Here are the key takeaways from Trinidad and Tobago's budget 2021

Finance Minister Colm Imbert delivered a three-hour-long presentation of Trinidad and Tobago's 2021 budget in Parliament on Monday.

The budget, delivered in light of depressed oil prices and in the context of a pandemic, placed priority on agriculture and increased use of local content, the digital transformation of the country for innovation, growth, and education, as well as construction.

Here are the key takeaways:

1. Government has approved a $500 million agriculture stimulus package in 2021, in addition to regular budgetary allocations. It has promised to increase the use of digital technology in agriculture and focus on food security in light of an intolerable food import bill.

The government will also look at developing downstream agriculture industries and creating a strong agri-business eco-system. Imbert said food security must be a major activity in the new economy.

He said the government will also guarantee state agricultural purchasing and distribution of local content for the school feeding programme, public hospitals and the protective services.

2. Over the next ten years the HDC will deliver over 25,000 homes on state land and will provide a mix of housing solutions for people of different levels of incomes and socio-economic standings. According to Imbert's breakdown, 10,000 starter homes at a cost of $250,000 will be offered for a monthly payment of $925 with no downpayment. An additional 5,000 affordable homes will be available at a cost of between $350,000 to $500,000, starting with a five per cent downpayment. Another 5,000 are expected to be built, valued between $650,000 and $900,000 for middle-income buyers. Young professionals will also have access to homes built by the HDC valued between $1 million and $1.5 million.

3. The government is freezing the filling of all vacancies in the public service for a year and considering extending the retirement age to 65.

4.  The Government will create an electronic funds transfer window to allow payments, such as taxes, to be completed electronically.

5. The liquid petroleum fuel market will be liberalised, in other words, the fuel subsidy will be removed as of January 2021. Prices will be based on the market and dealers will be able to set their own margins. Wholesale margins will remain fixed for the time being.

NP gas stations will be privatised/sold, with first preference to existing dealers.

6. Government will extend the salary relief grant to December 2020 for people who work in the creative and cultural industries. Imbert said the government would establish a local content guideline for local media houses and by 2022, provide incentives to increase the local music played on radio stations.

7.Anyone earning $7,000 per month or less will be exempt from income tax as the personal tax allowanced has ben raised from $72,000 to $84,000. It will take effect in January 2021.

8. Government has allocated  $50 million for the acquisition of computers for needy students. This will be done in a joint effort between the ministries of Education; Public Information and Digital Transformation; and Social Development and Family Services.

Government has also introduced a programme to deliver wireless hotspots for students without internet access. The devices will be provided for 45,000 students.

The government will also remove all taxes on mobile phones and software. Imbert also announced technology-based tax allowances for businesses.

9. Government will look at other options for the purchase of the Pointe-a-Pierre oil refinery if an agreement is not finalised with Patriotic Energies and Technologies by October 31.

10. The new fast ferry will arrive and go into service on the seabridge by the end of December . It will be able to carry more than 900 passengers, and 250 cars and will take less than three hours to get to Tobago.

11. The Ministry of Works has been advised to find a private-sector partner to run commercial operations at the Port of Port of Spain, with the inter-island ferry remaining under the Port Authority.

12. The Government will remove concessions on new cars, making it more expensive to import them, and will decrease the age of foreign-used cars that can be imported from five years  to three from January 2021.

13. Imbert announced mandatory valuations so that the property tax can be determined.

Check our website for full coverage of the 2021 budget.

Imbert said the projected revenue for the budget was $41.364 billion and projected expenditure was $49.573 billion. The deficit is expected to be $8.209 billion.

It is based on an oil price of US$45 and a gas price of $3 per MMBtu.

National security: $5.227 billion

Education: $7.973 billion

Health: $6.050 billion

Local Government:$1.642 billion

Works and Transport: $2.956 billion

Agriculture: $1.198 billion

Housing: $1 billion

Public Utilities:$2.091 billion