Given the current financial crisis over falling oil and natural gas prices, Government Ministries have reduced foreign travel expenses, slashed performance bonuses and reduced spending for social functions. So said Housing Minister Dr Roodal Moonilal as he responded to questions about cuts in expenditure mandated by Prime Minister Kamla Persad-Bissessar and Finance Minister Larry Howai.
He also said the cutback in expenditure could also affect major infrastructural projects, including the completion of the Brian Lara Stadium, Tarouba, one of the legacy projects of the People’s National Movement (PNM). Asked whether any other mega-projects will be put on hold, Moonilal said that would be decided after consultation with Howai and other members of Cabinet.
“The Minister of Finance is looking at the overall financial picture and expenditure policy but the various ministries will be cautious in expenditure, given the prices of global commodities,” Moonilal said. He noted, however, that projects being done by the Urban Development Corporation of T&T (Udecott), Estate Management Business Development Company (EMBD) and Housing Development Corporation (HDC), would go on.
“We don’t foresee any of the major projects in the health, education and housing sectors being stopped. There are some expenditure points we may have to look at in terms of getting external support but we will have to take a cautious approach in the coming months. We are now in the process of reviewing projects and the expenditure strategies at this time,” he added.
Pressed as to which projects might be affected, Moonilal said government could have to relook at its financing for repairs to the stadium. He noted that even though $1.2 billion had already been spent on the stadium, a further $200 million was still needed to complete repairs. “We did all technical work of assessment and it requires $189 million to complete that job so we have to source the funds.”
Planning Minister Dr Bhoe Tewarie also said government was reluctant to stop mega projects as that would have an impact on the economy. He added: “The one thing you don’t want to do is curb development programmes which will slow the economy. We don’t want to interfere with momentum of development because we had growth in the last two years and we anticipate growth this year.
“The balance has to be struck between keeping the development agenda going so that we can have the momentum of growth and continue investor confidence while at the same time cutting expenditure where you can.” He noted that discussions were ongoing with Ministry of Finance to decide which projects would continue.
Austerity measures
• Reduce foreign travel.
• Slash performance bonuses.
• Reduce expenses for social functions.