Finance Minister Winston Dookeran said yesterday he is challenged with finding the money to fund a billion dollar deficit arising from the fuel subsidy as well as deficits in state companies.

Dookeran pointed to two pressing issues engaging his attention in addition to the ongoing heat from the labour movement.

Speaking at the post-Cabinet press conference at the Prime Minister's office, St Clair, Dookeran said arrears from since 2004 have developed on the fuel subsidy amounting to some $4.4 billion.

"As Minister of Finance I have been engaged in finding a permanent solution to that problem for future because it is a subsidy that supports the gas price in the country and we will find the appropriate solution but these are additional demands that must be met," said Dookeran.

He said his Ministry is searching on ways to finance these deficits and has started injecting some $400 million a month with respect to the fuel subsidy.

He said the rest will have to be borrowed.

"We are not contemplating any reduction in the fuel subsidy at this time, I am searching for mechanisms to finance it," said Dookeran.

He said there were also increasing deficits at WASA and for the first time at T&TEC which has an operating deficit of $500 million for this fiscal year.

"The demands placed on me as Minister of Finance are demands from many sources...including finding the funds to deal with the gas subsidy, finding the funds to deal with the deficits apart from the normal requirements," said Dookeran.