Finance Minister Tancoo projects a $3.6 billion deficit. Senior, disability and public assistance grants rise $250 a month, while petroleum companies and non-resident investors face higher taxes.
Finance Minister Davendranath Tancoo presented a TT$63.368 billion budget for fiscal 2027 in the House of Representatives on Monday. It projects revenue of $59.729 billion and a deficit of $3.639 billion, or 2.1% of GDP. It raises the Senior Citizens’ Pension, the Public Assistance Grant and the Disability Assistance Grant by $250 a month.
The budget assumes oil at US$77 a barrel and natural gas at US$5 per MMBtu, up from US$73.25 and US$4.25 in 2026. Oil revenue is estimated at $14.355 billion and non-oil revenue at $45.062 billion. For fiscal 2026, the statement projects a deficit of $7 billion, with revenue of $54.247 billion and expenditure of $61.247 billion.
Health gets $8.061 billion, Education and Training $8.033 billion and National Security $7.321 billion. Public Utilities are allocated $4.087 billion, Rural Development and Local Government $2.323 billion, Infrastructure $2.081 billion, Transport $1.712 billion, Agriculture $0.987 billion and Housing $0.904 billion.
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Selected central fiscal allocations announced on October 12, 2026
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Grants and relief
The grant increases take effect Jan. 1, 2027. They will reach about 124,000 senior citizens, 13,637 public assistance recipients and 28,000 people on disability assistance, more than 165,000 people in all, at an extra cost of $555 million, the statement says. It says the Senior Citizens’ Pension was last raised 12 years ago. The personal allowance for pensioners rises from $90,000 to $102,000 a year, giving about $11 million in tax relief.
The budget also introduces a charge of five cents per kilowatt-hour on residential electricity use above 3,000 kWh per billing period. The charge will help fund subsidies for very low-use households.
Revenue measures
The Unemployment Levy on petroleum companies’ taxable profits rises from 5% to 8% from Jan. 1, 2027, raising an expected $155 million. Withholding tax on distributions to non-resident individuals and companies rises from 8% to 10%, and to non-resident parent companies from 3% to 5%, raising $25.1 million.
VAT will apply to digital services supplied by non-resident providers from March 1, 2027, raising $18 million. Carried-forward business losses will be limited to 75% of chargeable profits, and deductions will be disallowed for expenses incurred in earning exempt income. A $100 fee for VAT clearance certificates is expected to raise $500,000.
Selected zero-rated items will become VAT-exempt from Jan. 1, 2027, while zero-rating is kept on selected basic items. Tancoo said these goods will still carry no VAT at the point of sale.
Alcohol, tobacco and vaping
Excise rates on alcoholic beverages fall 25% and extend to imports, and imported alcohol moves from duties by volume to an ad valorem customs duty. Vaping in public places and sales of vaping products to people under 21 will be banned, with a 20% customs duty on vaping products and devices. Controls on tobacco distribution tighten, and importing 800 or more cigarettes will require a license. The foreign currency declaration threshold for travelers rises from US$5,000 to US$10,000.
Compliance and penalties
All taxpayers will be required to file electronically through the GENTAX system. Penalties will be introduced for overdue VAT returns, and the maximum penalty for false customs declarations doubles from $125,000 to $250,000. The maximum fine for unpaid National Insurance contributions doubles from $4,000 to $8,000, while the National Insurance Board will be allowed to waive statutory penalties, subject to oversight.
Fuel and public servants
Tancoo said the government has kept fuel prices constant, absorbing $290 million in fiscal 2026 to hold super gasoline $1 a litre lower than it would be. For public servants, the budget allocates funds for 40% of outstanding arrears in cash, $252 million for new National Union of Government and Federated Workers wage rates and cost-of-living adjustments, and $510 million for arrears. The statement describes this as close to $2.5 billion for current and retired public officers.
Education, youth and infrastructure
The budget allocates $16.3 million to improve practical training facilities and materials in secondary schools, covering welding, plumbing, electrical work, automotive studies and agriculture. A further $2 million will fund four-week internships in July and August 2027 for about 1,300 secondary-school students, each receiving a $1,500 stipend.
On infrastructure, the budget adds $15 million for road rehabilitation and $20 million for preliminary work on the Chaguanas Ring Road. It also pursues investment in energy, manufacturing, agriculture, tourism and housing.
Savings, investment and the economy
A Government Savings Bond Programme will let citizens invest amounts such as $1,000, $5,000 or $10,000 at fixed rates, in both TT and U.S. dollars. The budget also proposes reforms to foreign investment rules and the regulation of virtual assets.
The statement says real GDP contracted 1.8% in the first quarter of 2026, with the energy sector down 2.8%, and that inflation was 0.6% in July. Net official reserves stand at US$5.4 billion, equal to 6.2 months of import cover. The government has borrowed more than $21 billion in 18 months to refinance debt it blames on the former PNM administration, with another $70 billion due over five years, the statement says.
This report is based on the 2027 Budget Statement presented by Finance Minister Davendranath Tancoo in the House of Representatives.