Devil in the details

Independent Senator and economist Dr Marlene Attzs says that while the 2025 National Budget aims to put “people first”, its benefits may be offset by hidden costs that will quickly be felt by ordinary citizens.

Speaking on Altos subsequent to the Budget presentation, Dr Attzs broke down the measures in her characteristic accessible style, warning that “the devil is in the details.”

“The Budget was very deliberate,” she began. “There was an attempt by Minister Davendranath Tancoo and the government to extend goodwill to the population. When you read the narrative behind his message, it was really about people first. He said the Budget is not just about fiscal policies and taxes—it’s about people and being people-centred.”

The $1 reduction in the price of super gasoline was greeted with public approval—“music to many persons’ ears,” as she put it—but Dr Attzs cautioned that this early relief was followed by a range of counter-measures. “There was a giving and a taking,” she said. “People started to realise that while they might have gained on one end, there were new costs elsewhere—additional Value Added Tax (VAT) items, the landlord surcharge, increased container fees, excise duties, and a 5 per cent environmental levy.”

The environmental levy and its ripple effects

Dr Attzs supported the levy’s environmental intent but warned of its immediate social impact. “I am all for it because we don’t preserve our environment enough,” she said. “But a 5 per cent levy on single-use plastics means that everything you use at your favourite fast-food restaurant—those plastic forks, the cup covers—will cost more. Think of the lady who makes twenty lunches, or the doubles vendor serving customers on a red Solo cup with a straw—that’s going to impact them.”

Even if such vendors do not import the items directly, “the distributor or wholesaler from whom they buy will pass on the cost,” she noted. “Ultimately, it trickles down to us—the consumers.”

Landlord Surcharge and pension implications

The senator also highlighted the new voluntary landlord registration scheme, which requires property owners to pay a one-time fee of $2,500 and declare their rental income. “For someone who’s retired and decides to rent out two rooms to supplement their income, that’s significant,” she explained. “It’s voluntary, unlike the property tax, but once declared, it could affect what that person is eligible to receive in pension. That’s one of the ‘devil-in-the-details’ moments.”

‘Deficit’ not always a dirty word

On the issue of the $3 billion fiscal deficit, Dr Attzs argued that the term should not automatically cause alarm. “Deficit budgets aren’t by themselves bad things,” she said. “If you’re building a house, you may go to the bank for a loan—that’s a debt, but it’s an investment. If the government’s over-expenditure is being put to productive use, particularly in the non-energy sector, that’s acceptable. But if you incur debt to buy clothes, that’s not an investment.”

She added that Trinidad and Tobago’s public debt, now “close to 80 per cent of GDP,” was “a little concerning,” but could be manageable if the funds are directed toward stimulating growth.

Promises, pay and public perception

The 10 per cent salary increase for public-sector workers was another headline item—but one for which, she observed, no explicit funding appears in the Budget details. “I think it will be paid,” Dr Attzs said, “but it will add to the expenditure and therefore to the deficit. The Prime Minister has given the directive, so it’s not a question of if but when.”

She suggested that many citizens experienced “the shortest-lived euphoria” after the Budget announcement. “By the second or third day, when they realised prices were rising overnight because manufacturers and producers were adjusting, the celebration was over,” she said.

Dr Attzs also touched on the planned increases to National Insurance Scheme (NIS) contributions—3 per cent in 2026 and another 3 per cent in 2027. While acknowledging the need to stabilise the nearly insolvent National Insurance Board (NIB) fund, she said more detail was required: “I would like to hear an architecture around not just the rate but how we ensure we capture everyone who is supposed to be paying. The headline on the NIS is causing some convulsions, particularly among persons nearing retirement. They’re asking, ‘Do I have to wait until 65 to get a pension? What happens if I planned to retire next year?’”

As the Budget debate unfolds, Dr Attzs believed clarity will be key. “There’s a lot to unpack,” she said. “Hopefully, when the ministers make their presentations, we can see exactly what the additional expenditure is for. For now, it’s a case of wait and see—but the devil, as always, is in the details.”

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