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Analysis of the Trinidad & Tobago National Budget 2025/2026

Message from the Managing Partner, Rikhi Rampersad

 

Business in 2025 and onwards, has multiple streams to navigate for growth and sustainable development. Globally, the transformation agenda continues to provide paths for competitive advantage whether through digital and AI solutions or the formation of new strategic alliances and supply chains. 

In the Caribbean, this remains true as well, as companies seek to expand and maintain operations, while elevating customer service to compete with new entrants and commercial models.

At home, in Trinidad and Tobago, the declarations made within the government’s 2025/2026 budget for increased production and exploration within the energy sector, once materialized, should support a boost for the economy by increasing GDP, and hopefully have the knock-on effect of stimulating enhanced domestic trade and strengthening much needed foreign reserves.  Investor confidence may also return with projected efforts regarding T&T’s international tax standing with external agencies. Increased investor confidence may fuel new projects and support the heightening of  domestic trade.  Innovation, education and technology development being set as priorities in programs and the national sector, may also act as an enabler of inputs needed by today’s business such as – skilled talent, improved infrastructure and telecoms to name a few.

As the year advances and with 2026 on the horizon, companies need to focus on their dynamic capabilities and innovation potential across processes, structure, technology and people.  The age-old challenges of doing business in the Caribbean persists – access to financing and foreign exchange, identification and retention of the skills and talent needed for growth and the opportunity cost decisions which need to be strategically taken to optimize the resources available. Strategic business thinking and scenario planning becomes more critical in the pursuit of resiliency.

The 2025/2026 National Budget was delivered on 13 October 2025 by the Honourable Minister of Finance, Mr. Davendranath Tancoo.

Economic Outlook

The 2026 budget, themed “Promises made, promises delivered”, focuses on economic diversification, critical infrastructure investment, and strengthening social resilience.

Budget Highlights

An overview of the Revenue and Expenditure projections, as well as the commodity prices underpinning the 2025/2026 National Budget.

$55.367B

Total Revenue

$59.232B

Total Expenditure

$3.865B

Fiscal Deficit

US$73.25

Oil price assumption (per barrel)

US$4.25

Natural gas price assumption (per MMBtu)

Key Initiatives include:

  • Upstream energy investments totaling over US$1.08 billion, including new offshore and onshore exploration blocks and progress on the Dragon gas project with Venezuela.
  • Divestment of state assets under the State Enterprises Investment Programme (SEIP), targeting improved efficiency and private sector participation.
  • Digital literacy programmes led by the Ministry of Education and Public Administration, including adaptive learning platforms, e-book access, and AI training.
  • Social programmes focused on youth development, vocational training, and community resilience.
  • Public sector wage negotiations, with budget provisions for a 10% salary increase expected to be resolved during fiscal 2026.

 

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