Although T&T used up half of a billion dollars of foreign reserves over the past six months and is likely to use more for the rest of the year, the country should not be worried, Central Bank Governor Alvin Hilaire said yesterday.
The deficit incurred by Central Government in the first seven months of fiscal year (FY) 2017/18 was $2,909.8 million, down from the $8,991.1 million in the corresponding period a earlier.
According to the latest Monetary Policy Report from the Central Bank, the smaller deficit, was financed by borrowing primarily on the domestic capital market, some external multilateral loans and the use of the Central Bank overdraft facility.
As a result, the non-energy fiscal deficit fell to $9,233.2 million from a deficit of $12,263.6 million one year ago.
The finance ministers of the 28 European Union member states have removed two countries St Kitts and Nevis and the Bahamas from the blacklist of tax havens.
Trinidad and Tobago, however, remains one of only seven countries still blacklisted.
The communique of the Council of Finance Ministers confirmed the seven countries that remain on the blacklist: Guam, Namibia, Palau, Samoa, American Samoa, Trinidad and Tobago and the US Virgin Islands.
Moody’s Investments has noted a narrowing fiscal deficit credited to Government of Trinidad and Tobago’s restraint and an increase in energy and non-energy tax revenue following the mid-year review.
It also projects an Energy Sector-led rebound in growth to support the fiscal trajectory.