PORT-OF-SPAIN, Trinidad (CMC):

Prime Minister Patrick Manning says the global economic downturn is having a much greater effect on the Trinidad and Tobago (T&T) economy than had been anticipated, with the Government now projecting an overall budget deficit of TT$1.7 billion (US$0.27 billion) for this year.

In a statement to Parliament here on Wednesday, Manning said the oil-rich twin-island republic was now expected to realise revenues of TT$42.2 billion (US$6.7 billion), based on "con-servative assumptions" of an oil price of US$45 per barrel and a gas price of US$3.25 per MMBTU (the current measure used).

The new revenue projection is some TT$7.2 billion (US$1.14 billion) less than the original budget figure.