Tewarie: Budget allocations not just about spending money

FORMER planning minister Dr Bhoendradatt Tewarie said allocations in the budget should not be about spending money, but about the meaningful outcomes that arise from them.

He said this during a virtual post-budget forum hosted by the Port of Spain West Rotary Club on Wednesday.

In presenting the $52.4 billion 2021-2022 budget in the House of Representatives on Monday, Finance Minister Colm Imbert announced allocations of $6.886, $6.395, $3.577, $1.656, $1.249 and $0.610 billion to the Education, Health, National Security, Works and Transport, Public Utilities, Rural Development and Local Government, Agriculture and Housing Ministries respectively.

In his examination of those figures and the medium-term framework which Imbert outlined in the budget, Tewarie said he had no problem with education, health and national security once again receiving the largest budget allocations. But, he added, “It is not just the money."

Citing education as an example, Tewarie said, "The key question is will it prepare us for the fourth industrial revolution?"

He added that revolution will be characterised by things such as automation, robotics and artificial intelligence.

On health, Tewarie said, "The key question would be what have we learnt from the (covid19) pandemic to make a better health system?" While initiatives like building a new central block at the Port of Spain General Hospital are important, Tewarie said, "I think the key question is the quality of health, given our learnings from the pandemic and how we could make service to the citizens better."

While money for national security is good, Tewarie said, "We have a raging crisis in the PSC (Police Service Commission) and the immobilisation of the recruitment process for the commissioner of police."

Turning to works and transport, Tewarie was unaware of Imbert mentioning flooding during his presentation.

Tewarie said Imbert did not mention infrastructure either.

"Although there is a lot of priority for agriculture. He did not mention irrigation for agriculture."

While Imbert spoke about removing taxes on importation of electric cars not more than two years old, Tewarie said Imbert did not mention smart transportation hubs in TT.

Tewarie said during a television interview earlier in the day, Public Utilities Minister Marvin Gonzales said he could not justify increasing water rates now if people are not getting water in their homes. "I agree with him."

On electricity rates, Tewarie said, "The question is value for money."

The other question with water and electricity, he continued, is the question of competitiveness of business.

Tewarie, who hosts a morning programme on MCTV, said he recently interviewed InvestTT chairman Franka Costelloe. He said Costelloe identified low electricity rates as one of the things being used to encourage investment in TT.

"What I am saying is there are contradictory policy issues in each one of these items. The question is not just money and spending the allocation."

On the proposed introduction of cards to help the most vulnerable in society access water, electricity and fuel subsidies, Tewarie said this was not a bad idea. But he added, "I really think we have to move away from the transfers and subsidies as far as we can.

"We’ve got to move from supporting people with cash and other resources and create the conditions for employment and productive energy in the country."

He estimated that at this time, 46 per cent of people in the labour market, who are available to work, are either not working or looking for work.

Tewarie agreed with Imbert that no government could control food prices. But he said there were ways to make food more accessible and boost local production.

Tewarie recalled such an initiative happening in 2014 when he was planning minister.

He also believed Imbert missed a golden opportunity in the budget to do any kind of structural change in the economy "that will lead to income and foreign exchange earnings outside of the energy sector."

While offering incentives to the private sector, Tewarie said Imbert maintained a fallback position which was the "old strategy of depending on energy revenues."