The mid-year review did not contain any surprises, says AMCHAM T&T.
The body, which is headed by Patricia Ghany, said on Friday that it was of the firm view that the support to business has not been comprehensive enough.
AMCHAM, however, acknowledged that the Government has managed to maintain social stability and cushion the impact of the COVID-19 pandemic on significant sections of the most vulnerable.
The T&T Chamber of Industry and Commerce meanwhile said it has recognised that the country is in a difficult position given the current scenario.
In light of the developments in the international commodity market since the delivery of the 2019/2020 budget, it was necessary to revise the budgeted oil price to US$45 per barrel from US$60, the Chamber said. It noted that based on the uncertain demand for fuel in the coming months, even US$45 per barrel may be optimistic.
“Given the collapse of current prices for LNG, ammonia and methanol, the reduction of the budgeted gas price to US$2.90 per MMbtu from $3.00 may not be conservative enough especially given the importance of natural gas to our economy.
“Based on our concern as it relates to the revenue projections, we believe that the projected deficit may be understated,” the Chamber said.
Imbert’s new oil and gas projections that were announced in the Parliament yesterday were for fiscal year 202 and not the present budgetary period.
It added that it believes the projected decline of 2.4 per cent of GDP for 2020 does not appear to be aligned with the realities of the fall in energy prices and reduced domestic economic activity, now compounded by COVID-19 measures.
The chamber noted that the outlook to rebound to 4.7 per cent economic growth levels in 2021 is aggressive in comparison to historical low growth trends, projected energy prices, sluggish global demand, along with containment measures that may have to remain in place until a vaccine is found for COVID-19.
It acknowledged, however, that Imbert has made progress with regard to the payment of VAT refunds and looks forward to the final settlement of this matter.
The chamber added that Imbert did not address the issue of settling arrears to government suppliers, which he committed to on March 18, 2020.
“Against the current economic backdrop, it is even more crucial that we spend wisely, it is important to have the necessary framework to allow for transparency and accountability of government funds,” the chamber said.
It also called for the finalisation of the Public Procurement Regulations and approval by Parliament to allow the act to be fully proclaimed and implemented.
The chamber continues to advocate for the implementation of the Trinidad and Tobago Revenue Authority (TTRA), saying this is long overdue.