Trinidad warns of big cuts, revises budget amid drop in oil prices

Trinidad & Tobago's prime minister is warning of major cuts in expenditures following a sharp drop in oil prices that has forced the government of the wealthy twin-island nation to reduce its projected revenue this year.

Kamla Persad-Bissessar said in a televised address late Thursday that Trinidad had expected to earn $80 per barrel of oil but has revised that to $45 per barrel. The government already has reduced expenditures by $7 million, and more cuts are expected.

Trinidad is a major fuel supplier for the U.S. and other nations thanks to oil and natural gas reserves that make it one of the most prosperous countries in the Caribbean.

Persad-Bissessar said falling energy prices have led to a $1.18 billion deficit.