This mid-year review is a valiant attempt by the Government to ease the country into the frigid economic waters with which we are now faced. The elimination of the fuel subsidy is justified not just by the economic conditions but by the fact that oil and therefore fuel are now much cheaper.
The bitter pill of devaluation must be swallowed soon to give Trinbagonian exports the advantage. If these things cause inflation, and prices go up, it would not be the end of the world. Headline inflation is 3.4 per cent and if the sleeping giant that is the Central Bank picks up its greatest tool, monetary policy, not only would we be able to reduce inflation but get the economy moving again.
Lastly, if the Government sells off national assets, I agree that the windfall shouldn't be used to plug the hole in the budget but I think a much more coherent policy is needed. A Saudi Arabia-style Public Investment Fund ought to be created where all one-off revenue should be deposited to fund house-building, funding expansion in manufacturing, improving the healthcare service, transport, boosting agricultural output; tackling the things which really drain the average consumer.
The mid-year review, like the budget, is merely, to paraphrase Churchill, the beginning of the beginning but it is a promise. Maybe we turn a corner and ring in an era of fiscal responsibility. We can only hope.
Nathan Boynes
Via email