Business View Caribbean - Sept. / Oct. 2014

62 %XVLQHVV 9LHZ ‡ &DULEEHDQ ² 6HSWHPEHU ‡ 2FWREHU 7ULQLGDG 7REDJR borrowing limits under the Treasury Bills and Notes Acts. The Central Bank intensified its open market operations in April 2014 in an effort to contain liquidity in the domestic economy by removing $1.2 billion from the banking system through the issue of a $1.0 billion treasury bond in June 2013. Between October 2013 and April 2014, the bank rolled over three commercial banks’ fixed deposits (to the value of $5 billion) held by the Central Bank which matured during the period. Also, approximately $4.8 billion was indirectly removed from the system via the sale of US$750 million in the same seven-month period. The weighted average buying rate of the Trinidad and Tobago dollar appreciated slightly to TT$6.3654 per US$ at the end of June 2014 from TT$6.3878 per US$1 in the corresponding period ending June 2013. Similarly, the weighted average selling rate appreciated to TT$6.4110 per US$1 from TT$6.4215 per US$1 over the same period. The overall deficit on Central Government Operations for fiscal 2014 is projected at $4,876.6 million or 2.7 percent of GDP, compared to an overall deficit of 3.0 percent of GDP for fiscal 2013. Total Revenue and Grants is estimated at $59,911.7 million or 33.5 percent of GDP, of which Tax Revenue is expected to be the major component, contributing $47,705.3 million. Capital Revenue is estimated to more than double over the receipts of fiscal 2013. Total Expenditure and Net Lending is estimated at $64,788.3 million or 36.2 percent of GDP, approximately the same proportion of GDP as fiscal 2013. The Overall Balance of the Rest of the Non-Financial Public Sector recorded a deficit of $3,293.3 million for the first half of fiscal 2014 as compared to a surplus of $65.4 million for the same period of fiscal 2013. The operational deficits on the State Enterprises and Public Utilities accounts reflected the performance for the period. Net Public Sector Debt is projected to increase by 10.7 percent from $70,929.5 million in fiscal 2013 to $78,494.7 million by the end of the current fiscal year. Net Public Sector Debt as a percentage of GDP is expected to increase by 3.3 percent from 40.4 percent in fiscal 2013 to 43.4 percent in fiscal 2014. The Net Asset Value of the Heritage and Stabilisation Fund increased to US$ 5,563.3 million, at the end of the third quarter in fiscal 2014. The positive performance of the fund is due solely to gains from the investment portfolio of the Fund as no deposits were recorded for the period. The Balance of Payments is projected to record a surplus of US$786.3 million in 2013, a vast improvement from the deficit of US$622.0 million for 2012. This surplus reflects the positive expansion in the 7ULQLGDG 7REDJR 6HSWHPEHU ‡ 2FWREHU ² &DULEEHDQ ‡ %XVLQHVV 9LHZ external current account balance which improved by 173.7 percent due mainly to an improvement in the services account. The improvement in the deficit on the capital account recorded in 2012 was reversed as the deficit expanded by 14.3 percent to US$1,785.2 million. The balance of visible trade declined by 33.0 percent over the period April 2013 to May 2014, as compared to the previous comparative period as exports declined and imports marginally expanded. However, the balance of trade excluding mineral fuels declined by 11.2 percent to TT$3,203.4 million for the period. Trinidad and Tobago’s gross official reserves expanded by 11.0 percent to US$10,219.8 million at the end of July 2014, representing 12.0 months of prospective imports of goods and non-factor services.