Budget close to $300B
Finance Minister Winston Jordan
Finance Minister Winston Jordan

…hike in pension, measures to spur ‘green’ economy likely
…minister to make projections for oil economy

BUDGET 2019 to be presented today is likely to be the biggest ever coming close to $300B and will include increases in Old Age Pension and Public Assistance along with measures to further drive Guyana’s Green State Development Strategy (GSDS).
The 2018 budget was set at $267B.

The Guyana Chronicle also understands that the multi-billion-dollar budget will take into account the emerging oil-and-gas sector as Guyana gears up for production in early 2020.
Today’s presentation will serve as the government’s forecast of its expenditures and revenues for 2019 and will be introduced in the National Assembly by Minister of Finance Winston Jordan.

It is themed ‘Transforming the Economy, Empowering People, Building Sustainable Communities for the Good Life’ and will come in contrast to the $267.1B 2018 Budget , a 7.1 per cent increase of the revised Budget 2017.

Jordan, in an interview with the Department of Public Information (DPI) last week, had announced: “Today, old age pension stands at $19,500 and will be increased again, in the upcoming budget.”

The expected increase comes against the backdrop of the Budget 2018 presentation where the government announced a 2.5 per cent increase in the pension figure, taking it to $19,500 effective January 1, 2018.

This represented a cumulative 48.6 per cent increase since 2015, which also saw the elderly benefiting from government’s exemption from paying for travel tax, a driver’s licence and passport fees.

Salary Increases
Meanwhile, public assistance was then increased in 2018 to $8000, an approximately 36 per cent increase in the last few years; the minimum wage by nearly 52 per cent in two years, from $39,570 in 2015 to $60,000, in 2017. Just last week, the finance minister approved tax-exempted salary increases for all public servants ranging from 0.5 to seven per cent for 2018, further stating: “All workers can expect salary increases, going forward, especially in 2018, 2019 and 2020.” These improvements all come about as Jordan relayed that the economic outlook for 2019 shows positive economic growth.

In a recent interview with the National Communications Network (NCN), he stated: “[In 2019] there are new industries that will come on stream and we expect better performance in a number of the traditional industries… and, of course, everybody is building something for oil. That is going on at a breathtaking pace as we move towards 2020.”

He added that there have been enquiries by a major hotel chain about coming to Guyana; a number of conferences which are now being held locally have created a demand for hotels, therefore boosting tourism in the process.

In the same line of thought, Prime Minister Moses Nagamootoo on Sunday hinted in his weekly column that Budget 2019 will be “bigger and better” and one which will give hope for new horizons of prosperity in Guyana.

Meanwhile, Vice-President and Minister of Indigenous Peoples’ Affairs, Sydney Allicock, said on Friday that “Budget 2019 will definitely give hope” as it includes considerations for indigenous peoples, youths and communities. He revealed that social cohesion is big on the agenda and this will see strategic measures being taken to address the social ills of the society.

President David Granger at his October 18, 2018 address to the National Assembly had also spoken about provisions in the budget for the oil-and- gas sector. He had stated that the Natural Resources Fund implementation plan is expected to be fully operational in 2019. “Your government will ensure that oil revenues are prudently managed for the present and future generations in accordance with our objective of securing the good life for all. We shall do this through a Natural Resources Fund, which will be established before first-oil in 2020,” he ascertained.

He also used the forum to liken the GSDS to the country’s “roadmap” for transition towards the ‘good’ life, assuring that it would not be excluded from today’s presentation. “Your government has chosen a “green” pathway to guide it towards achieving a ‘good life’. The economy, for too long, has been dependent on the production and export of primary commodities, all of which are vulnerable to exogenous market shocks and natural hazards,” he said, adding:

“Budget 2019, which will be tabled in the National Assembly next month, is expected to be based on the theme of transformation for sustainable development and “green” growth towards achieving the good life.”

The projections for Budget 2019 were arrived at by the government after wide consultations with the Private Sector Commission (PSC); union bodies and an array of various sector stakeholders.

The presentation of Minister Jordan today is expected to include reports on sectoral performances; the current and projected Gross Domestic Product (GDP) growth rate; debt management and more.

He is also predicted to touch on the areas of national security; tourism; international and domestic legal obligations; and emerging and transformative sectors such as manganese and business and investment.

Led by President Granger, the coalition government has made known its intention to create a platform for social and economic transformation for all Guyanese, by addressing key problems and creating tangible solutions.

In keeping with this mandate, the President has affirmed: “Guyanese could expect confidently, that by the end of 2019, they would be able to live in a state with more secure borders; communities that are safer; in an economy that is more resilient; in a society that is more cohesive; with public services that are more accessible and constitutional agencies and institutions which enjoy the confidence and respect of the public.”

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