The Government cannot afford to get rid of the fuel subsidy entirely. This is because T&T is still fuel dependent and complete removal of the subsidy could have could severely affect the economy.
This is according to Political Scientist Rhoda Bharath.
She made the comments on the Power Breakfast Show on Power 102.1fm this morning.
The fuel subsidy is one area that will be focused on today as the Government gives its Mid-Term Budget Review in the House of Representatives, which sits from 1.30 pm.
In his presentation, Imbert will provide the population with a picture of the current state of this country’s economy and chart the Government’s economic strategies going forward.
This will be done when he moves a motion in the House to approve the Second Report of the Standing Finance Committee.
Bharath revealed that while she believed the fuel subsidy would be a major issue the Government simply could not afford to get rid of it completely.
She stated that there was a exploitative aspect to business where prices would go up as soon as change was announced.
She cited the Finance Minister’s announcement late last year that there would be a decrease in VAT as one example.
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She also opined that the population understood that T&T was in a recession and that sacrifices had to be made.
Political Scientist Rhoda Bharath.