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UNC not in power and not important at this stage.MaxPower wrote:Both PNM and UNC are incompetent in fighting crime.
Does not matter who crime rate was higher than the other, the fact is both had/has horrendous and embarrassing figures.
sMASH wrote: at least when unc theif we still got highway started, 100+ schools started, hospital started, free laptops, wage negotiations settled, minimizing of job losses.
sMASH wrote:everyone, repeat after zoom:
unc is not the government
Habit7Habit7 wrote:When you think bringing up UNC advantageous to your pointsMASH wrote: at least when unc theif we still got highway started, 100+ schools started, hospital started, free laptops, wage negotiations settled, minimizing of job losses.
After UNC is made to account and can't stand the jammingsMASH wrote:everyone, repeat after zoom:
unc is not the government
You continue to repeat after zoom. He is a living caricature of you.
It's gonna be raided againsMASH wrote:How is the HSF looking these days?
I want DhabbitMan7 to say.zoom rader wrote:It's gonna be raided againsMASH wrote:How is the HSF looking these days?
1.8 billion short fall , Petrotrin and Pt lisas discimated .
Lazy government, but their family pockets filled.
Take bull
sMASH wrote:How is the HSF looking these days?
Habit7 wrote:sMASH wrote:How is the HSF looking these days?
Rel good u know.
US$5.8B in Nov 2020 even after govt withdrew US$1B to support the fallout from the pandemic and collapse in hydrocarbon prices and production.
I know you will be happy to hear, thanks for your concern.
T&T, we have a problem.
We are not making nearly enough money to pay our bills.
In fact, we made almost $2 billion less than we expected to make by the end of January.
And if the trend continues, we may lose up to $5 billion in revenue for fiscal 2021. This figure does not include the expected $5 billion shortfall already predicted for fiscal 2021.
This was the sobering information revealed by Finance Minister Colm Imbert yesterday during a virtual press conference to update the country on the “Actual Fiscal Outturn for Trinidad And Tobago for the first four months of Fiscal 2021.”
Imbert said the official budget estimate of revenue for the period October 1, 2020 to January 31, 2021, which represents the first four months of the fiscal year, was $13.823 billion.
“However, primarily as a result of the adverse effects of the pandemic, the actual revenue collection for this four-month period was $12.020 billion, a negative variance of $1.803 billion, or 13 per cent less than the estimates,” he stated.
Imbert said the shortfall in revenue occurred in several areas including taxes on Income and Profits which was down by $436 million compared with estimates.
A significant portion of that shortfall was as a result of the decrease in tax revenue received from oil and gas companies which was a direct result, he said, of depressed prices for oil and gas and lower than expected production volumes.
In addition to this, non-tax revenue dropped by $1.430 billion or 35 per cent of what was expected, Imbert said.
“The effect of all this is that the Government has been seriously challenged in the first four months of the financial year to find the money necessary to keep the country running and to meet mandatory commitments and has had to resort to loan financing and withdrawals from the Heritage and Stabilisation Fund, to make up the deficit between income and expenditure,” Imbert said.
“We have so far borrowed $3 billion for direct budgetary support and withdrawn the equivalent of a further $2 billion from the Heritage and Stabilization Fund, simply to pay salaries and wages and pensions and keep our health sector functioning in the face of the demands of COVID-19,” he said.
Despite the financial constraints, Imbert said the payment of salaries and wages for the approximately 90,000 workers in the public sector has been the “top priority”.
Imbert said the “mandatory payments” cost the country a “staggering $3.5 billion per month, each and every month.”
The Finance Minister described the current financial situation is “unsustainable”, and going forward, there must be a change in the country’s approach.
In the last three years, the support to the Water and Sewerage Authority (WASA) has been $7.28 billion.
While the Trinidad and Tobago Electricity Commission (T&TEC) requires the support of over $800 million a year to pay for the gas used to produce electricity and to service a series of loans.
Imbert lamented that subsidies and transfers that make up almost 50 per cent of the annual budget.
To deal with the difficulties Imbert said additional unbudgeted borrowing and further withdrawals from the HSF for this year may be necessary.
“With a persistent budget deficit and uncertainty as to when the global and local economy will fully recover from the destructive effects of COVID-19, we simply can’t afford significant wage increases at this time,” Imbert said.
“Simply put, if excessive wage increases are granted in the state sector, then employment levels may have to be reduced, because the additional money simply isn’t there,” he said.
What's your thoughts,?Redman wrote:So Smash want are your thoughts on the HSF?
Yawn doh beat upelec2020 wrote:It not going to take long for zoom racist to get banned again... what the color of someone's skin have to do with their ability to lead? the guy can't help but be racist and spew toxicity with each and every post
zoom rader wrote:What's your thoughts,?Redman wrote:So Smash want are your thoughts on the HSF?
sMASH wrote:zoom rader wrote:What's your thoughts,?Redman wrote:So Smash want are your thoughts on the HSF?
my thoughts are, we implemented a whooolllllle tonne of austerity measures, and still have to dip into savings.
and my viewpoint before implementing the austerity measures, was to keep certain things going, to keep the people employed and get the revenue from the emplyement taxes, while keeping people away from social services, which is also a drain with no income. also, how much revenue ur getting from methanex titan plant, and the yara tringen 1 plant, and a few other of the mhtl plants?
we spending money on things like lng train1 TAR, which will have little return if as is, or none cause u have to divert gas from pt lisas to get them to produce. one way is to not spend money and earn with ur productive plant as is, the other way to spend 300m to earn the same money by diverting away from pt lisas.
we spending money on port and highway in toco, that will not be any use for the next near decade. the roi on that might be two decades, so dont spend that money nowwwww.
u have to dip in the HSF, but because ur spending money on nonsense.
thebalance.com wrote:
Austerity Measures, Do They Work, with Examples
How and Why They Were Used in the United States, Europe and Greece
By Kimberly Amadeo
Reviewed by Eric Estevez
Updated November 29, 2020
Austerity measures are reductions in government spending, increases in tax revenues, or both. These harsh steps are taken to lower budget deficits and avoid a debt crisis.
Governments are unlikely to use austerity measures unless forced to do so by the bondholders or other lenders. These measures act like contractionary fiscal policy. They slow economic growth. That makes it even more difficult to raise the revenue needed to pay off sovereign debt.
Austerity measures require changes in government programs. For example, they:
Limit the terms of unemployment benefits.
Extend the eligibility age for retirement and health care benefits.
Reduce government employees' wages, benefits, and hours.
Cut programs for the poor.
Austerity measures also include tax reforms. For example, they:
Raise income taxes, especially on the wealthy.
Target tax fraud and tax evasion.
Privatize government-owned businesses. These are industries considered vital to the state's interest. They include utilities, transportation, and telecommunications. Selling them will raise revenue to pay off debt.
Increase value-added taxes.
Other austerity measures reduce regulations to lower business costs. They require governments to:
Remove some of the protections against wrongful terminations.
Lower or eliminate the minimum wage.
Increase workers' hours.
Austerity measures may not include all of these changes. It depends on the country's situation.
Key Takeaways
Austerity measures are government policies that lower their debt by raising taxes or limiting spending.
These measures are undertaken by countries with large debt-to-GDP ratios.
It is best to employ austerity measures when the economy is expanding since the base of tax contributors is higher.
Austerity measures impact low income earners the most, as social safety nets are impacted by spending cuts.
Why Countries Agree to Austerity Measures
Countries use austerity measures to avoid a sovereign debt crisis. That's when creditors become concerned that the country will default on its debt. It occurs when the debt-to-gross domestic product ratio is greater than 77%. That's the tipping point, according to a study by the World Bank.1 It found that if the debt-to-GDP ratio exceeds 77% for an extended period of time, it slows economic growth. Every percentage point of debt above this level costs the country 1.7% in economic growth.
The tipping point for emerging market countries is 64%. If the debt-to-GDP ratio is higher, it will slow growth by 2% each year. Creditors then start demanding higher interest rates to compensate them for the higher risk.
Higher interest rates mean it costs the country more to refinance its debt. At some point, it realizes it can't afford to keep rolling over debt. It then turns to other countries or the International Monetary Fund for new loans. In return for bailouts, these new lenders require austerity measures. They just don't want to bankroll continued spending and unsustainable debt.
Austerity measures restore confidence in the borrowing country's budget management. The proposed reforms create more efficiency and support a stronger private sector. For example, targeting tax evaders brings in more revenue while supporting those who do pay their taxes. Privatizing state-owned industries brings in foreign expertise. It also encourages risk-taking and expands the industry itself. Instituting a VAT or value-added tax reduces exports by making them more expensive. This protects local industries, allowing them to grow and contribute to the economy.
Examples
Greece - In 2014, the European Union imposed austerity measures during the Greek debt crisis. Greece's austerity measures targeted tax reform. Lenders required Greece to reorganize its revenue collection agency to crack down on evaders. The agency targeted 1,700 high-wealth and self-employed individuals for audits. It also reduced the number of offices and set performance targets for managers.2
Other specific measures required Greece to:2
Reduce overall government employment by 150,000.
Lower public employees' wages by 17%.
Reduce pension benefits above 1,200 euros a month by 20%-40%.
Raise property taxes by 3-16 euros per square meter.
Eliminate the heating fuel subsidy.
The Greek government agreed to privatize 35 billion euros in state-owned assets by 2014. It also promised to sell an additional 50 billion euros in assets by 2015. The IMF Memorandum provides more details on this.3
Layoffs, tax hikes, and reduced benefits curbed economic growth. By 2012, Greece's debt-to-GDP ratio was 175%, one of the highest in the world.4 Greece's recession included a 25% unemployment rate, political chaos, and a weak banking system.5
European Union - The Greek debt crisis led to a crisis in the eurozone. Many European banks had invested in Greek businesses and sovereign debt. Other countries, like Ireland, Portugal, and Italy, had also overspent. They took advantage of low interest rates as eurozone members. The 2008 financial crisis hit these countries hard. As a result, they needed bailouts to keep from defaulting on their sovereign debt.
Italy - In 2011, Prime Minister Silvio Berlusconi increased health care fees. He also cut subsidies to regional governments, family tax benefits, and the pensions for the wealthy. They voted him out of office. His replacement, Mario Monti, raised taxes on the wealthy, raised eligibility ages for pensions, and went after tax evaders.
Ireland - In 2011, the government cut its employees' pay by 5%.6 It reduced welfare and child benefits and closed police stations.
Portugal - The government cut wages by 5% for top government workers.6 It raised VAT by 1% and increased taxes on the wealthy. It cut military and infrastructure spending. It increased privatization.
Spain - Spain raised taxes on the wealthy. It also increased tobacco taxes by 28%.7
United Kingdom - The U.K. eliminated 490,000 government jobs, cut budgets by 19%, and increased the retirement age from 65 to 66 by 2020.8 It cut the income tax allowance for pensioners and reduced child benefits.
France - The government closed tax loopholes. It withdrew economic stimulus measures. It increased taxes on corporations and the wealthy.
Germany - The German government cut subsidies to parents.9 It eliminated 10,000 government jobs and raised taxes on nuclear power.
United States - Although it was never called by the name "austerity measures," proposals to reduce the U.S. national debt took center stage in 2011. A stalemate over these austerity measures led to the U.S. debt crisis. Spending cuts and tax increases became an issue. Congress refused to approve the Fiscal Year 2011 budget in April 2011, almost shutting down the government. It averted disaster by agreeing on mild spending cuts.
In July, Congress threatened to default on the U.S. debt by not raising the debt ceiling. It again averted disaster when the two parties agreed to a bipartisan commission to study the matter. Congress also imposed a budget sequestration if nothing was resolved. This mandatory 10% budget cut would occur, along with tax hikes, in a situation known as the fiscal cliff.10 11 Congress resolved it with a last-minute agreement. It delayed sequestration, raised taxes on the wealthy, and allowed a 2% payroll tax credit to expire.12
Why Austerity Measures Rarely Work
Despite their intentions, austerity measures worsen debt and slow economic growth. In 2012, the IMF released a report that stated the eurozone's austerity measures may have slowed economic growth and worsened the debt crisis.13 But the EU defended the measures.14 15
It said they restored confidence in how countries were managed. For example, Italy's budget-cutting calmed worried investors, who then accepted a lower return for their risk. Italy's bond yields dropped. The country found it easier to roll over short-term debt.
The timing of austerity measures is everything. It’s not a good time when a country is struggling to get out of recession. Lowering government spending and laying off workers will reduce economic growth and increase unemployment. The government itself is an important component of GDP. Likewise, raising corporate taxes when businesses are struggling will only cause more layoffs. Raising income taxes will take money out of consumers' pockets, giving them less to spend.
The best time for austerity measures is when the economy is in the expansion phase of the business cycle. The spending cuts will slow growth down to a healthy 2%-3% rate and avoid a bubble.16 At the same time, it will reassure investors in public debt that the government is fiscally responsible.
UNC not important at this stage nor do they have any power.MaxPower wrote:What more can the PNM want.
They have the UNC and now the pandemic to blame for any inefficiencies.
PNM still has my vote, UNC continues to make themselves unimportant and has yet to convince me otherwise that they they can do better.
thats pnm 5 years from now. he voting the future pnm in.MG Man wrote:MaxPower is the kind of guy who takes a sharpie to the polling booth and scribbles 'Nicky Maduro xoxoxoxo' on his polling card
Dizzy28 wrote:
TBH Trinidad and the average Trinidadian hasn't actually experienced Austerity. Austerity is actual hardships through sacrifice.
What have we had to give up?
Smash you taking this zoom obsession and worship to a whole other level now.. kinda sus rn.sMASH wrote:everyone, repeat after zoom:
unc is not the government
again,
unc is not the government
in case u went by the fridge
unc is not the government
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