Tobago House of Assembly (THA) Chief Secretary Farley Augustine has registered strong disagreement with the budgetary allocation granted to the island in the 2027 National Budget, saying he felt “gutted” by cuts to capital development and a reduction in Tobago’s overall percentage of the national purse.
Addressing members of the media at the Red House in Port-of-Spain shortly after Finance Minister Davendranath Tancoo presented the budget, Augustine revealed that the direct allocation to the THA had declined from TT$2.9 billion in the previous fiscal year to just over TT$2.7 billion for fiscal 2027.
Foremost among his objections was the steep decline in development funding, which he stressed is essential to transforming the island’s infrastructure and diversifying its economy.
The capital development allocation was cut from TT$201 million last year to approximately TT$150 million.
“I have consistently, over the years… spoken about the fact that I feel Tobago needs to be given more on the capital development side,” Augustine said.
“Certainly after the hopeful start of last year, it feels gutted to be reduced to what we are accustomed getting in previous years.”
Addressing the allocation in proportional terms, Augustine pointed out that Tobago received 4.35 per cent of the national budget for 2027, down from the 5.0 per cent allocated in the prior fiscal package.
He argued that with Tobago accounting for approximately 5.1 per cent of the national population, the island’s statutory allocation baseline should never dip below the 5 per cent threshold.
Using a domestic analogy to characterise his administration’s stance toward the Central Government, Augustine remarked that differences of opinion between leaders are natural.
“In a household, husband and wife do sometimes have disagreements… it doesn’t mean an automatic divorce,” Augustine stated.
While maintaining that the THA’s working relationship with the current administration remains far more respectful, productive, and progressive than under the previous four years, he insisted that THA representatives would not silently accept shortfalls.
He gave notice that Tobago’s Members of Parliament will vigorously lobby during the budget debate for improved fiscal treatment for the island.
Augustine underscored that long-term equity cannot depend on annual ministerial discretion, calling instead for entrenched constitutional autonomy. He noted that a true “fair share” arrangement requires constitutional reform that enshrines an objective mathematical formula – an “algorithm” – to determine Tobago’s share of national revenue. He announced that following internal stakeholder consultations, the THA will publicly roll out its autonomy initiative in late November, ahead of Tobago Day on December 4, seeking bipartisan consensus across the government, opposition, and independent benches.
In the same vein, Augustine highlighted the country’s energy prospects, noting that much of the future hydrocarbon drilling and expansion celebrated in the budget will take place within Tobago’s maritime waters. He insisted that Tobago must receive a commensurate and equitable return from the revenues generated in its maritime space.
Turning to economic restructuring, Augustine reiterated that Tobago’s overwhelming reliance on the THA and government spending – which represents the largest contributor to the island’s GDP – is unsustainable. To shift the economic engine toward private enterprise, he called for the immediate abolition of the island’s restrictive land licensing regime under the Foreign Investment Act, arguing that 1-to-2-year approval delays severely stifle foreign direct investment.
He maintained that development regulation should instead be governed strictly through the Environmental Management Authority (EMA) and local Town and Country Planning guidelines set by the THA.
To stimulate private investment, Augustine previewed several public-private partnerships (PPPs) rolling out in the current fiscal year:
A sod-turning ceremony alongside the Prime Minister for the new Marriott Hotel.
Expressions of Interest (EOI) for the construction of Tobago’s first marina, aimed at capturing mega-yacht and marine tourism outside the hurricane belt.
Comprehensive tenders for the Scarborough Redevelopment Program, incorporating a new Government Campus Plaza and a multi-storey car park.
Augustine also moved to quell speculation regarding CEPEP and URP workers, giving the assurance that tenure and employment will be protected. He explained that URP staff have been successfully absorbed into the Division of Infrastructure, while CEPEP workers are being transitioned into sustainable agriculture and food security initiatives.
While criticising the fiscal package, the Chief Secretary commended the national expansion of social safety net spending, specifically increased grant funding for the elderly and vulnerable.
He added that several major joint projects are underway, including the opening of the new East Terminal at the A.N.R. Robinson International Airport, the handover of three joint police-army posts to the Ministry of Homeland Security, the commissioning of a new fire tender at the Roxborough Fire Station, and the expansion of mining operations at Studley Park Enterprise Limited (SPEL) following cabinet export approvals.
The THA will convene internal administrative sessions in November to reprioritise its capital projects and recalibrate the island’s spending based on the actual allocations received.
