A bigger slice for Tobago

A parliamentary committee has recommended Tobago get 6.8 per cent of the national budget.

That’s an almost 70 per cent increase in the island’s current mandatory share of 4.03 per cent.

However, Tobagonians are not happy with the proposal and have called for a higher minimum allocation.

We think this issue should not be one settled by whim or fancy. Tobago’s share in the overall fiscal pie needs to reflect its revenue generation, its productivity and its special developmental needs – all weighed in accordance with a carefully devised economic stimulus plan.

According to committee member Nigel De Freitas, the 6.8 per cent figure was not simply pulled out of thin air. He said the committee considered the rationale of the 1996 Dispute Resolution Commission, which came up with an allocation range of between 4.03 and 6.9 per cent. Geography, population and size were taken into account, he said.

It is also envisioned that there will be a fiscal review commission which will include key officials and stakeholders and will meet regularly to monitor the situation. Should Tobago need more, that committee could make such a recommendation to Parliament.

However, Mr De Freitas did not say whether such a recommendation would be binding on lawmakers.

Additionally, he offered no insight as to why the commission’s modus operandi was still relevant more than two decades later, at a time when the country has seen enormous changes, even before the pandemic.

Tobago Youth Council president Janae Campbell has said the allocation is simply not enough.

“I think that is an insufficient amount to really transform the island,” she said.

PNM Tobago Council political leader Tracy Davidson-Celestine said Tobago had asked for eight per cent two decades ago.

She said the physical separation of Tobago, its apparent isolation from the growth centres and the absence of a multiplier effect of expenditure and investment in Trinidad meant Tobago is in a precarious position.

These are all strong arguments. But they assume government spending is not going to substantially contract nationally in coming years. It could.

It should not be for stakeholders to randomly guess what level will work. Budgetary policy with regard to Tobago should be tied to the island’s actual and projected revenue and its roadmap for the future.

It is not in Trinidad’s interest for Tobago’s economy to stagnate. A strong Tobago economy will act as a stimulus to overall economic growth.

The budgetary cap should take into account Tobago’s developmental needs. These go beyond special infrastructure projects such as revamping air and sea links. It should also focus on economic diversification, moving Tobago away from seasonal and volatile sources of income.

What about wind and solar energy? What about business and high-tech innovation?

It is also proposed that Tobago will be allowed to borrow. In the past, restrictions spawned myriad legal mechanisms in an attempt to evade limits. That should not be necessary.

If Tobago is viable enough to pay its own way and to finance its own affairs, it should be facilitated.