PRIME MINISTER Kamla Persad-Bissessar says her government has inherited a $4.42 billion "hole" which needs to be filled in order to keep the country running. She pledged her government will find the money to do so.
Speaking at the first post-cabinet press briefing at the Red House on Thursday May 8, Persad-Bissessar said her government had been examining the country's true financial state after being elected on April 28 and ministers and parliamentary secretaries were sworn in on May 3.
She said the most important consideration was the country's month-to-month cash flow which gives an estimated update of the government's immediate status by month.
'In April 2025, total cash inflow was estimated at $3.95 billion, and total cash outflow was estimated at $5.28 billion. This left a cash deficit of $1.33 billion, which was met from the Central Bank's available overdraft cash balance. By the end of April, the available overdraft cash balance was $3.67 billion, of which $2.74 billion was carried forward to May 2025,' she revealed.
She said there was an outstanding balance of unpaid cheques in the system valued $500 million, which was also carried forward to May.
The PM said cash inflows for May from various sources of government revenue are estimated at $2.38 billion, with an estimated cash outflow of $6.3 billion, resulting in a cash deficit position of $3.92 billion.
'Worse, if all the unpaid cheques in the system were presented for payment, this would add a further $500 million to the deficit for the month - a total deficit then of $4.42 billion for which the Ministry of Finance will need to find funding.
'This is a delicate situation because it means the country was being run month to month, literally living on the overdraft at the Central Bank, which we will now have to max out to meet only part of the deficit in May.'
She said she was told the expected deficit for 2025 would be approximately $11 billion.
The PM outlined the measures by which government intends to fund the deficit.
"We will draw down the remaining $2.7 billion of the available overdraft at the Central Bank. We will refinance a minimum of 60 per cent of the Treasury Bills due in May, which will free up $647.7 million to address part of the deficit. While it is estimated that 60 per cent will be used, it is more practical to refinance the entirety of the $1.1 billion in Treasury Bills to leave some breathing space with the balance in the overdraft.
'We will utilise the HSF (Heritage and Stabilisation Fund) available balance of $1.76 billion to be drawn down for the rest of the fiscal year 2025 and additional borrowing of a minimum of $1 billion.'
Persad-Bissessar said the most recent tax collection data for fiscal 2025 up to March showed that from October 2024 to March 2025, total fiscal collections were $17.563 billion.
She said the permanent secretary in the Ministry of Finance had been asked to provide a revised projection of revenues in the short and medium term.
'Given the high levels of deficit and debt, this
