The Trinidad and Tobago government is projecting to spend nearly TT$60 billion in the upcoming fiscal year, with the 2026 national budget pegged at TT$59.232 billion.
Finance Minister Davendranath Tancoo presented the budget on Monday, outlining planned expenditures based on an oil price of US$73.25 per barrel and a gas price of US$4.35 per mmbtu. Current global market prices are notably lower, with WTI crude trading around US$60 and Brent crude at US$63.50, while natural gas stands at US$3.09 per mmbtu.
“We expect total revenue of $55.367 billion and a total expenditure of $59.232 billion with a fiscal deficit of $3.865 billion,” said Tancoo, noting the deficit represents about two per cent of GDP, within the international benchmark of three per cent.
The education and training sector will receive the largest allocation at $8.76 billion, followed by health ($8.21 billion), national security ($6.36 billion), public utilities ($3.39 billion), and infrastructure ($1.94 billion).
“When the UNC wins, everybody wins,” Tancoo added, crediting Prime Minister Kamla Persad-Bissessar for several of the budget’s key measures.
Relief Measures and “Winners”
The budget includes a range of measures offering relief to citizens, including:
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A $1 per litre reduction in super gasoline, effective immediately.
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Tax exemption on private pensions starting January 1, 2026.
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Removal of VAT on several basic food items from October 17, 2025.
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Relaxation of import restrictions on foreign used vehicles — increasing the permissible age from three to six years for cars and from seven to ten years for vans and pickups starting January 1, 2026.
Public servants will also receive a 10% wage increase and back pay, reversing the previous government’s 4% offer. “Promise made, promise kept because when UNC wins, public servants win,” Tancoo said.
Tobago will receive a larger-than-usual share of national spending, with $2.96 billion directly allocated and an additional $763 million from other ministries, totaling $3.724 billion, or 6.3% of the national budget.
Support for Agriculture
Farmers will benefit from VAT and customs duty removal on agricultural machinery, greenhouse and hydroponic equipment, and animal feed for poultry, cattle, and pigs from January 1, 2026.
Fiscal Adjustments and “Losers”
The Finance Minister also announced new or increased taxes targeting specific sectors and behaviors:
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NIS contribution increase of 3% in January 2026, followed by another 3% in 2027.
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Landlord business surcharge of 2.5–3.5% on rental income, effective January 2026.
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Electricity surcharge of $0.05 per kWh for commercial and industrial customers, yielding $269 million annually.
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Asset levy of 0.25% on commercial banks and insurance companies, projected to raise $575 million.
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Higher duties on alcohol and cigarettes — doubling the rate on rum, beer, and tobacco products.
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Removal of tax breaks on luxury electric vehicles valued over $400,000.
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Increased fees for container processing, wildlife permits, and tyre disposal, generating an additional $1 billion in revenue.
Programme Overhaul and New Taxes
Tancoo announced the elimination of CEPEP and URP, to be replaced with “full-time, better-paid jobs” through an Employment Fund valued at $475 million.
Other measures include:
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A 5% tax on single-use plastics at importation.
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Removal of duty-free concessions on vehicles for returning nationals.
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Creation of a $5 million Women’s Health Fund to address period poverty and provide free menstrual kits in schools.
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A forthcoming transition from VAT to a sales tax and clearing of the VAT refund backlog.
The Finance Minister also pledged stronger penalties for reckless driving, illegal lotteries, and environmental violations, emphasizing efforts to “end state funding of criminal gangs” and boost lawful revenue collection.
The budget debate resumes Friday at 10 a.m. when Opposition Leader Pennelope Beckles delivers her response.
