2025 budget boondoggle

THE EDITOR: Once again education and training have secured one of the largest allocations in the 2025 budget – approximately $7.5 billion, which is about five per cent of our GDP. This surpasses the world average of 3.7 per cent, according to the World Bank.

On the surface, this is commendable: investing in human capital leads to increased productivity, which in turn drives economic growth. It fosters innovation, further enhancing productivity and fuelling a cycle of continuous development.

However, while the data clearly show that the education sector is not lacking resources – which is surprising given the numerous articles about degrading school infrastructure – we must ask ourselves: Is TT truly benefiting from this substantial investment in human capital, or are we essentially feeding the goose that lays eggs elsewhere?

In his 2025 budget presentation, the Minister of Finance unveiled some impressive figures: 15,714 students benefiting from GATE, 525 loans disbursed under HELP, and 277 national bursaries awarded. This is indeed commendable – encouraging and facilitating access to tertiary education for thousands.

However, this leads us to a crucial question: How are we leveraging this educated population to become more productive members of society?

While the Government provides training through programmes like OJT (On-the-Job Training), many participants find themselves jobless or underemployed once their contracts expire, unable to contribute effectively to society. Faced with limited opportunities, these educated individuals often seek greener pastures abroad to utilise their training and education.

So, while we spend billions educating our citizens, it is other countries that reap the benefits. It’s like investing all your income to create a product to sell, only to give it away for free – you would eventually face bankruptcy.

According to the Central Statistical Office (CSO), youth unemployment is currently at 19.2 per cent, and that only accounts for those actively seeking work; the real number may be even higher. This is a frightening statistic.

While it is commendable that human capital receives substantial allocations in the budget, we must confront a critical question: How do we navigate away from the fiscal externality of migration among our educated population? If we continue on this path, we risk turning our nation into a training ground for the global workforce, subsidising other economies at our own expense.

To truly benefit from our investment in education, we need to create an environment where our graduates can find meaningful employment and contribute to the growth of TT. This means fostering industries that can absorb this talent and implementing policies that encourage innovation and entrepreneurship. Only then can we prevent our resources from enriching other nations and ensure that our investment feeds back into our own economy.

JOSHUA RAMNARINE

via e-mail