Deficit budgets over an extended period of time as is the case of Trinidad and Tobago could have implications moving forward.
It’s a point raised by former Minister of Finance, Mariano Browne, on the Power Breakfast Programme on Power 102 Digital this morning as he responded to a question posed to him on his views of the national budget presented on Monday.
He said the majority of budgets delivered in the past were deficits and while this move could mean emphasis is being placed on stimulating the economy as is usually the approach when things are not strong economically or when focus is placed on particular sectors, such a move has to be used over a prolonged period of time and this is cause for concern.
Mr Browne said government’s push towards digitalization is a step in the right direction especially in light of the existence of artificial intelligence and changes which must be carried out amid global developments.
He also commented on borrowing to finance deficit budgets warning this situation must be closely monitored especially if economic growth is not striving.