Economist; Imbert oil price at US$92.50 optimistic

Home*Cover Story*Government

Economist; Imbert oil price at US$92.50 optimistic

The financial position of the country is not where it should be.

This is according to Economist Vaalmikki Arjoon.

Speaking on the Power Breakfast Show on Power 102 Digital this morning he said the Finance Minister has doubled capital expenditure, which is a positive thing, since it is the most productive area of Gov’t expenditure.

However he cautioned Gov’t to complete projects in the shortest possible time.

The Finance Minister predicated the 2022/2023 Budget on an oil price of US92.50 per barrel and Natural Gas price of US6 per MMBTU, Valmiki noted energy prices are very volatile.

Arjoon said despite international agencies predicting high prices next year, one has to consider when their predictions were set, maintaining that it’s best to use the most recent predictions.

He also said the demand for oil globally has started to fall, therefore predicating such a high for the Budget is a bit optimistic. He noted an embargo due on Russian oil could also have a negative effect.

He disclosed the focus should now be on gas.

He said he felt one of the reasons the Finance Minister predicated the Budget on such a high price had to do with the Heritage and Stabilization Fund.

He maintained that the rise in gas prices will affect the cost of living fir everyone.