Increased social assistance grants, new tax measures, expanded youth internship opportunities and billions of dollars in spending on healthcare, education and national security are among the major announcements in Trinidad and Tobago’s 2026–2027 national budget.
Finance Minister Davendranath Tancoo presented the budget on October 12 under the theme A People-Centred Approach: Investing in Communities, Transforming the Economy and Securing a Sustainable Future.
Here are 12 major takeaways from the budget:
- Social assistance grants to increase by $250 monthly
The Senior Citizens’ Grant, Public Assistance Grant and Disability Assistance Grant will each increase by TT$250 per month from January 1, 2027.
The increases are expected to cost an additional TT$555 million.
The Senior Citizens’ Grant has approximately 124,000 recipients, while the Public Assistance Grant supports 13,637 people.
The Disability Assistance Grant has approximately 28,000 recipients.
- Government projects a smaller fiscal deficit
The Government is projecting revenue of TT$59.729 billion and expenditure of TT$63.368 billion for fiscal 2027, resulting in a deficit of TT$3.639 billion, equivalent to 2.1 per cent of gross domestic product (GDP). This compares with a revised deficit estimate of TT$7 billion for fiscal 2026.
- Fuel subsidy continues to protect motorists
With fuel prices reaching new highs globally, the TT government said it will absorb the costs instead of passing it on to citizens.
According to the budget statement, the fuel subsidy cost $290 million during fiscal 2026.
Super gasoline remained at TT$5.97 per litre.
- Energy sector remains central to economic recovery plans
Natural gas production and new investment in the energy sector remain key elements of the Government’s economic strategy.
Several projects are targeting first gas in 2027, including Ginger, Mahogany A Extended, Juniper Phase II, Coconut and Aphrodite. The Manatee Plus project is targeting first gas in late 2027.
The Government is also evaluating proposals from potential investors for the proposed restart of the Guaracara refinery at Pointe-a-Pierre.
- VAT rules to change, with selected basic goods remaining VAT-free at the point of sale
The Government plans to move selected goods from zero-rated to VAT-exempt status from January 1, 2027, following a review of the country’s VAT system.
- Higher electricity bills proposed for high-usage households
A new electricity surcharge of five cents per kilowatt-hour is proposed for residential consumption exceeding 3,000 kilowatt-hours per billing period.
The measure is expected to generate an additional $17.8 million from January 1, 2027.
- Students to benefit from internships and expanded technical training
The budget includes new opportunities for young people to gain workplace experience and practical skills.
The Government proposes allocating TT$2 million to launch the Real Experience and Development for Youth Internship Programme, known as READY.
The programme is expected to provide approximately 1,300 secondary school students aged 16 and over with four-week internships during the July–August 2027 vacation period. Each participant will receive a stipend of TT$1,500.
Students will undertake placements in government ministries, the Tobago House of Assembly and participating private-sector organisations, alongside training in financial literacy, entrepreneurship and workplace preparation.
A further TT$16.3 million is allocated to begin expanding technical and vocational education in secondary schools. The initiative includes workshop improvements and equipment for 22 priority schools, with practical learning materials provided across 56 schools.
Training areas include agriculture, plumbing, electrical technology, welding, automotive systems and computer-aided design.
- Tourism targeted for a larger contribution to the economy
The Government wants tourism to increase its contribution to GDP from approximately six per cent to 12 per cent by 2030.
Six priority areas have been identified: entertainment and culture, eco-tourism, business tourism, health and medical tourism, sports tourism and yachting.
These priority areas will be supported by hotel developments such as a 100-room Hampton by Hilton at Piarco expected to be completed by March 2027 and a 109-room Hilton Garden Inn at South Park, San Fernando
- Farmers and agricultural entrepreneurs to receive additional support
The Government plans to introduce a Farm Business Formalisation Programme to help registered farmers strengthen their operations.
The initiative will provide support in areas such as land tenure, business registration, record-keeping, financial management and access to finance.
The Agricultural Internship Programme will also expand from 30 to 100 participants, giving more young people opportunities across the agricultural value chain.
- Housing plans include developments in Tobago
Housing construction and homeownership support remain among the Government’s stated priorities.
In Tobago, planned projects include 130 housing units at Riseland and 120 units at Adventure Phase III. The programme also includes 86 service lots across Adelphi, Blenheim and Castara.
The Government has also identified 350 housing grants ranging from TT$20,000 to TT$50,000.
The projects form part of the wider housing programme, although the budget statement does not establish that all the units will be completed during fiscal 2027.
- Healthcare, education and national security receive the largest allocations
The Government has identified several major spending priorities in its fiscal 2027 allocations.
Health receives TT$8.061 billion, followed by education and training at TT$8.033 billion and national security at TT$7.321 billion.
Other allocations include TT$4.087 billion for public utilities, TT$2.323 billion for rural development and local government, TT$2.081 billion for infrastructure and TT$1.712 billion for transport.
Agriculture receives TT$987 million, while housing is allocated $904 million.
- Tobago allocated $3.473 billion
Tobago is set to receive a combined TT$3.473 billion through the Tobago House of Assembly and spending by government ministries on projects and services benefiting the island.
The Tobago House of Assembly is allocated TT$2.756 billion, with a further TT$716.5 million to be spent by ministries.
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