The A Partnership for National Unity (APNU) economic and finance spokesman, Carl Greenidge
The A Partnership for National Unity (APNU) economic and finance spokesman, Carl Greenidge on Tuesday called for a 20 per cent pay hike for public servants and a doubling of the current Old Age Pension as he kicked off the budget debate in the National Assembly.
Greenidge took three speaking extensions to fully convey the opposition’s aversion to the government’s proposed Gy$192.8 billion budget, and also warned that approval of it was not automatic.
He noted that the budget is “growth without employment”, expanding that development was being measured inaccurately, according to the government projections. He went on to say that the current administration is remaining on a course which will result negatively in economic development, as there is no critical advancement measures depicted in the 2012 budget.
Greenidge, a former finance minister, brought up the failures of the current administration to address the Financial Management and Accountability Act, noting that the act clearly states certain criteria must be met which were not being met such as the submission of six year projections and assumptions.
Greenidge also stated that the purpose of the budget reading was not to only highlight the positives, but to depict the regressions that have occurred. Greenidge also attacked government on its supervision of contracts, saying that value for money was poor in Guyana as a result of corruption. He said “apart from inflation, you take into account inefficiently and waste,” and these two issues are dominant due to a low threshold and a high VAT.
Greenidge said the VAT was a burden to all people, but especially the poor and the elderly. He stated that tax relief measures were necessary and feasible. “It is unfortunate the government cannot find a way to apply tax exemptions,” Greenidge stated.
He said that the income distribution within Guyana is growing and the division between the rich and the poor is larger more than ever before. Greenidge stated that the top 20 per cent allotted for 47 to 60 per cent of Guyana’s income, while the bottom 20 per cent accounted for less than seven per cent. The opposition noted that the government needed to “at least double the Old Age Pension,” and this was only possible if the elderly were also given special tax exemptions.
Job creation
Meanwhile, also speaking on Tuesday was Alliance For Change parliamentarian Moses Nagamootoo. He said that the budget was hailing growth in the economy, but this was not matched by jobs. “Growth must be linked to job creation,” Nagamootoo said, noting that industrial sites in places like Diamond and Ruimveldt have been left to degrade and this was largely as a result of the lack of a proper minimum wage. He noted that a better wage equates a better worker. Nagamootoo stated too that in 2011, “Gy$148 billion was taken from the people” by way of taxation. He noted that social development is the crux of growth, and alluded that the continued high rate of VAT impedes the amount of disposable income people have. Nagamootoo stated that while Guyana’s economy is trending upward, the country was still suffering from billions of dollars of foreign debt.
