ECA's Initial Reaction to 2025-26 National Budget Presentation [ARANGUEZ, 14 October 2025] The Employers’ Consultative Association of Trinidad and Tobago (ECA) extends its congratulations to the Minister of Finance and by extension, the new Government of Trinidad and Tobago, on the delivery of its first national budget statement. In what is a high-ambition presentation, the government has outlined a bold agenda, with some indicators geared towards recalibration as well as repositioning the State as a modern service platform rather than a gatekeeper or impediment to efficiency. We have noted particular emphasis on institutional reform, digital transformation of the State, enhancements to tax and customs administration, and measures aimed at safety, justice and trade facilitation. These initiatives are highly commendable and extremely encouraging. If execution matches intent, we see potential opportunities to lower transaction costs, improve business confidence, and create a more enabling environment for enterprise competitiveness. However, these reforms also carry significant execution risks if not sequenced carefully and supported by sustained consultation. Success will be heavily dependent on disciplined delivery, strengthening institutional capacity, driven by a commitment to high levels of accountability mechanisms, and genuine partnerships with stakeholders, including the business community, in order to minimise transitional pressures. Following a preliminary review, the ECA is pleased to share its initial reactions to the national budget presentation for the fiscal year, 2025/26. What We Liked Ease of Doing Business. The government has outlined some promising measures and objectives which, if realized, can be significant in respect of improving the ease of doing business and overall business confidence. Specific objectives to strengthen tax and customs administration such as the 18-month programme to upgrade the ASYCUDA system is particularly encouraging, in addition to the introduction of electronic payments at Customs, and the commitment to strengthen Inland Revenue through technology, staffing and training. Similarly, the move toward a single integrated payments backbone for all Government transactions has transformative potential. These are consistent with long-standing calls from the business community for relief in reducing processing delays and compliance bottlenecks and we remain optimistic that these goals will not only be realised but also translate into shorter processing times, reduced manual reconciliation, and improved financial transparency. VAT Refunds. The stated intent to clear the backlog of VAT refunds is encouraging, noting that no specific timeline or structure has been provided. The signal to review the VAT regime is a significant development, and we look forward to contributing to discussions around the feasibility of retaining or replacing the existing system. Notwithstanding, we welcome the recognition that the current system imposes liquidity stress on businesses. Financial and Economic Oversight Mechanisms. If structured with genuine and tripartite stakeholder participation and appropriately resourced with technical capacity, the formation of high-level oversight councils, such as the Economic Resilience Council (ERC) and the Financial Oversight & Appropriations Committee (FOAC), holds potential for ensuring greater discipline in capital allocation, the review of projects, and public expenditure management, an encouraging signal of transparency and accountability. What is Missing Workforce Skills and Human Development. We would have liked to see more emphasis being placed on enhancing and promoting technical and vocational educational pathways, especially through stronger school-to-work linkages and private sector involvement, as a step towards addressing existing gaps between our education curricula, the current needs of employers, and the skills required for the future of work. This could have included a dedicated effort to de-stigmatise and mainstream apprenticeship training at the national level along with measures to support study and employment in emerging industries, particularly the renewable energy sector, considering the medium to long term diversification goal. Strengthening the Industrial Court of Trinidad and Tobago. The Industrial Court is central to maintaining industrial peace and confidence in the country’s labour relations system. However, successive Presidents of the Industrial Court have lamented persistent challenges related to staffing shortages, outdated facilities, and limited technological capacity. While we took note of mention to fill certain public sector roles, and improve capacity in the Public Service, we believe that this important institution must be prioritised What are our Concerns Public Sector Measures. With a proliferation of contract work in the public service, which is symptomatic of deeper structural issues, the completion of the ongoing Job Evaluation exercise is much needed. In this regard, we acknowledge the Government’s commitment to addressing longstanding public sector contract employment trends. We have also noted the intent to revise the State’s offer in negotiations with the Civil Service, Statutory Authorities and THA to 10% for two (2) bargaining periods, 2014-2016 and 2017-2019. While these are public-sector decisions, these adjustments ultimately shape expectations across the wider economy. This may create some dissonance as employers in the private sector try to structure and balance parity expectations in respect of compensation with productivity, output, service delivery efficiency, and financial realities to ensure competitiveness is not eroded. Crime and Justice Measures. Crime is a major concern impacting businesses and citizens daily, and in a most brutal manner. In this regard, we welcome the stronger stance on justice and policing, noting the significant improvement in comparative crime statistics. However, with more than $73 billion spent on National Security over the last decade, we must now be more resolute in translating allocations to tangible outcomes and measurable reductions in crime statistics, without requiring States of Emergencies, and with much more prudence in the management and maintenance of tools and resources. National Insurance. In principle, one would be hard-pressed to oppose proposed measures aimed at securing the sustainability of the national insurance system. The NI scheme is now a cornerstone of our socio-economic safety net, especially for lower income households, and the current condition of the fund is a legitimate concern that requires timely reform. The phased adjustment in the retirement age is also consistent with demographic shifts, both locally and globally. However, we must highlight the prospect of increasing contribution rates for already compliant contributors without addressing existing compliance gaps to increase the contribution base or rising informality that continue to seriously strain system. Notwithstanding, we expect that much more detail on specific allocations, programmes and initiatives will be made available in the coming weeks as the budget debate ensues and supporting documents are released. In this regard, we will continue to examine these developments and elaborate further as more information is shared. ### For further information, kindly contact: Nirmal Maraj Public Relations and Research Department Telephone: 675- 5873, 638-6463 ext. 257 | E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
