THE EDITOR: When I think about budget 2022 as presented by the Minister of Finance, reignite is the word that comes to mind. If the economic flame had been dimmed during the global pandemic and energy market crash of 2020, this was the opportunity to rekindle that flame and plant seeds for future growth, development and transformation. I think the minister has done just that by correctly determining where we are in our economic progress and prescribing the right policy tools to take us forward.
The focus on the energy sector was key. Despite the recognition that we need to diversify, the energy sector will be the engine room for growth and development for years to come. We have been severely challenged by low production and prices as well as our inability to extract maximum returns to the treasury from energy companies.
I agree with the minister's optimistic outlook as gas projects such as Matapal, Cassia and Barracuda will cause a major uptick in gas production and a focus on increased oil production by Heritage Petroleum Company Ltd and projects such as Ruby will add to our oil supply. If prices remain elevated, we should be able to capitalise, gaining higher revenue, foreign exchange and economic growth.
The intended additional exploration efforts were welcomed and paints an optimistic picture for our future.
Coming out of almost two years of lockdown and the resulting economic decline, there is an urgent need to not only get our economic wheels turning again but to transform our economy. The minister has started in the right place, with our institutions that will drive these changes. I am pleased to see the restructuring of entities such as the Revenue Authority, Statistical Institute, Home Mortgage Bank, HDC, exporTT and invesTT, among others.
Meaningful economic transformation cannot come without transforming the institutions driving this change.
Kickstarting the economy immediately with construction/opening of retail and service industries, agriculture, tourism, export-oriented industries and manufacturing is an excellent strategy. It will not only immediately impact economic growth but add much needed employment as the country cautiously reopens.
The Government is setting the pace with 'shovel-ready' projects and with fiscal incentives in place; the private sector should follow.
In the long term, economic transformation through digitisation and innovation is critical and the minister has placed emphasis on that. Creative and entrepreneurial citizens must grasp these opportunities and drive development in this direction. Export-oriented growth is also key and the reform of our export-oriented institutions along with incentives and opportunities to access new markets for our products will be important to our success.
Fostering homegrown industries is also an essential element. The budget focuses on industrial parks and economic zones such as Phoenix Park, where foreign and local investment can fuel growth and employment. Agri
