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Trinidad & Tobago 2011/2012 Budget Highlights

Key Macroeconomic indicators A fiscal deficit of 4.89% of GDP is projected for 2011 Real GDP is expected to contract by -1.4% in 2011 but grow by 1.7% in 2012 An annual average inflation rate of 7% is projected for 2012 Expenditure is based on an oil price of US$75 per barrel and gas price of US$ 2.75 per MMBTU Total Revenue for the fiscal year 2012 is expected to be $47 billion. Expenditure for 2012 is expected to measure $54.6 billion, with the fiscal deficit projected to reach $7.6 billion or 4.89 percent of GDP Areas of interest Social Programmes: i) Single mothers with inadequate income who are the sole caregivers of a special child to be paid grants. ii) Differently-abled individuals will automatically qualify for support under the Food Card Programme. iii) They will also have access to free transport from PTSC with plans to supply specially design buses for differently-abled. iv) Families with a disabled child will automatically receive TT Food Card support. v) A $5,000 scholarship for disabled persons wishing to further their education or to enter the labour market via business development training. National Insurance: i) National Insurance retirement pension will increase from $2,000 to $3,000. ii) Insurable monthly income ceiling to increase from $8,300 to $10,000. iii) Simplify national insurance benefits. iv) Self-employed to be incorporated into the system. v) A waiver on the payment of penalties and interest on outstanding contributions to National Insurance Board until June 30th 2012. Deposit Insurance: Deposit Insurance Corporation will increase coverage from $75,000 to $125,000 for deposit holders of commercial banks and licensed non-banks. Capital Market: i) Government to divest part of its ownership in Point Lisas Port Development Corporation Ltd, Trinidad & Tobago Mortgage Bank and First Citizens Bank via the Trinidad & Tobago stock exchange. ii) T&T stock exchange to establish a Small & Medium Enterprises (SME) market. iii) SMEs listed on the stock market will pay a reduced corporation tax rate of 10%. Customs: Computerized Customs Management System, ASYCUDA to be implemented in fiscal 2012 ­ which is aimed at improving the ease of doing business. Youth, Sports, Culture and Gender Issues: Construction of three mega sport facilities; the national cycle track, the national aquatic centre and the national tennis centre.

Tobago: Allocation - $2.2 billion An additional $510 million to be spent on the island by other Ministries Integrated campus facility housing UWI, UTT and COSTATT to be established Energy Start of construction of the CariSal plant to begin in 2012 at an estimated cost of US$430 million. VAT exemption for offshore drilling rigs and drill ships and other vessels associated with offshore activity. Fees have been increased for New Petroleum licenses, Marketing licenses and Marketing license fee for peddling operations (now re-named Authorized Distributors). License fees with respect to servicing, marketing and consumer refueling of compressed natural gas will also increase. New License fees have been introduced for road tank wagons and the transmission of natural gas based on the carrying capacity of the pipeline. Fine for the illegal export of petroleum products to increase from $10,000 to $150,000, $600,000 or 3,000,000 according to volume. Tax incentives to drive the usage of alternative fuels and energy include: A tax allowance of 50% of expenditure incurred in the retail dispensing of compressed and liquefied natural gas up to a maximum of $2 million. A 50% reduction of import duty on vehicles manufactured to use natural gas with engine capacity smaller than 2300cc Wear and Tear allowances of 130% of expenditure on the acquisition of plant, machinery and equipment for the purpose of providing CNG kits and cylinder installation service Wear and Tear allowances of 130% of expenditure on acquisition and installation of CNG kit and cylinder in a car. Wear and tear allowance of 150% of expenditure on specific costs related to the manufacture of solar water heaters, wind turbines and solar photovoltaic systems. Education: Allocation - $8.7 billion GATE facility will be government by more rigorous pay-for ­performance rules. Health: Allocation - $4.7 billion A programme to repair and upgrade current health and hospital facilities and the building of a new Children's Hospital. The expansion of the San Fernando Medical Complex to include the Naparima Medical Academy. Enhancement of the quality of healthcare with the introduction of an Accreditation Council, which will certify best practice standards. Health Information Management System to improve rapid transferring and confidentiality of patient information.

Housing: Allocation - $2 billion The reduction of TTMF rates from 6-8 percent to 5-7 percent in 2012 (this will be reviewed annually). New home purchase or construction subsidy to be raised to a maximum of $50,000 per household for homes costing $200,000 in Trinidad and $220,000 in Tobago. National Security: Allocation - $5.2 billion Special allowance of $1000 per month to be extended to other members of the protective services including the Fire and Prison Services, and the Defense Force. Initiation of street and community patrol via 250 new motorcycle patrol officers. City Surveillance Network Programme to be implemented in San Fernando and to other areas thereafter. Agriculture: Allocation - $1.9 billion Infrastructure: Allocation - $7 billion Establishment of a Public Private Partnership Unit in the Ministry of Finance to allow private sector entities to introduce their resources and expertise into infrastructure projects. Establishment of the National Infrastructure Bank Planned roll out of a nationwide high speed broadband network within two years. Fiscal Measures Board of Inland Revenue Given the authority to issue and utilize electronic invoicing. Threshold for VAT qualification increase from $200,000 to $360,000. Introduction of e-payment system in fiscal 2012 for the payment of taxes and duties on incomes and goods.

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