– Debates starting next week expected to clear the air
THE 2011 Budget was, yesterday, presented in the National Assembly – the largest under the administration of the People’s Progressive Party/Civic (PPP/C) – totalling some $161.4B, but as expected, there is much disagreement as to what the budget represents.
However, stakeholders agree that the air will be cleared once the debates, scheduled to begin next Monday, are completed.
Prime Minster Samuel Hinds told the Guyana Chronicle that the 2011 budget is one of continuity.
“We are moving from stage to stage. Essentially, we are doing the same things; improving infrastructure, improving health, improving education. We are focusing on training and then there is the upward movement in the income tax threshold and the reduction in the Corporation, among other taxes…we are doing more with the vision we started with,” he said.
The Prime Minister explained that the 2011 budget is not an ‘election year budget’, noting that the provisions made in the budget have been made because Guyana is at a place where such provisions can be made, for example, the increase in the income tax threshold.
Hinds stressed that this is the best arrangement for Guyana at this time.
“It is an overall good choice of things to do to keep us growing and also to keep as much equity as we could in the country,” the Prime Minister posited.
Meanwhile, Leader of the People’s National Congress Reform (PNCR), Mr. Robert Corbin, asserts that Guyana does not have the “absorptive capacity” for the spending estimated in the budget.
He said, “Any objective economist would know that Guyana does not have the absorptive capacity to spend all that money that they allege they will spend this year, unless it is going to be used as part of the political fund to persuade people to vote.”
His initial reaction was that the Budget is unreliable and described it as a “political” tool, which will be paraded to the electorate.
“This document is unreliable,” Corbin said.
He added that the provisions made in the 2011 budget are moves that the Opposition have been calling for, for some time now.
“It is very ironic that these provisions come in an election year…we have been calling for tax reform for years; now it comes in an election year…when we analyse what has been presented, we will see,” Corbin said.
Alliance For Change (AFC) Member of Parliament, Mr. Raphael Trotman, stressed that the 2011 Budget does not provide for the average man, women and child.
“It is election year and despite what has been said, the budget is obviously geared to be one of fluff and pageantry to gear the nation for elections…we are disappointed that issues of workers have been tossed aside,” he commented.
The AFC Member of Parliament explained that while the current administrations are advancing good initiatives, such as the one laptop per family, such things must come after families are able to enjoy the basic amenities of life.
According to him, major concerns of the AFC are: The millions being spent on security and the increasing crime rate; and the boasts in the health sector and the shortcomings; among other things.
He added that the Budget Presentation is a tool, which gives the current administration an unfair advantage in this year’s upcoming elections.
“Those of us in the opposition have our work cut out, but we are confident,” Trotman said.
However, Adviser to President Bharrat Jagdeo and PPP/C Member of Parliament, Ms. Gail Teixeira, in an invited comment, debunked these statements and made it clear that the 2011 Budget is focused in a “pro-growth” and “pro-poor” policy.
“The 2011 budget is a vindication of the government’s polices over the last years…in terms of having expansion of the economy, as well as having the human side to address the need of the poor and vulnerable in society,” she commented.
Teixeira stressed that the current administration has shown all Guyanese economic expansion and made possible greater opportunities, which are opening up for the future.
According to her, stability of the economy and in the society, coupled with developments, are reflected in the budget.
“Obviously, it is a pro-poor budget because it continues all the interventions to maintain the social safety nets, the pensions, public assistance, the areas to deal with WoW (Women of Worth), housing, water, education…we can go on and on…this is a pro-working class budget,” Teixeira said.
She noted that hundreds of thousands of lives have been improved with the many interventions made by the current administration.
The Adviser to the President said: “It is a budget that offers something to all the sectors…we can expand in several areas and bring reductions for the people who need it…these are things we could not have done a decade ago…Guyana is doing much better.”
She also responded to assertions made by the Opposition of the budget being an ‘election year’ affair and made it clear that the provisions made in the 2011 budget is a continuation of the programmes started by the current administration.
“It is a very good budget. I think it is a budget of optimism and hope for the future…it is also a good record of the performance of the government,” she said.
In an initial reaction yesterday, presidential aspirant, Mr. Peter Ramsaroop, told the Chronicle that the budgetary expenditures are not being seen.
He said, “Again in the budget this year we see the number of roads being done (but) where are these roads? We see more craters…it is the largest budget ever, but we need to regroup and the government needs to start focusing on the people’s needs and wants.”
Ramsaroop maintained that the 2011 Budget is not what the people want.
On the other hand, General-Secretary of the People’s Progressive Party (PPP), Mr. Donald Ramotar, made it clear that the 2011 budget reflects the “distance” travelled from 1992 to date and the transformation that Guyana has seen since then.
“For every legitimate class and sector in society, there is something where they can benefit; for labour, for business, for the poor, for pensioners….it is a strong budget that addresses a number of social issues,” he said.
The PPP General-Secretary acknowledged that the Opposition’s claim that the budget is an ‘election year budget’ was expected, but pointed out that the current administration has no need for a special ‘election year budget’.
“What the PPP/C Government has been doing says something in itself…we can win the elections without it…if you look at the manifesto one would see that we lived up to our promises…we have done enough to not need a special budget for election,” Ramotar declared.
The PPP General-Secretary and Presidential aspirant maintained that the development to date and a 2011 budget geared to continue along that trajectory gives Guyana a firm foundation to continue the advancement of progress.