The Communication Workers’ Union (CWU) has warned that the 2026 national budget risks worsening cost-of-living pressures and eroding the real incomes of workers, especially those in lower-income and informal sectors.
In a detailed analysis, the union said the government’s continued deficit spending and growing debt burden could “crowd out capital and social spending,” while new levies—such as the electricity charge and landlord business tax—would ultimately pass costs on to ordinary citizens.
“The citizens are no longer interested in promises made but proper governance from the hands of the PNM administration who have glaringly showed the country they did not care,” the CWU said.
It argued that while public sector wage increases and a higher minimum wage may raise nominal income levels, inflation and higher costs for food, fuel, and utilities could wipe out those gains. “The budget’s nominal compensation measures are necessary but likely insufficient in many instances to produce substantial improvement in purchasing power across the board,” the union said.
The CWU also expressed concern that revenue projections rely too heavily on “overly optimistic” expectations for the energy sector, including up to $6 billion in not-yet-realised income from the Dragon Gas Field and deepwater exploration. It noted that new borrowing, one-off asset sales, and temporary levies do not offer a sustainable foundation for growth.
While the union welcomed commitments to continue funding health, security, and education, it said most of the government’s promises rest on uncertain fiscal footing.
“The 2025/26 budget tries to strike a difficult balance between delivering on political promises and confronting structural fiscal constraints,” the union said. “But if any element falters—if tax collection underperforms, energy revenues slump, or the cost of living spikes—the budget could overpromise and underdeliver, leading to stagnating or declining purchasing power for much of the population.”
