FITUG supportive of Budget 2014

PRESIDENT of the Federation of Independent Trade Unions of Guyana (FITUG), Mr. Carvil Duncan has declared that the 2014 budget, like those in the past, places continued focus on the working-class, poor and elderly.

FITUG said it recognises that the 2014 budget comes on the heels of substantial reform arising from the 2013 among which included increasing the tax threshold by $10,000/month to $50,000 monthly; a reduction of the income tax rate from 33.3 % to 30%; the introduction of the mortgage interest relief; continued support to electricity customers within GPL, Linden and other communities; and support to the sugar sector, to name a few. When taken alongside the 5% increase in wages/salaries paid in 2013 as against a recorded 0.9% inflation rate for the same period, we are pleased that employees of the public service would have benefitted from a real wage increase and at the same time supported by various measures to reduce the cost of living.
“FITUG recognises that the challenge of balancing the demands of expanding Government services through investments in the social sectors and infrastructure as against budget measures to increase the level of disposable income, particularly for the working class. The FITUG is pleased to note the reduction of the external debt to 41.9% of GDP, stable exchange rate, low inflation rate, continued growth rate, robust foreign direct investment, and continued expansion of credit, all signaling a well-managed macro economy.”

“We wish to highlight, in our view, some important measures contained in Budget 2014”:-

1. Support to the Sugar Industry— an injection of $6 billion into the industry to assist the company meet its financing requirements of its transformation plans is a welcome at this critical time. The beneficiaries are 18,000 thousand workers and their families.

2. FITUG is extremely happy – that its proposals for an increase in electricity assistance
by 50% to old aged pensioners from $20,000 per annum to $30,000 per annum was positively considered. The assistance will certainly assist in reducing the electricity charges that will have to be met by each pensioner who is a GPL customer, and will have the effect of increasing the disposable income of our senior citizen population by over 300 million.

3. Budget 2014 cater for Old Age Pensioners – which was increased to $12,500 per month,

an increase of 25% in 2013 to be increased a further 5% percent to $13,125 per
month. The annual impact of this increase will bring the overall old age pension bill to
a total of $6.6 billion in 2014.

4. Support to the Guyana Power and Light Inc.—Budget 2014 provides capital transfers to GPL totalling $3.7 billion to support that company in meeting its capital requirements as its seeks to expand reliability and improve efficiency. The allocations to the electricity sector will benefit over 170,000 of GPL’s customers and their families and avoid tariff increases.

5. The support of Linden & Kwakwani Electricity — has taken budget 2014 allocates sums totalling $3.2 billion to meet the cost of maintaining the electricity subsidy in Linden and Kwakwani so that 10,500 electricity customers in Region 10 can continue to benefit from the very low tariffs that exist.

6. Coupled with the Education Grant—at a total cost of over $2 B, the $10,000 education grant for each child, will have a direct effect on bringing disposable income into the family. Coupled with existing school feeding programmes, uniform support, and investment in the education sector, the budget continues to focus on our youth and development of our upcoming workforce.

7. Training and Creation of a Hospitality institute at a cost of US$4 M.
Budget 2014 contains many references to training. In 2013, app 3500 persons being trained with computer proficiency under the OLPF programme, over 2300 persons trained under the NTYPE and BIT with plans to train over 3500 in 2014, to training of single parents, and the many other references to training. Additionally, FITUG welcomes the commencement of the US$4 M investment in the establishment of the hospitality institute that will improve the standard of personnel serving the travel and tourism industry.
“FITUG wishes to support the 2014 budget which comes on the heel of substantial benefits to the working class, poor, and elderly announced in the 2013 budget, to further expand and improve on these benefits.”

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