IMPACT ON T & T

Budget: Manning’s fiscal package could be more than $38 billion

Budget 2008 is set to be the biggest in the nation’s history, even though the hunt is on for more oil and natural gas reserves to fuel the economy.

"It is more than $38 billion. It would probably be more than 38 billion," Prime Minister Patrick Manning said Tuesday in announcing that Budget Day is next Monday, August 20.

The Manning administration’s budget for the ongoing financial year, which ends on September 30, was set at a record-breaking $38 billion last October.

The Parliament, however, approved an additional $3.1 billion allocation in June, taking the total 2007 Budget cost to $41.1 billion.

Manning, the Minister of Finance, made the disclosure on the 2008 Budget price-tag after his surprise announcement at an energy conference at the Hilton Trinidad, St Ann’s, that he would be presenting the package on Monday.

Manning did so as he was responding to complaints from the chief executives of upstream energy companies-bpTT, BHP Billiton and Talisman-that the Government needs to improve the tax regime for exploration if it wants to increase oil and natural gas reserves.

Manning thanked the upstreamers for their confidence in the oil and gas sector before he said, "When next week Monday the Minister of Finance presents the annual budget to Parliament..."

The statement was immediately followed by a brief moment of silence and then laughter and applause as those present realized Manning had just announced the date of the Budget presentation without any warning.

A smiling Manning shrugged his shoulders in acknowledgement and continued with his remarks.

"That confidence that they have expressed will be appropriately reflected in the new policy prescriptions that we will outline," he said.

Manning later told reporters that the Budget presentation will begin at 1.30 p.m. on Monday, three days after the resumption of the sittings of both Houses of Parliament on Friday, as their joint recess ends tomorrow.

Manning said he had decided on that date "a couple of months ago".

He added that he has given the country one week’s notice and defined this as "normal".

The August 20 budget presentation comes amid the ongoing debate on an audit of the nation’s gas reserves which states that while there is only enough natural gas to last until 2019, an additional 37 trillion cubic feet (tcf) of gas has been identified for exploration.

Manning said the budget is still being drafted and will take into consideration the information gathered during the Government’s two-day consultation on food prices which begins today, as well as its energy sector conference that ended yesterday.

Manning, however, would not disclose any details as to what the nation could expect on Monday.

"I am sorry. I am not in a position to answer those questions now. We have had ongoing budget discussions and, at the appropriate time, we will tell you what we think we ought to say in advance of the budget," Manning said.

He did not hesitate to respond to any suggestions that the 2008 Budget will solely be designed to win votes in the upcoming general election, the date for which he is yet to announce.

"We just don’t go and do giveaways merely because an election is around the corner. We do things that we feel have to be done and if we feel there is no justification for doing it an election would not make us do what we don’t think is right," Manning said.

Last Wednesday, however, Manning had announced that Budget 2008 will contain measures regarding a salary increase for those employed in the Community Enhancement and Environmental Protection Pro-gram (CEPEP).

In addition, Housing Minister Dr Keith Rowley also announced last Wednesday that the Cabinet has decided to effect a no-downpayment policy for mortgages for State housing.

(Trinidad Express)