We are in an economic crisis

THE EDITOR: Some sobering facts as laid out in recent media stories include Opposition Senator and former finance minister Vishnu Dhanpaul predicting a $9 billion deficit in the next budget for 2025/26; and Central Bank Governor Larry Howai signalling an interest rate hike is likely in in TT's near future.

The current finance ninister forecasts an even higher $9.67 billion deficit for this year. For the average citizen, what do all these things mean? A fiscal deficit occurs when government spends more than it earns. To bridge the gap, it borrows.

Borrowing creates public debt and debt comes with interest payments. The more we owe – and the higher the interest rates – the less money is left for schools, hospitals, roads, security and other essential goods and services.

Finance Minister Tancoo faces two hard choices:

Raise taxes and cut spending – politically unpopular given his manifesto promises.

Grow the economy faster than TT's debt, which demands smart, foreign-exchange earning projects that are properly delivered.

Our problem is not ignorance but inertia. Too often, solutions are restricted to Port of Spain offices, political rallies or social media soundbites. No single party can fix this. The debt trap threatens every citizen and if left unchecked, it will strangle future generations.

This is not politics as usual. It is a full-blown national crisis. If we are serious about turning the tide, then all citizens must be part of the solution. The time for platitudes and rhetoric has passed. We must act together.

MOTILAL RAMSINGH

Port of Spain