[UPDATED] THA budget: Farley wants $4b for Tobago

Monday 24 June 2024

Chief Secretary Farley Augustine talks to the media outside the Assembly Legislature, Scarborough, after reading the THA budget on Monday. - Visual Styles

TOBAGO House of Assembly (THA) Chief Secretary Farley Augustine requested $3.956 billion from the Government, in presenting his THA budget for October 2024-September 2025 on June 24. He justified this request by saying it amounted to a deserved 5.8 per cent of the country's $65.8 billion national budget.

He said the 5.8 per cent was within the range of 4.03-6.9 per cent of the national budget that was due to Tobago under the Dispute Resolution Committee, and noted Tobago's share of the national population has grown from the figure of 4.03 per cent in 1962.

Augustine said this was his third budget presentation and was likely to be his last.

He said the $3.956 billion would consist of $2.819 billion in recurrent and $1.002 billion on development expenditure. Some $91 million would go for URP and $43 million for CEPEP.

When disaggregated by the type of spending, his $2.819 billion request for recurrent expenditure would consist of: personnel $829 million; goods and services $855 million; minor equipment $29 million; and current transfers and subsidies $1.1 billion.

Augustine said significant revenue streams were generated in Tobago but were collected in Trinidad yet not remitted to the THA.

Augustine said anything less than 5.8 per cent of TT's national budget being allocated to Tobago would continue an inequality exiting since 1962. "All we are asking is $5.80 of every $100. This is a fair and reasonable ask."

Augustine alleged a $100 million shortfall for Tobago in the recent Mid Year Review in the $50 million allocation towards the oil-spill clean-up, and accused the Government of a crime against Tobago.

Saying the Government had lost its way on the economy and crime, he alleged, "It is wantonly opposed to providing a reasonable, fair, and just share of the national resources to the THA."

He said Tobago should have got $94 million in the Mid Year Review, under the Dispute Resolution Committee mechanism but had only got $50 million. He said the THA had requested $300 million of the $2.3 billion supplementary allocation. He said the colonial legacy of the Constitution now saw the Government responsible for every social and economic aspect of Tobago. Despite this, he said his administration would still aim to make Tobago "the greatest little island on the planet."

Augustine said the national budget had been weaponised against Tobago.

"This behaviour can now be classified under a new criminal code as 'Budgetary Attrition 101.'”

He said, "Might I add that part of unlocking Tobago's development potential requires Tobagonians to kick the door down."

Augustine alleged "pure unadulterated fight down, bad mind and wickedness."

He said, "This is my solemn promise to Tobago: Tobago shall overcome."

Augustine said Tobago's GDP was $1.66 billion, unemployment was three per cent, and 60 per cent of workers were employed by the State and 40 per cent by the private sector (compared to 20 per cent and 76 per cent respectively in Trinidad.) Some 23 per cent of the population has a tertiary education, 60 per cent secondary and 17 per cent primary, as their highest level of education, he said.

He said so far $17 million was paid to contractors for the oil spill clean-up, with $51.5 million outstanding as of April 30, 2024. Some $16.5 million more was projected since that date. Augustine said that in addition, $60 million was needed to dispose of the retrieved oil, now stored in open tanks at Studley Park. Saying heavy rainfall could turn this into an ecological disaster, he said that sum was urgently required. The THA had requested $154 million for these costs in the Mid Year Review but had only been allocated $50 million, he lamented. Augustine said compensation to fisher folk had not even been factored in.

He used the occasion to question others' purported love for Tobago, including anyone who disagreed with his call for Tobago to be defined in the TT Constitution.

Augustine said he had found deficiencies in the TT Revenue Authority Act, alleging the act puts the THA at a disadvantage and saying he had sought to meet the Prime Minister on the matter.

He said his political intelligence told him the Government would not implement the property tax before the general election due next year and said the THA would set up a legal property tax to help Tobagonians administrate their properties. Augustine advocated deed ownership before property tax enactment.

"Imagine having to pay property tax on lands that your family for generations cannot remove the colonial masters’ name from the deeds!

"Imagine having to pay for property tax on lands you cannot collateralise or cannot mortgage against!"

Augustine's proposed recurrent allocations were:

THA Legislature $27 million

Chief Secretary's Office $193 million

Finance $199 million

Tourism $197 million

Education $556 million

Community Development $117 million

Infrastructure $389 million

Food Security $197 million

Health $879 million

Settlements $52 million.

He said some major proposed recipients were:

Tobago Regional Health Authority $613 million

Tobago Festivals Commission $50 million

Tobago Tourism Agency $50 million

School Feeding $42 million

Farmland Development $26 million

Loan Guarantee $25 million

Tobago Agri Business Development Company $11 million

Reforestation and Watershed Rehabilitation Programme $10 million

Tobago Performing Arts Company $8 million.

His also gave a breakdown for his proposed $1.0032 billion for development programme.

This proposal consisted of:

Pre-Investment $0.5 million

Productive Sectors $1.5 million

Economic Infrastructure $398 million

Social Infrastructure $424 million

Multi-sectoral and Other Services $177 million.

Augustine proposed how the development spending would be spent on several sectors: Business, Tourism, Education, Housing, and Roads.

For Tourism, he proposed:

Tobago Tourism Agency $23 million,

Store Bay Beach Facility $15 million,

Pigeon Point Infrastructure $8 million

Highlands Nature Trail Development $3 million.

His requested sum for Education included:

Primary Schools $15 million

Scarborough Secondary School $15 million

Secondary schools $15 million

ECCEs $8 million

Pan in the Classroom $3 million

School E-testing $2.5 million.

For Housing, Augustine's request included:

Shirvan Housing Development $20 million

Home Improvement Grant $15 million

Affordable Housing Project $14 million

Courland Estate Land Development $9 million

Adventure Housing Development Phase Two $7 million

THA/Habitat for Humanity Partnership for Home Improvement $3 million.

Under Roads, Augustine's request included:

Road Resurfacing Programme $40 million

Major Improvement Works on Secondary Roads $35 million

Store Bay Local Road Extension $35 million

Windward Road Special Development Programme $15 million

Bad Rock Roadway Re-alignment and Improvement $15 million

Claude Noel Highway Roundabout $7 million.

Considering the financing options for all this proposed spending,
Augustine said the total revenue likely to be collected in Tobago in fiscal 2025 was $215.9 million.

This comprised taxes which totalled $214.5 million:

Tax on Income and Profit $133.9 million

Tax on Property $3.9 million

Tax of Goods and Services $70 million

Tax on International Trade $2.6 million

Other Taxes $4.2 million.

Augustine listed other expected revenue:

Property Income Tax 0.03 million

Other Non Tax revenue $1.31 million.

This story has been adjusted to include additional details. See original post below.

TOBAGO House of Assembly (THA) Chief Secretary Farley Augustine requested $3.956 billion from the Government, in presenting his THA budget for October 2024-September 2025 on June 24.

He justified this request by saying it amounted to a deserved 5.8 per cent of the country's $65.8 billion national budget.

Augustine said anything less than 5.8 per cent would continue an inequality existing since 1962.

"All we are asking is $5.80 of every $100. This is a fair and reasonable ask."

Augustine said the $3.956 billion would consist of $2.819 billion in recurrent and $1.002 billion on development expenditure. Some $91 million would go for URP and $43 million for CEPEP.

Augustine's proposed recurrent allocations were: