PNM hits 'unrealistic,' 'fake,' 'fraudulent' budget

The opposition PNM has described the 2025-2026 national budget as “fake and fraudulent.”

Chief among the opposition’s concerns is the oil price to which the budget was pegged. Finance Minister Davendranath Tancoo announced a $59 billion budget pegged against an oil price of US$73.25 per barrel and a gas price of US$4.35 per mmbtu.

“We expect total revenue of $55.367 billion and a total expenditure 59.232 billion with a fiscal Deficit of 3.865 billion,” said Tancoo.

However, oil prices are currently roughly US$60 a barrel for WTI crude and US$63.50 for Brent crude while natural gas prices are currently US$3.09 per mmbtu.

Former finance minister Colm Imbert described Tancoo's figures as “unrealistic,” and noted forecasts place the price nowhere near the government’s expected figure.

“The US Energy Information Administration forecast for 2026 is US$52. All of the other companies and entities that estimate oil prices are somewhere between US$50-$60. Our oil is priced at a lower price than some of these indicators…so we don't even get what you're seeing there,” Imbert said.

Imbert claimed the government was deliberately overestimating revenue so it could utilise a loophole to access funds from the Heritage and Stabilisation Fund (HSF).

“If your estimate is more than it should be and you get less than you expected, you can take out 60 per cent of the difference (from the HSF),” he said.

However, Prime Minister Kamla Persad-Bissessar, speaking with journalists at a post-budget media briefing, dismissed his comments.

She said her government does not intend to do what Imbert suggested, and accused the opposition of expecting the government to use the same “PNM tricks” of the past.

When Newsday highlighted the forecasted figures outlined by international experts, Tancoo said those were for WTI and Brent Crude oil, adding the government had used a basket price instead and was comfortable with the figures. Asked if the forecasted figures were optimistic given the global outlook, he replied, “No, they are realistic.”

BUDGET GIVES AND ALSO TAKES

Opposition Leader Pennelope Beckles said the budget “gave with one hand and took away from citizens with the other.”

Former prime minister Stuart Young echoed similar sentiments as he claimed the taxes in the budget negated the goodies offered by government.

“You are increasing electricity rates, but only for commercial and industrial. Those are immediately going to trickle down to our pockets.

“The same thing is going to happen with the rent and landlords. You think the landlord is going to absorb this new tax and keep our rent the same? It is all going to come down to our pockets. So don't be fooled,” Young warned.

He added there is nothing in the budget to stimulate the economy and claimed nothing the government offered was a new idea.

Beckles accused government of trying to "mamaguy" the public.

"They are taking all this credit for water projects in Siparia and Arima and a number of other places without saying to you that under the PNM, monies were approved through a loan for all those projects."

Young, who served as energy minister, also bashed government’s estimated revenue figures claiming “no expert in the world” would put the oil price at above $70 a barrel for 2026.

“Thank God that we renegotiated better prices for our gas and that is going to help with the gas price. But they have grossly overvalued the revenue.”

The opposition also accused government of going light on crime and education with Port of Spain East MP Keith Scotland saying some of government’s policies “defied logic.”

He pointed to the government’s plan to earn increased revenue through traffic fines as an example.

“A fine, and an increase in fines, is to act as a deterrent. What they have done is to say, ‘I will increase the fine so you will do more of that egregious act. And I will make $1.8 billion with that. That is why we say this government is very fake and fraudulent. United national con job,” he said.