BUDGET STATEMENT 2014
14
SUSTAINING GROWTH, SECURING PROSPERITY
transformation; in fact, small and medium-sized
enterprises constitute over 85 percent of all
registered businesses in Trinidad and Tobago
and we are very mindful that during the recent
economic difficulties they acted as shock
absorbers and assisted in the maintenance of
employment levels.
Public economic policy has been focussing
on the funding requirements of this group of
enterprises with the creation of tax incentives in
2012 for a small and medium-sized market on
the Trinidad and Tobago Stock Exchange; but
the absence of listings since then has reflected
the restrictive factors associated with the
tax incentive framework. I propose to amend
this framework by redefining the qualifying
capital base for these incentives as well as the
shareholding requirement.
Mr. Speaker, while access to the Trinidad and
Tobago Stock Exchange allow these small
and medium-sized businesses to connect
with investors who wished to participate in
the equity of such companies, we are also
ensuring that small and micro-businesses are
able to participate in the national economy in
a consistent and sustainable manner. In the
coming year, the Ministry of Labour and Small
and Micro Enterprise Development will review
the Fair Share programme and will hold its
first Fair Share Expo to increase the visibility of
certified SMEs. The Ministry will also implement
a number of initiatives, including a web portal, to
add further impetus to this programme.
Mr. Speaker, we will continue our dialogue with
the Trade Union Sector as we forge a consensual
framework that meets the developmental needs
of the country and the requirements of the Trade
Union Movement.
6. MEDIUM-TERMFINANCIALFRAMEWORK
Mr. Speaker, I turn now to our medium-term
framework. This Administration is committed
to achieving the medium-term objective
of a balanced budget by 2016. This Budget
begins the movement toward that objective
with a projected reduction of the deficit from
4.6 percent of GDP in 2013 to 3.6 percent in the
next fiscal year.
We envisage, with the completion of most of
the maintenance work in the energy sector
and our continuing stimulus programme, that
the emerging growth would be consolidated
and strengthened. Annual minimum output
levels of 2.5 percent over the medium-term are
being projected. This continuing expansion of
the economy coupled with current initiatives to
strengthen the collection efforts of the Board of
Inland Revenue will result in increased revenues.
However, the full achievement of this fiscal
objective will require a programme for
streamlining expenditure. The Ministry of Public
Administration is managing a programme to
eliminate the waste, inefficiency and duplication
which exist in our social services programmes.
This must be accelerated. We propose to
engage civil society in the conceptualisation
and implementation of programmes to achieve
this objective.
SMALL AND MEDIUM-SIZED
ENTERPRISES (SMES) AND
LABOUR
Mr. Speaker, small and medium-sized
enterprises have been playing an important
role in generating output and employment
and in the process supporting our economic
