President optimistic budget 2013 will be accepted

Finance Minister Dr Ashni Singh

It is not too late for budget consultations although there is only one month left before it is presented for scrutiny at the level of Parliament. This was the sentiment of President Donald Ramotar when questioned by the media last Friday about the purpose of a consultation now.
While the President said he agrees that preparatory works have to be started long before the budget is presented to the National Assembly, there is still time for the opposition to make its input. According to him, there is still some work to be completed, especially from the financial analysis standpoint.
The President further stated that instructions were given to Finance Minister Dr Ashni Singh to have an extensive consultation on the budget, including all of the opposition parties.
The minister, he said, has started that process and met with other interest groups. The Head of State said he was hopeful that based on this move, to engage all stakeholders in this process, the budget will be accepted by all parties and Parliamentarians, as its approval is heavily dependent on the support of members.

Tax reforms
In updating the media on the progress of tax reform, the President said that this process was delayed when a member of the committee fell ill last year.
“My view at one time was to have some acceleration as far as the Value Added Tax (VAT) was concerned, because that seemed to be the most contentious issue everybody was talking about.”
The President said he still wants to see that more work be done on completing the tax reform plan. The committee responsible for tax reform has advised the President to carry out a broader study, to ensure that the plan meets certain standards. Ramotar said he hopes that the study can be done as early as possible, so that it can be scrutinised properly before it is introduced.
Several bodies have been calling for an urgent review of the tax system to suit the needs of a growing economy. The President has promised to ensure that this is done, with special emphasis to be placed on the VAT.
The Federation of Independent Trade Unions of Guyana (FITUG) has been one of the many organisations calling for the government to create a new tax system.