Highlights from Trinidad and Tobago's 2026 National Budget
- MASX
- 5 days ago
- 3 min read
On October 13, 2025, the Minister of Finance of the Republic of Trinidad and Tobago, Mr. Davendranath "Dave" Tancoo, addressed both the parliament and nation of Trinidad and Tobago for what has been titled annually as "budget day". Here is a clear, up-to-date summary of the 2026 National Budget for Trinidad & Tobago (as presented in October 2025):
🏛 Basic Figures & Fiscal Position
Metric | Estimate / Projection |
Total Revenue & Grants | TT$ 55,367.0 million |
Total Expenditure | TT$ 59,232.0 million |
Fiscal Deficit (Overall Budget Balance) | TT$ 3,865.0 million (≈ 2 % of GDP) |
Recurrent Expenditure | TT$ 57,810.4 million |
Capital Expenditure | TT$ 1,421.6 million |
Current Account Balance (Recurrent Revenue – Recurrent Expenditure) | TT$ –3,154.6 million |
Notes / Implications
The deficit is within the internationally acceptable range (around 2 % of GDP) — i.e. not exceeding the typical 3 % benchmark.
A large share of total spending still goes to recurrent items (salaries, goods & services, transfers) rather than capital investment.
Capital investment is relatively constrained, implying tight fiscal space for new infrastructure or expansionary projects.
🎯 Strategic Pillars & Priority Themes
The Government has anchored the 2026 Budget around “T&T First – Building Economic Fairness through Accountable Fiscal Policies” and organized it around five strategic pillars:
Restoring Confidence & Fiscal Stability
Unlocking Productive Investment & Jobs
Commercialising & Optimising Public Assets
Modernising Infrastructure, Transport & Digital Services
Protecting the People (Social Investment & Safety Nets)
These pillars reflect a mix of revenue stabilization, economic diversification, social support, and infrastructure/digital modernization.
🧭 Key Policy Measures & Highlights
Some of the more significant announcements and policy changes include:
Fuel & Cost-of-Living Reliefs
A reduction of TT$1 per litre in the pump price of Super Gasoline, effective immediately.
Removal of VAT from several basic food items starting 17 October 2025.
Tax exemption on private pensions starting 1 January 2026.
Wage & Public Service Measures
Public servants to receive a 10 % wage increase and retroactive back pay.
The government is repealing the Trinidad & Tobago Revenue Authority Act (which had created uncertainty for public officers).
Taxation & Revenue Measures (“Losers” / New Levies)
Increase in NIS (National Insurance) contribution: +3 % in 2026 and further +3 % in 2027.
Landlord business surcharge of 2.5–3.5 % on rental income, effective Jan 2026.
Electricity surcharge of TT$0.05 per kWh for commercial & industrial users.
Asset levy of 0.25 % on commercial banks and insurance companies (~TT$575 million in revenue).
Higher excise/duty on alcohol, beer, rum, and tobacco.
Elimination of CEPEP and URP programmes; instead an Employment Fund of TT$475 million to provide full-time jobs.
5 % tax on single-use plastics on importation.
Removal of duty-free concessions on vehicles for returning nationals.
Sectoral & Investment Focus
Education & Training: gets the largest allocation (TT$8.76 billion)
Health: TT$8.21 billion allocated
National Security: TT$6.36 billion
Public Utilities: TT$3.39 billion
Infrastructure / Development: TT$1.94 billion
Agriculture support: removal of VAT and customs duties on agricultural machinery, greenhouse / hydroponics equipment, and animal feed (starting Jan 2026)
Transfer Pricing legislation: multinationals will now face stricter rules to prevent profit shifting, as the government aims to reclaim lost revenue.
Improving financial integrity & FATF compliance: new laws, regulatory upgrades, institutional strengthening to combat money laundering and meet international standards.
Removing Trinidad & Tobago from the EU “non-cooperative jurisdiction” list (as the government meets the required criteria) — expected February 2026.
Tobago & Regional Allocations
Tobago will receive TT$3.724 billion total, including direct allocation and project funding from various ministries (about 6.3 % of the national budget).
The government has emphasized “regional equity” in disbursements.
⚠️ Challenges & Risks
Energy sector dependence & volatility: Many assumptions in the budget (e.g. oil price US$73.25 per barrel, gas price US$4.35/mmbtu) are aggressive relative to current market levels. If energy returns weaken, revenue projections could underperform.
Tight space for capital investment: With only ~TT$1.42 billion for capital spending, many infrastructure projects may remain underfunded or delayed.
Implementation & institutional capacity: Tax reforms, transfer pricing, regulatory changes, and monitoring will require strong agencies, technology, and compliance systems — weak capacity could hamper results.
Balancing relief vs sustainability: Many relief measures (fuel subsidy, VAT removal, wage increases) are popular, but sustaining them during revenue shortfalls or shocks will be challenging.
Political expectations & accountability: With many ambitious promises, the government will be judged on delivery. Any delays or failures could erode public trust.