform pillars. One, fiscal stability, sustainability and public sector effectiveness; two, private investment and access to finance; three, economic diversification, export and foreign exchange; four, human capital productivity and innovation; and five, infrastructure, energy security and climate resilience. »
He said recent steps by the Government to secure the sale of Magdalena Grand Beach and Golf Resort, along with plans to divest National Quarries and LABIDCO, underscore the third pillar, which focuses on economic diversification and improving the performance of State-owned assets.
« Under the plan, the State Enterprises portfolio is managed on the basis of the first basis of the first enterprise by enterprise financial review of 43 State Enterprises. Each is placed in one of three groups. One to be protected and optimised, two to be reformed and strengthened, or three, or to face a time-bound decision of restructuring. Value-generating enterprises will operate under dividend and performance policies, and subvention will become agreements to deliver defined outcomes. »
Dr Swaratsingh also pointed to what he described as encouraging economic indicators, noting that headline inflation fell to 0.6% in July, food inflation declined from 4.7% to 1.7%, net reserves stood at US$5.4 billion with 6.2 months of import cover, and the Heritage and Stabilisation Fund reached US$6.58 billion.
Meanwhile, Government Senator Anil Roberts also dismissed Opposition claims that the country is in a recession, arguing that the economy is recovering from years of decline under the previous administration.
« The PNM had this country in a depression. The definition of a depression is an economic depression; it’s a prolonged period of severe economic decline. The country experiences major reduction in businesses, business activity over the last eight years of the PNM; over 6,243 SMEs shut down and closed down before COVID. »
He argued that Government policies are designed to ensure citizens benefit directly from the country’s resources as efforts continue to address what he described as years of economic decline.
« The Honourable Prime Minister with her heart where it is for the people of Trinidad and Tobago and the change in the policy where the resources of the country belong, in her opinion and the opinion of the Cabinet to the people. She is not going to wean the people off the resources and tell them, ‘Zero, zero, zero, nothing for you.’ Take away fuel subsidy and then Cabinet Ministers recuse themselves 720 times. That is not Kamla Persad says. So this policy shows that when we fix the damage done by you, the people of Trinidad and Tobago will benefit. »
Senator Roberts also pointed to the country’s foreign reserve position and the performance of the Heritage and Stabilisation Fund as evidence of economic strength, while dismissing criticism from the Opposition.
« The import cover dropped from 13.3 months down to under six months. So when they talk about the economy, the PNM should be the last people. You all should never come back anywhere near an economy. You all should not even rent cars from Econo Car Rentals. Anything with economy always should be left out. Trinidad and Tobago Heritage and Stabilisation Fund. And Senator Attzs, come on. You said 6.58 billion US. Say it with the meaning that it deserves. The highest level in the history of Trinidad and Tobago. Say it proudly; don’t be afraid. »
