The lawless and the reckless, the drinker and the smoker, the homeowner and driver have been targeted in this year’s Budget to contribute to Government’s $7.7 billion revenue deficit.

But Finance Minister Karen Nunez-Tesheira’s second budget also shared the energy dividends across the income spectrum and makes significant overtures, even in a time of declining revenues, to the low and middle-income prospective homeowners, to small local contractors, to small business people as well as to manufacturers and property developers.

In her presentation of the $44.3 billion budget which lasted three hours and ten minutes, Nunez-Tesheira announced heavy penalties for lawbreakers. Those who overtake on the left side of the road and those who speed on the road would face increased fines from $200 to $1,000 and those who use the Priority Bus Route with impunity, without a pass, as well as those who have illegal tints would have to pay $2,000, up from $200. All these measures will be implemented from January 1, 2010. (See Page 5.)

And in a measure which is certain to raise land and building taxes, Nunez-Tesheira announced that the ’antiquated, inefficient and inequitable’ property tax regime (in which the last assessments of property dated back to 1945) would be replaced by a new ’efficient, equitable and user-friendly property tax system’, in which the revised rates would be based on the annual rental value of a property.

In the case of residential, commercial and agricultural properties, the tax will be three per cent, five per cent and one per cent respectively, while industrial properties would attract a six per cent tax of the annual taxable value (which is based on six per cent of the installed cost of plant, machinery and associated buildings). For greater convenience these taxes however would be payable at banks, TTPost, T&TEC and WASA offices.

Government however continued to extend its generous benefits to HDC homeowners who would no longer have to pay legal fees attached to the purchase of any unit. And those prospective homeowners who have land and an annual household income between $24,000 and $50,000, would receive a Government subsidy of up to $50,000 to enable them to construct their first home where the construction cost does not exceed $195,000. For those with a household income of up to $75,000, a subsidy of up of $35,000 will be provided where the construction costs do not exceed $195,000.

Small contractors will enjoy a stimulus package in which Government would subcontract infrastructure works to them for building and refurbishing community centres, schools, police stations, health centres etc, providing a 30 per cent mobilisation fee (up from 10 per cent) to assist contractors in the initial purchase of materials and services.

Small business persons via NEDCO (National Entrepreneurship Development Company), will receive increased loan support. From October 1, first time applicants will receive up to $250,000 (from $100,000), second time applicants and third time applicants up to $350,000 and $500,000 (from $250,000).

The Minister announced tax concessions for ’retooling’ the manufacturing sector. She also said Government proposed to amend the Corporation Tax to allow approved property development companies to claim as a deduction 15 per cent of the capital expenditure incurred in the construction of commercial or industrial buildings which commenced on or after October 1, 2009 but are completed on or before December 31, 2014.

The Finance Minister continued the People’s National Movement tradition on sin taxes, imposing a 15 per cent increase in excise duty on locally manufactured and Common Market origin beer, rum and other alcoholic products and a 30 per cent increase in import duties on alcoholic products from extra regional sources. This measure takes effect from today.

The Budget is crafted in the context of projected real GDP growth of two per cent and a projected average inflation rate of seven per cent in 2009. The Budget is predicated on the ’very conservative’ oil price of US$55 and gas price of US$2.75 per million cubic feet. She said based on these assumptions total revenue was forecast at $36.6 billion. She added that on the expenditure side, Government intended to appropriate $36.9 billion from the Consolidated Fund while it estimates $9 billion in direct charges on the Consolidated Fund and expenditure under the Unemployment Levy Fund and Green Fund of $476 million. ’After adjusting for repayment of capital and contributions to the Sinking Fund the total budgeted expenditure for 2010 is $44.3 billion. For fiscal 2010 the projected deficit is $7.7 billion or 5.3 per cent of GDP,’ the Minister stated.

It was a more relaxed Nunez-Tesheira who presented the budget this time around. Apparently underlying much of her confidence and her budget statement was that the world recession would not last and also that the impact of the recession in this country was rather muted when compared to the region and the world. This was an outcome she attributed the Government’s prudent management and she patted Government heavily on the back for this.

The Opposition gave the Government its usual picong, saying things like ’again’ as Nunez-Tesheira announced many of the plans for this fiscal year. But the moment of the most thunderous table-thumping came when United National Congress MP Mickela Panday asked about gender policy and Prime Minister Patrick Manning rejoined: ’Madame this is a Budget’, much to the delight of his members.

The Budget however does not appear to support the current thinking in many quarters that Prime Minister Manning is preparing to call an early election. There were no conspicuous vote-catching measures. Rather the 2009/2010 Budget seemed to be the continuation of the tendencies of the last six PNM Budgets.

Opposition Leader Basdeo Panday will deliver his reply at 10 a.m. on Friday.