Maroc - NEWSDAY.CO.TT - A la Une - 18/Jan 03:15

Finance secretary: Late release of funds affecting THA’s plans

SECRETARY of Finance, Trade and the Economy Petal-Ann Roberts has said the late release of funds from the central government is affecting THA’s plans to develop the island. In his presentation of the Tobago budget last June, Chief Secretary Farley Augustine requested 5.8 per cent of the government’s fiscal package for 2025. But the assembly, in the national budget in September, received an allocation of $2.599 billion to manage the island’s affairs, which represented 4.35 per cent of the national budget. Speaking on the Tobago Updates morning show on Friday, Roberts said the division received releases for January and February only last week. "But I can’t tell you when I will receive March. That is what is happening in the space," she said. Roberts, who assumed the position of finance secretary on June 28, said the THA Act states the assembly must receive money from the central government in a particular way. "That is for us to plan and to manage it effectively. We are supposed to receive our allocations quarterly or a block in advance. So it means that you must give it at the beginning of the quarter in whole, every quarter." She said as secretary of finance, "I cannot tell you when I am going to receive my next tranche of releases." The lateness in the disbursement of releases, she said, has prompted her to activate an overdraft policy, which is very costly. "It’s eight per cent with the bank and the overdraft interest is something that I don’t cater for in the draft because we can’t really tell how much it is and we can’t make a provision for it because we expect, according to the law, to receive allocations in a particular way." Roberts, a chartered certified accountant, added, "So when people are quarrelling and complaining about the lack of payments, it’s as a result of how we receive the allocations from Trinidad. So that’s a real pain for us." She said she has spoken to Finance Minister Colm Imbert about the situation. "We have overdraft interest right now, an accumulation of it about $50 million. I am not kidding you. I am not over-exaggerating. It is the reality because we do not receive our allocations in time." Roberts also said during her meeting with Imbert before the 2025 budget presentation, he indicated that the THA’s request for 5.8 per cent of the national pie "would be a lot. "He said it would also mean reducing the allocations for ministries in Trinidad. We found that to be a disadvantage to us because Tobago’s economy has been a particular way and that is because of lack of funding." Saying that money is a critical factor in the success of many things, Roberts said the THA may have difficulty carrying out some of its plans in 2025. "We got about $2.5 billion (in the budget) and URP and CEPEP remained the same despite the fact that they raised some aspects of the public service by $2 and we continue to get $18 million for URP and $9.2million for CEPEP. "So you could imagine the expectations of workers and our allocations remain the same. We just have to try to make it work in the interest of Tobagonians. But the expectations aren’t really in line with the realities that we face." Nevertheless, Roberts said several projects are in the pipeline to promote growth for entrepreneurs on the island. One such initiative, she said, is the establishment of a trade unit within the division. "We are looking at a trade unit to facilitate our entrepreneurs, SMEs and MSMEs to give them the opportunity to export and to get to export readiness, let them know what it requires in terms of regulations." She added the Tobago Development Bank, which started before she came into office, will also help "accelerate a lot of things for us in the economy." Roberts said the plans will take some time to materialise because the economy has been a bit slow. "Predominantly, in terms of the percentage, the THA does most of the employment. And then we pump a lot of resources into the SME sector." But she said the SMEs "may be the ones to spin the wheel in the economy. "They are the driving force but I know there is more work to do, more opportunities for growth for entrepreneurs, for the SME sector." Roberts said Tobago entrepreneurs must be risk-takers. "They have to be the ones to keep the business doors open. They have to be the ones to be committed and disciplined but we are not seeing that consistency in business. "From the time a day comes and you see no one, you close up shop and you become inconsistent, very predictable in the sector." The post Finance secretary: Late release of funds affecting THA’s plans appeared first on Trinidad and Tobago Newsday.