A
poor man's budget
By Juhel Browne
Trinidad Express
Port Spain
Petroleumworldtt.com
08 26 07
Budget 2007/2008, which will be a whopping $42.3
billion, is geared at putting the less fortunate
in a better financial position as the nation gears
up for the upcoming general election.
During yesterday's Budget presentation that lasted
just over three hours, Prime Minister and Finance
Minister Patrick Manning announced key measures
aimed at those in the low income bracket, chief
among them an increase in the minimum wage from
$9 to $10 an hour, as a start.
Manning said the minimum wage level has remained
unchanged despite increases in wages in most sectors
of the economy.
"We want to signal immediately that is our
intention to go beyond the $10," Manning said.
As
he denied the 2007/2008 fiscal package was an "election budget",
Manning also announced there will also be a 15
per cent wage increase
for those employed in two of his administration's
flagship social programmes-the Community Enhancement
and Environmental Protection Programme (CEPEP)
and the Unemployment Relief Programme (URP).
The wage hike for the 5,640 CEPEP contract workers,
however, will take effect from January 1, 2007
which means they will be receiving back pay.
The
average 17,000 people employed during a URP cycle
which lasts four to six weeks have, on the
other hand, received a "one time" 15
per cent wage hike.
Manning also announced a 15 per cent wage hike
for those employed in the Reforestation programme
effective January 1, 2007, which means these workers
will also be receiving backpay.
On more than one occasion, Manning said the 2008
Budget was merely a continuation of the Government's
fiscal policy over the past five years even as
he expressed his confidence his administration
will be in power for many years to come.
"It
is certainly not an election budget as some of
our critics anticipate.
No,
Mr. Speaker, the welfare of the citizens of Trinidad
and Tobago is too important to be left
to the vagaries of electoral politics," Manning
said.
In addition to low wage earners, pensioners in
particular have benefited significantly from Budget
2008 as the maximum Senior Citizens Grant has been
raised from $1,350 to $1,650 per month, as of October
1, 2007.
The
estimated additional cost is $215 million annually
and will benefit approximately 80,000
persons aged 65 and over," Manning said yesterday.
He said 26,742 retired public servants will receive
a lump sum National Insurance Scheme (NIS) payment
of $3,000 to compensate for October, November and
December of 2007 until the new $2,000 monthly NIS
pension takes effect from January 1, 2008.
The disabled, who Manning said numbered 17,000
people, will benefit from an increase in the Disability
Grant from $900 a month to $1100 a month.
There will also be an increase in Public Assistance
Grants that will benefit 21,000 of the nation's
most vulnerable at a cost to the State of $38 million.
Budget 2008 is being based on a natural gas price
of US$3.55 per million British thermal units (MMBTU)
which is just US 5 cents higher than the price
used for the original $36 billion 2007 Budget estimate.
However, Budget 2008 is being based on an average
oil price of US$50 per barrel of oil which is US$5
more than the price for the original estimated
for the 2007 Budget as international oil prices
have been trading at around US$70 a barrel.
Agriculture has received an allocation of $1.2
billion which is 50 per cent more than the allocation
for 2007 and double the average allocation for
2001-2007, as the Government seeks to bring down
rising food prices.
Manning announced several initiatives for food
production including the creation of 16 large scale
farms of a minimum of 100 acres each.
The debate for the 2008 Budget commences on Friday
with the response by Opposition Leader Kamla Persad-Bissessar.
- jbrowne@trinidadexpress.com
Trinidad
Express
Tuesday, August 21st 2007
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