Swaratsingh: Government can borrow $45b

PLANNING Minister Dr Kennedy Swaratsingh said the government will be allowed to borrow up to $45 billion under the Finance Bill 2025, which he piloted in the Senate on December 9.

The umbrella bill adjusts about 21 existing acts, largely in line with the Finance Minister's promises made in the recent budget, and was passed by the House of Representatives on December 5.

Swaratsingh said clause 14 amends the External Loans Act (chapter 71:05).

"This amendment addresses the fundamental ability of the government to finance our national development agenda.

"This amendment increases the existing statutory limit on external borrowing for general development purposes.

"Clause 14 increases the statutory ceiling to $45,000 million ($45 billion) from the existing $30.05 thousand million ($30.5 billion)."

However the text of the bill itself might have underestimated the pre-existing borrowing limit, at just $50 million.

The Finance Bill 2025, in clause 14, states, "The External Loans Act is amended in section 3(1), by deleting the words 'fifty million Trinidad and Tobago dollars' and substituting the words 'forty-five thousand million Trinidad and Tobago dollars'”.

A quick look at the External Loans Act (dated 1967 and updated to 2016) reiterated the existing borrowing limit of $50 million.

It said in section 3(1), "For the purpose of financing general development in TT or of repaying borrowings effected for the general development, the Minister on behalf of the government may borrow money externally in such sum or sums not exceeding in the aggregate fifty million Trinidad and Tobago dollars or the equivalent thereof in any foreign currency or currencies and thereafter he may borrow such further sum or sums as may from time to time be specified by resolution passed in the Senate and the House of Representatives."

Newsday asked Swaratsingh whether the pre-existing borrowing limit was $30.05 billion as he had just stated or whether it was $50 million as stated in clause 14 of the Finance Bill 2025 and indeed in the External Loans Act updated to 2016.

Swaratsingh told Newsday via WhatsApp text, "It was amended several times over the years.

"The last time it was raised to $30.5 billion."

In his speech, Swaratsingh also said the bill served to repeal the property tax, strengthen the accountability of the Board of Inland Revenue, give tax breaks to those funding animal shelters, and enact the landlord surcharge at 2.5-3.5 per cent plus a $2,500 registration fee.

He justified new measures under the Motor Vehicle and Road Tax Act in order to improve public safety, reduce violations and ensure penalties reflected socio-economic realities, including hefty penalties for drunk driving (namely a $24,000 fine and $45,000 fine for first and second convictions).

Swaratsingh was adamant that it was now long overdue to tackle illegal gambling, which he said the Finance Bill would help to do.

He said the bill's clause 3 would disrupt unlawful organised lottery activities which he said at present were punishable merely by low and outdated penalties which he said had "failed to reflect the scale of the problem." He vowed serious custodial sentences to send a clear and unmistakeable message that illegal activities would not be tolerated.

"On summary conviction, the penalty rises from $3,000 and 12 months imprisonment to $250,000 and three years imprisonment.

"On conviction on indictment, the penalty imposed is $3 million and seven years imprisonment."

He said the bill also increases the levy imposed by the Liquor Licences Act on gambling machines from $6,000 to $25,000 per machine.