Finance Minister Davendranath Tancoo has presented a $63.368 billion national budget for fiscal year 2027 today, anchoring the package with across-the-board increases in social welfare grants, an allocation of nearly $2.5 billion for public sector wage arrears, and targeted tax measures aimed at remote digital services, corporate losses, and high-usage electricity consumers.
Delivering the United National Congress administration’s second budget under the theme “A People-Centered Approach: Investing in Communities, Transforming the Economy and Securing a Sustainable Future,” Minister Tancoo projected total revenue of $59.729 billion, leaving an estimated fiscal deficit of $3.639 billion, or 2.1 per cent of Gross Domestic Product.
The fiscal framework is pegged against an assumed crude oil price of US$77.00 per barrel and a natural gas netback price of US$5.00 per MMBtu, with energy receipts estimated at $14.355 billion and non-oil revenues projected at $45.062 billion.
Social grants increased by $250 monthly
Placing direct relief at the top of the Government’s agenda, Minister Tancoo announced an immediate $250 monthly increase to the Senior Citizens’ Grant, the Public Assistance Grant, and the Disability Assistance Grant, taking effect on January 1, 2027.
The grant adjustments will cost an estimated $555 million and provide financial relief to more than 165,000 vulnerable recipients. Additionally, retired public officers received a boost through an increase in the personal tax allowance for pensioners from $90,000 to $102,000 per annum.
The Minister also reaffirmed the State’s commitment to public servants, setting aside approximately $2.5 billion to honour outstanding wage agreements, including a 40 per cent cash payment on arrears for Public Services Association members and over $760 million in wage adjustments and backpay for the National Union of Government and Federated Workers.
Digital services and corporate tax measures
To balance these social commitments, the Ministry of Finance introduced several revenue-raising measures and tax-tightening provisions set to roll out in early 2027.
Beginning March 1, 2027, the State will standard-rate all supplies of digital and remote services, applying Value Added Tax to foreign non-resident streaming, software, and digital platform providers to generate an estimated $18 million.
Corporate tax arrangements will also see major adjustments: the utilisation of carried-forward business losses will be capped at 75 per cent of chargeable profits in any income year to yield $430 million, the Unemployment Levy on petroleum company profits will rise from 5 to 8 per cent to generate $155 million, and an electricity surcharge of 5 cents per kilowatt-hour will be applied to residential power consumption exceeding 3,000 kilowatt-hours per billing period to fund low-income utility relief.
At the same time, local beverage manufacturers were offered relief through a 25 per cent reduction in excise duties on alcohol, balanced by an ad valorem customs regime on foreign alcohol imports.
Refinery restart and new gas projects
Turning to the economic engine of the nation, Tancoo signalled a revival of the energy landscape, reporting that negotiations are actively advancing for a phased, commercially viable restart of the Guaracara Refinery at Pointe-a-Pierre with shortlisted investors.
He detailed a pipeline of new upstream natural gas projects slated for first delivery throughout 2027, including bpTT’s Ginger, Mahogany A Extended, Juniper Phase II, and Shell’s Manatee Plus, alongside a projected US$2.3 billion in upstream capital expenditure across the sector next year.
Health, education lead allocations
Sectoral allocations saw the Ministry of Health receive the largest allocation at $8.061 billion, closely followed by Education and Training at $8.033 billion, and National Security at $7.321 billion.
Tobago received a total budgetary allocation of $3.473 billion, or 5.48 per cent of the national envelope, comprising $2.756 billion directly allocated to the Tobago House of Assembly and $716.5 million in spending executed via central ministries.
New savings and investment programmes
In a further move to widen domestic savings and investment channels, the Finance Minister disclosed plans for a Retail Government Securities Programme and a Government Savings Bond Programme, offering electronic, tradeable securities in denominations as low as TT$1,000 and TT$5,000 in both local and US dollars.
Govt promises sustainable economic renewal
Closing his presentation to the House of Representatives, Minister Tancoo asserted that the administration had laid the groundwork to lift national confidence, stabilise debt, and diversify into manufacturing, agriculture, and tourism, maintaining that the 2027 fiscal package positions the country firmly on a path to sustainable economic renewal.
