PNCR stages walkout as…
THE TRADITIONAL DEBATES seeking approval of the estimates and expenditures for Financial Year 2011 – in the sum of a whopping $161.4B — kicked off yesterday on a feisty note, with members of the main opposition People’s National Congress Reform (PNCR) staging a walk-out during Labour Minister, Mr. Manzoor Nadir’s presentation. According to the Party, which returned in full force after Nadir had finished making his presentation, the labour minister was disrespectful to the new Shadow Finance Minister, Ms. Volda Lawrence, who has replaced the late Winston Murray.
In their absence, Nadir proceeded to defend the 2011 budget, stressing that what the Government of Guyana is doing in essence is building the country’s economy, the benefits of which are equally felt by all Guyanese.
Noting that year after year, the opposition comes up with the same old tired criticisms; criticisms rather than critiques, Nadir said:
“What the four consecutive budgets have achieved is that we have defied predictions of doom and gloom, and built an economy… In terms of the economy, we are healthier now than we have ever been…Ms. Lawrence failed as she tried to discredit this government’s efforts, especially over the last four years.”

Elections Budget
Lawrence, on the other hand, dismissed the plan for the future as an “erroneous impression” without meaningful increases of clear measures to deal with many social issues affecting the Guyanese people.
She also put down the budget, calling it nothing but “election sweets” for the Guyanese people, and a political management tool.
Taking her up on this, as well as the perception abroad that this year’s budget is “an election-year budget,” Nadir said that to the contrary, tangible results of the current administration’s efforts are already being felt, particularly by the poor and vulnerable.
Again, Lawrence deemed the 2011 budget an “illusion” that does not address such issues as a much-needed reduction in the Value Added Tax (VAT), and increases in the income tax threshold that were realistic and could cope with the current cost-of-living situation here.
The indicators of a good budget, she said, improvement in quality of life; enhancement in the delivery of services; taxpayers getting value for money; transparency and accountability; increased employment opportunities; sufficient polices to stimulate investment and growth; and the proper management of the national debt.
The “unrestrained borrowing,” she argued, is cause for worry, and adds to the burden future generations will bear.

Debt Management
With reference to questions being raised about the management of the national debt, the Labour Minister said that unlike in the past, a veiled reference to the performance of the past administration, Guyanese are now seeing where the money racked up in debts has been spent.
In 1992 for instance, he said, the external debt was US$2.2B, and the Guyanese people could not see where that money had been spent. By contrast, the current external debt of the country is reflected in the schools that have been built; the roads that have been constructed; and the training of teachers and other professionals in different sectors.
At this, Lawrence shot back that the People’s Progressive Party/Civic (PPP/C) has racked up an external debt that is far more than the PNCR has ever incurred. According to her, the massive capital expenditure is questionable.
But Nadir rejected this line of argument, and called for the facts to be taken into context. In 1992, he said, the per capita rate was US$400 to the US$2.2B, whereas now it is US$1,500 to match a Gross Domestic Product (GDP) of $2,500. Again, in 1992, he said, it would have taken Guyana seven years to clear its debt, a task that can be dealt with in seven months, as the figures indicate.
He added that the international rate recommended for external debt as against a GDP is seven per cent. Guyana’s external debt is currently 3.5 per cent of its GDP.
Noting that the issue at stake here is not the amount of debt a country has, but the way that debt is managed; a task the current administration has addressed in a prudent manner, Nadir said: “We can manage, and do not borrow for borrowing sake.”
Lawrence was unmoved. She maintained that the projected debt increase is excessive and not sustainable. She even questioned the 4.6 per cent growth in the economy, in light of the fact that the main contributors to the economy are sugar (which is facing its own challenges), rice, gold and other services.
There are issues, she said, which need to be addressed, particularly in the sugar industry, where relations with the union and managerial problems were concerned, as well as the fact that government has a hand in the industry’s operations.
She is of the opinion that the projected increases in the sugar sector are unachievable, and that investments are needed to bolster employment opportunities, particularly in high-productivity jobs, and that employing such a strategy will ultimately lead to brighter prospects for the economy.
But Nadir sees things differently. “The debt we have is not out of control,” he said. Where the domestic debt is concerned, he made it clear that the current administration sought to ensure a controlled supply of money and control inflation, which, if increased, could impact significantly on the wages of the average Guyanese.
The inflation rate at the end of 2010 stood at 4.5 per cent, a level that has been in the single digits for the last three years.
In Minister Nadir’s opinion, employment is what the budget is all about, since the government is committed to improving the lives of all Guyanese people, and has put small but significant measures in place to stimulate the economy and, by extension, create employment opportunities.

Transparency and accountability
Lawrence was not buying this; to her, there is much to be desired in the area of transparency and accountability. According to her, institutional reforms have been put in place, alright, but there is still a lot lacking in the area of enforcement. The issue of corruption, she said, is one that has not only placed Guyana on the international radar, but also affects growth.
Noting that the problem at reference will not absolve itself, but should rather be addressed with a sense of urgency, she said a case in point is the recently launched ‘One Laptop per Family’ programme, the implementation of which leaves question marks hanging.
According to her, the current administration, in the spirit of transparency and accountability, should bring to the National Assembly a plan that deals with the project’s implementation, cost and criteria for distribution.
Nadir threw out these assumptions, and noted that in the last year alone, the National Assembly has seen an unprecedented tabling of audited reports for different companies, a total of 105 reports. By contrast, he said, in the years under the main opposition, reports were hardly tabled to give stakeholders access to information. “The government prides itself on accountability and transparency,” he said.
That said, he also pointed out that the 2011 budget focuses on initiatives to maintain the achieved level of progress to date, and introduce new technology to bolster development.
However, Lawrence called the Estimates of Expenditure a focus on maintenance; not modernisation. She said there is need for research to influence modernisation, a move to produce more value-added products, and exploration of new and more lucrative markets, among other measures.
She maintained that there are several areas of question in the 2011 budget, particularly the country’s absorptive capacity.
Nadir debunked this, and made it clear that Guyana’s future is bright, and the estimate of growth is backed by international organisations.
He noted that the International Monetary Fund (IMF) has predicted that Guyana’s economy has exhibited resilience and is expected to see steady robust growth.
“There is much that is commendable in the 2011 budget…our people are enjoying better quality of lives,” Nadir said.