T&T's Government Budget FY25/26

  • On October 13, 2025, Trinidad and Tobago’s (T&T’s) Minister of Finance Honourable Davendranath Tancoo made his first National Budget presentation since the reelection of the United National Congress (UNC) under the theme “Building Economic Fairness through Accountable Fiscal Policies”.
  • In the presentation, the government of Trinidad and Tobago (GoTT) has forecasted a FY2025/2026 deficit of TTD3.865Bn (2.17% of GDP). This outturn is based on an oil price assumption of US$73.25 per barrel, down from US$77.80 in the previous fiscal year, a natural gas price assumption of US$4.25 per MMBtu, up from US$3.59, and anticipated oil revenue of TTD55.367Bn.
  • The 2026 Budget focuses on diversification across agriculture, manufacturing, renewable energy, tourism and the creative industries, which opens new avenues for business and collaboration. Therefore, with projected revenue of TTD55Bn, including non-oil revenue of TTD43Bn (81%), the country continues to make progress in broadening its economic base beyond oil and gas.
  • Amongst the announcements were a 0.25% levy on the assets of Commercial Banks and Insurance Companies Operating in T&T; a landlord business surcharge of 2.5% for rental income equal to or less than TTD20,000,3.5% for rental income above TTD200,000; and an increase in Fees, Charges, and Excise Duties. All measures are set to take effect on January 1, 2026. These measures, while increasing revenue, also contribute to a more balanced financial framework for the national budget.
  • To support domestic financing, the Minister revealed plans for a new National Investment Fund (NIF) Bond backed by 21% of the Government’s shareholding in First Citizens Bank Holdings Limited. This is aimed at raising TT$1Bn, which is likely the first phase of a broader domestic financing strategy. Additionally, the GoTT announced the implementation of a 3% increase in the contribution rate of the NIF effective January 5, 2026, followed by another 3% increase from January 4, 2027, and the gradual adjustment to the retirement age for a full NIS pension to 65 from 60 over the next 10 years.
  • Equally significant is the renewed focus on youth development and education, with an allocation of TTD8.77Bn (14.8% of total expenditure) to build the future talent and skills base of the nation. Overall, the GoTT is set to prioritise investments in education, followed by investments in Health (TTD8.214Bn) and national security (TTD6.366Bn).
  • The Government’s strong emphasis on reform, disciplined financial management, and governance, if executed efficiently and in a timely manner could significantly improve the diversification prospects of the economy by reducing the dependence on energy, increasing labour productivity, and promoting a more business-friendly environment. That said, the deficit is expected to average 2.3% for fiscal years 2026-2028 and will likely be financed with domestic, external, and multilateral lending, as well as possible withdrawals from the sovereign wealth fund, the HSF.

(Sources: GoTT, Aegis Budget Newsletter, S&P Global Ratings)