Finance Minister Vishnu Dhanpaul is questioning whether the United National Congress (UNC) plans to “decimate” the Heritage and Stabilisation Fund to finance their unrealistic promises.
Speaking at a PNM’s Cottage Meeting in Westmoorings on Tuesday evening, he warned, “You will start off in a good, good spirit; you may even drink a good, good spirit, but guess what? Six months later, you’re looking for a job because the first thing the IMF does is restructure your public service.”
Minister Dhanpaul explained that the UNC would have to borrow a significant amount of funds to finance some of its promises being made on the political platform. He believes those promises are unrealistic.
“Promises, promises. How to bankrupt a country in six months, UNC-style.”
He also questioned how the UNC intends to immediately pay for all these promises, noting that their expenditure-increasing measures will drive fiscal deficit close to $20 billion. He said T&T would be beyond “junk status” by the various credit rating agencies.
“Why have they remained so silent on the Heritage and Stabilisation Fund? Is there a plan to decimate the Heritage and Stabilisation Fund by using it to finance this $20 billion deficit?”
Mr. Dhanpaul also warned the population of the UNC’s plans with devaluation, calling it a “strange obsession.”
“For those of us with kids studying abroad, just double the fees, the tuition fees; just double the accommodation.”
He said, though, that if elected, the People’s National Movement (PNM) government would engage in “aggressive diversification,” pointing out that there could be “successful economic management without punishing the population.”
“Given what is happening in the energy sector, it’s a case now where we do or die. I can’t put it any milder, and we have to be aggressive, especially, hopefully things will work out with Sandals in Tobago; we have to be aggressive with the agricultural sector.”
Trade Minister Paula Gopee-Scoon added that the launch of the Special Economic Zones would assist in the diversification thrust.
“Which offers incentives to both local and foreign investors and I think there’s been considerable focus, and I can tell you already there are the traditional distributors who we recognise have taken the leap of faith and have actually entered other areas, tourism and manufacturing.”