Trinidad and Tobago: Senator Calls for Clarification on Decline in Reserves

This report covers trinidad tobago: senator calls with key details and context.

PNM Senator Vishnu Dhanpaul has called on the Trinidad and Tobago government to clarify a significant decline in the country’s net official reserves, which dropped by nearly US$600 million from May to August 2025, according to data from the Central Bank’s Economic Data Pack. The reserves were reported at US$5.093 billion in May but fell to US$4.6 billion by August.

Dhanpaul expressed concerns about this decline during a media briefing at the Opposition’s headquarters in Port of Spain on October 8, particularly in light of the upcoming national budget on October 13. He highlighted that the reserves were at US$5.463 billion in November 2024 and US$5.272 billion in March 2025, indicating a troubling trend that began in April.

Dhanpaul warned that a rapid decline in reserves could indicate potential balance of payments issues, suggesting that the International Monetary Fund (IMF) might need to be involved if the situation does not improve. He stated, “The decline in reserves is alarming and requires immediate attention from the government to ensure economic stability.”

trinidad tobago: senator calls: key developments so far.

In addition to the reserve concerns, Dhanpaul criticized the government for what he termed a “budget date fiasco” and a lack of fiscal transparency. He advocated for the establishment of a fixed budget date to alleviate uncertainty. He outlined the country’s fiscal challenges, noting a mandatory monthly expenditure of approximately $4.5 billion, which could lead to a projected deficit of $9 billion for fiscal 2025.

“The uncertainty surrounding the budget date creates confusion and hampers effective planning for both the government and the citizens,” Dhanpaul remarked. He emphasized the importance of transparency in fiscal matters to foster public trust and confidence in the government’s financial management.

Dhanpaul also raised concerns about the government’s decision to abandon the TT Revenue Authority, estimating that this could result in a loss of up to $5 billion in annual revenue. He stated, “The decision to dismantle the TT Revenue Authority could have significant implications for our revenue collection and overall fiscal health.”

He emphasized the need for sound policy responses and expressed hope for the Finance Minister’s success, stating that the performance of the current administration should be judged independently of past governments. Dhanpaul concluded by urging the government to take immediate action to address these pressing issues and restore confidence in the nation’s economic management.

As the national budget approaches, the scrutiny on the government’s fiscal policies and management of reserves is expected to intensify. Stakeholders from various sectors are likely to monitor the developments closely, as the implications of these financial trends could affect the broader economy of Trinidad and Tobago.