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CCNTV6
  • 5 months ago
In the Senate on Friday it was revealed the World Bank expressed concern over Trinidad and Tobago's operation and the Monthly Overdraft is currently over eight billion dollars or just under 80 percent of the allotted threshold.
Transcript
00:00Planning, Economic Affairs and Development Minister Kennedy Swarad Singh told the Upper House today
00:06during his meeting with the World Bank one month ago, concern was expressed.
00:11The World Bank expressed concerns with the country's operations and sought clarification on procedures for state engagements.
00:20Swarad Singh visited Washington around May 15th, where he held meetings with both the IDB and the World Bank on behalf of the government.
00:29The visit was as a request of the Prime Minister, primarily to reset Trinidad and Tobago's development agenda
00:35and strengthening the relationship with the World Bank Group and the Inter-American Development Bank.
00:41The World Bank Group then came to TNT for a four-day visit.
00:45The purpose of the visit was to re-engage key multilateral development partners,
00:51the World Bank Group and the Inter-American Development Bank Group,
00:54with a view to advise them of the new strategy direction for economic transformation.
01:00The discussions were centered on presenting the government's economic reset agenda,
01:04which aims to reposition the government as an enabler and a regulator
01:09and crowding private sector investment for the development of non-energy revenue generation activities.
01:17He said both institutions responded positively and expressed strong interest in supporting this government's transformation.
01:25Our partners recognize the new trajectory and momentum to drive meaningful progress.
01:32It is particularly encouraging that this renewed engagement has occurred early in our term
01:36and in the term of this government, setting a promising tone for closer collaboration moving forward.
01:42While answering oral questions in the Senate, Minister Swarad Singh said aside from the TNT $2 billion bond
01:49on the domestic capital market for fiscal support for this year, issued in May,
01:56there have been no external borrowings by the government.
02:00When quizzed about the monthly overdraft, the minister explained.
02:03The maximum advances allowed shall not exceed 20% of the estimates of annual revenue
02:10as per the parliamentary approved budget.
02:14For example, the maximum advances for fiscal year 2024-2025 is $10,844,800,000.
02:23This represents 20% of the estimated annual revenue of $54 billion.
02:27He then proceeded to give a breakdown for 2025 thus far, which steadily increased from 40%
02:35of the maximum allowed amount in January to just shy of 80% in June.
02:41But the minister proposed what he said was a feasible reason.
02:45The former minister of finance had deliberately underfunded critical expenditure.
02:51Mr. President, the former government recognized that the revenue target
02:54was going to be substantially less than budgeted, so they simply stopped meeting the obligation.
03:00Mr. President, I once again emphasize on behalf of the Ministry of Finance
03:05that this was a deliberate action by the then minister of finance, a statistical conmanship.
03:13Swarad Singh says it gives a false narrative leaving the state in hundreds of millions of dollars
03:19in arrears which his government must now settle.
03:21The minister says the overdraft will be continually challenged
03:25and when the government assumed duties on May 5th this year,
03:30the net overdraft stood at $8,257,000 or 76% of maximum advances.
03:38Urvishit Wari, Rupanarayan, TV6 News.
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