The failure of the PNM Government to effect credible fiscal consolidation, compatible with revenue earnings from the energy sector is the reason for the downgrade of T&T’s economy in a recent Moody’s report.
This is according to Member of Parliament for Oropouche West Mrs. Vidia Gayadeen Gopeesingh.
In a statement she revealed that government expenditure has been rigid downward.
She said that nominal wages, subsidies and transfers account for at least 70 percent of government spending, while there has been no measurable increase in productivity across state enterprises or the public sector.
Inefficiency and corruption continue to drag the economy and no attempt has been made to build an internationally competitive labor market capable of competing and surviving existing international challenges.
She said that in a globalized economy investors use all available information.
The origin of the downgrade she stated, will deter foreign investment.
This she maintained will lead to continued over utilization of the Heritage and Stabilization Fund (HSF); and Trinidad and Tobago’s economy will continue to shrink or even sustain negative growth.