Again, on Monday, Opposition members of parliament and those on the government benches differed on the measures contained in this year’s Gy$161.4 billion budget presented in the National Assembly by Finance Minister Dr Ashni Singh.
Speaking to the media just after Singh’s presentation, Opposition Leader and leader of the main opposition party, Robert Corbin, noted that he was not surprised by the announcements made by government on Monday.
He fretted about being subjected to a three-hour budget presentation that could have been presented in approximately one hour. “What I know is what any objective economist will know: that Guyana does not have the absorptive capacity to spend all that money that they will be spending this year. Unless it is going to be used as we said before, as part of the political slush fund for the purposes of persuading people to vote,” Corbin said.
He did admit that he was not yet privy to the nitty-gritty details of the budget; but, as soon as the documents are made accessible to him and he scrutinises them, he would comment further. When asked to address the increase in the tax threshold, he said again that he is not surprised, as his party and by far the entire opposition has been calling on the government to raise the threshold. “We have been calling for tax reform for years. We brought a motion on tax reform, but now it comes in an election year,” Corbin told the media.
Donald Ramotar
Additionally, Corbin noted that the non-reduction in the Value Added Tax also did not come as a surprise, as, “they (government) have recognised the need to reduce corporation tax as well as company tax from 45 to 40 (per cent) and from 35 to 30 (per cent) so that these companies would get a relief. But the consumers they claim to represent will still have to pay 16 per cent VAT….One would have thought that there was a need for 12 per cent increase for pensioners…and workers of Guyana would have gotten 15 per cent to 20 per cent increase in their salaries…”
Meanwhile, Raphael Trotman of the Alliance For Change told the media that his party was not expecting anything different, as it is an election year. “This budget was geared to be one of fluff, one of pageantry, to prepare the nation for national elections and to give the incumbent party more than a footstool to campaign in an uneven playing field…we are disappointed…,” Trotman told media operatives.
He added that there are still many unanswered questions as it relates to government’s spending, and he pointed to the security sector where there has been a rise in criminal activities over the past few years despite billions being spent. With regards to the health sector, he pointed to the fact that maternal deaths are now numerous, but that sector has been given tremendous sums to boost its delivery of service. “Those of us in the opposition, we have our work cut out; but we are confident that we can do it,” Trotman said.
However, PPP General Secretary Donald Ramotar, in an invited comment, stated that this year’s budget reflects “the distance we have travelled in a short period of time, 1992 to now, how we have transformed the country. This budget reflects growth.”
He noted that, for every legitimate class in society, there is something in the budget that speaks to them. “I think it is a very strong budget standing on social issues, and I believe it is going to further [lay] the foundation for rapid development in our society.” When asked about the comments made by opposition members of parliament, Ramotar said it is not surprising that the opposition would term the budget an election budget. But he maintained that the budget speaks to all Guyanese.
“I don’t think we need a special budget for election year. What the PPP/Civic government has been doing is not necessary to ‘poke barrel’. We can win the elections without that. We have actually delivered. If you look at our manifesto from 2006 to now, in almost every area we have lived up to our promise…,” he asserted.
Presidential Advisor on Governance, Gail Teixeira, mirroring Ramotar’s sentiments, noted that the budget “is an indication of government’s policies over the last 18 years – pro-growth, pro-poor policies in terms of ensuring expansion of the economy and the diversification of it, as well as the human side,” she said.
She stressed that all of the opposition’s criticisms over the years are now spurious, as the government has been able to show with economic expansion that the youth of the country can now look forward to more from a government which provides many opportunities and much hope for the future. Strongly opposing the opposition’s statements, Teixeira noted that this budget is not an election budget, “It is a continuation of what we started a few years ago. A really exciting future is ahead,” she stated.
Home Affairs Minister Clement Rohee told Guyana Times International that he was satisfied with the allocations made to the sector he heads, as there is much to be done to improve security across the country. He noted that the Home Affairs Ministry has already prioritised the spending of the money, and is looking forward to more development.
Health Minister Dr Leslie Ramsammy told this publication that the health sector is satisfied that the government of Guyana has continued to allocate increased financial support to the health sector.
“With the allocation, the per capita health expenditure is now about US$95 million,” he said. This, coupled with money acquired from the global fund, puts the funds for the health sector at just over US$100 million.
“This is a tremendous increase from U.S$6 million in 1991…I believe that the 2011 budget has benefits for everyone. The social sector budget ensures that all citizens, particularly the working class, benefits…Businesses benefit, and their tax savings will lead to more investment and more jobs,” Minister Ramsammy stated emphatically.
