An Independent Senator says while Finance Minister Davendranath Tancoo's maiden budget impressed with its delivery and people-centred focus, it falls short on credibility, key economic details, and transparency.
00:00Leading off the upper house debate for the independent bench, economist Dr. Marlene Atz described the UNC's administration's first budget as brilliant in delivery but deficient in depth.
00:12He delivered with energy, with political poise, and importantly, a people-centered focus, which I appreciated. I appreciated his tone of empathy that ran through his speech and the emphasis on restoring confidence in the economy by putting people first. I think that was absolutely important and brilliant.
00:38And there's a but.
00:39That people-centered approach is commendable. It is important. But a credible budget must go beyond good intentions. It must show how the government plans to confront our most pressing realities, including issues of crime, foreign exchange shortages, and rising debt.
01:05On these counts, Madam Vice President, I felt that Budget 2026 fell short.
01:12Dr. Atz questioned whether the government has been fully transparent and whether its promises are achievable.
01:18What is the target debt-to-GDP ratio that the government considers sustainable? That was not mentioned.
01:25What guardrails are there in place to protect investor confidence and to prevent future downgrades? Those were not mentioned.
01:35She raised concern that government's plan to borrow $18.96 billion was not explicitly stated during the presentation, instead found buried in the supporting documents.
01:47Even more worrying, she says, was the shift from local to foreign borrowing.
01:52So of the $18.965 billion, $8.1 billion comes from the domestic market, and $10.9 billion comes from the international market.
02:05The shift in the composition of borrowing will bring higher costs, greater exchange rate risk, and, of course, repayment obligations in foreign currency.
02:18Dr. Atz cautioned that such moves could deepen the foreign exchange strain and push the debt-to-GDP ratio even higher.
02:27The implication of this pivot to foreign borrowing is that the country must earn or save foreign dollars through exports, reserves, drawing down on reserves, or further borrowing.
02:42If these inflows of foreign exchange do not materialize, current and future generations will shoulder the burden through a devaluation process, most likely, or higher taxation.
02:57Dr. Atz also asked, where were the tangible incentives for farmers, the crime reduction strategies, or the plans to financially integrate migrants into the economy?
03:08She also raised concerns about fairness to CPAP workers.
03:12Accountability concerns are valid.
03:16No argument from me.
03:18But fairness, as is the theme in the budget, demands that we consider the human impact of the closure of those programs.
03:27Have we asked ourselves, in closing down these programs, what has been the multiply effect of removing income from thousands of households for more than 100 days?
03:41Has the abrupt loss of income among these affected workers disrupted the schooling of their children?
03:49Have their children been going to school since June?
03:52Can these families afford food, rent, or necessities?
04:00Has this income shock, the sudden loss of their income, pushed single-parent households deeper into poverty?
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