-PM tells National Assembly during budget debate
Rigorous debate yesterday resonated in the National Assembly, as parliamentarians commenced considering for approval the estimates of expenditure for the financial year 2010. On February 8, Minister of Finance, Dr. Ashni Singh presented the $142.8B National Budget.
Speaking in response to People’s National Congress Reform (PNCR) Member of Parliament Winston Murray , who led the opening argument, Prime Minister Samuel Hinds said that growth and development occur in stages. He said that once the necessary infrastructure is put in place, followed by training of human resource, development is inevitable.
He said that the Annual Budget provides the opportunity to review the progress that has been made over the past years, and to adjust, refine and r-organise new approaches that would facilitate continuity as the People’s Progressive Party/Civic (PPP/C) government seeks to further consolidate, transform and sustain, the theme under which the budgeted was presented.
He refuted both implicit and explicit criticisms echoed by Murray, by saying that the 162 paragraphs in which 2009 sectoral developments were summarised and the vast developmental agenda of 2010, are both comprehensive and replete with details.
“Although we find excitement in our budget, we value even more the excitement of our people as they move into new homes, as they attend new schools, as they benefit from new health facilities, as they travel along many miles of new roads, and as many Guyanese in difficult circumstances receive more assistance,” he said.
He also asserted that macro-economic stability and low inflation rate are more important for ordinary Guyanese citizens, since high inflation rate will only devalue their money.
He rebutted Murray’s argument that Guyana’s growth rate in 2009 was a mere 2.5 percent. He affirmed that this growth was achieved notwithstanding the severe economic recession that the entire world was battling. This, he said, was totally ignored by Murray.
The PM also highlighted the long overdue rebasing of Guyana’s economy as another kept promised by the administration.
“Our Gross Domestic Product (GDP) now rebased, has a more realistic figure that removes some anomalies that were present before, particularly for the area of energy,” he said.
He also blasted Murray’s remarks that the 2010 budget, like the other budgets, has no vision. He said that the PPP/C is open to debate as to whether the budget complements the goals of the 2006 manifesto, the President’s address at the opening of the Ninth Parliament, the National Development Strategy (NDS), and the Low Carbon Development Strategy (LCDS).
“A main element in our vision is that we would work traditional economic activities, bauxite, sugar, rice and timber to refashion, modernise and reposition them so that they can better face the challenges on an open international market, while at the same time promoting a number of new economic activities in which we may engage,” the PM said.
Recognising the sensitivities in dealing with bauxite and sugar, the PM said that Government, guided by its vision, varied the recommendation of the Work Bank in both cases.
“While we have resisted the call to privatise sugar, we also resisted the recommendation to have the bauxite industry closed; let us recall that bauxite has had the benefit of two World Bank interventions in 1983 and 1990 respectively, to try to make bauxite profitable; and when the second attempt failed, bauxite was to be closed, but we have not closed bauxite, we have subsidised it and kept it going,” he said.
The PM said that with maturity of the bauxite sector, coupled with the unavailability of local markets for bauxite and alumina, the direct foreign investments of RUSAL in the Berbice operations and BOSAI in Linden were welcomed.
Significant prospects were also made in the areas of electricity, infrastructure, telecommunication, and legislations.
The PM maintained that the 2010 budget, a product of thorough consultation, was presented with the average, practical Guyanese in mind and does not engage in arguments about one or other developmental theory. (GINA).