NINE years of consecutive economic growth is a good gauge that Guyana’s economy has done very well under testing circumstances, says Finance Minister, Dr. Ashni Singh.And this growth is a good measure for citizens to be inspired towards the return of the incumbent People’s Progressive Party/Civic (PPP/C) Government, he assured the nation Monday evening on the programme, “Making the Point”, aired on the National Communications Network (NCN).

Dr. Singh reminded his audience that the global economy was in tremendous turbulence and difficulties, and that Caribbean economies went through significant trauma, but “we have had uninterrupted positive growth in Guyana for the past nine years, at a time when, particularly over the last three years, the domestic political environment was a very challenging one.”
As such, he applauded all those stakeholders who helped contribute to this ‘buoyancy’ of Guyana’s economy, amidst near-disastrous global plummeting.
Elaborating further, in light of Guyana’s troubling political climate, Minister Singh said: “The political environment does certainly have the potential to affect the economy; we (the PPP/C) are operating in an environment where the Opposition has not been shy of disclosing its intentions to derail or attempt to subdue growth in the economy.”
But in spite of the foregoing challenges, he said, the Government “is committed to ensuring that we maintain the conditions that are essential for continuing growth, preserving stability, creating jobs, generating income … We have demonstrated that over the years; and there are numerous indications that confirm our commitment and demonstrate that our track record, in this regard will continue to be sustained.”
Minister Singh detailed that the PPP/C will remain focused on stability and growth in the economy, as “…we will continue to focus on preserving policy environment, that will remain attractive to investors, both foreign and domestic, and which will result in the creation of jobs and generating of income for Guyanese people, all across the country and that remains our commitment.”
Oil prices recently dipped and some immediate, if only temporary benefits, have trickled down to Guyanese. The minister announced a reduction in the price charged for fuel by Guyoil, specifically gasoline and diesel; these will be sold for 30 percent less than what they were currently being sold. As for the price of kerosene, he stated that it will be reduced by 42 percent.
He added that, the reduction will have a number of immediate impacts on the disposable income for those who purchase these products and for those in the business, mining, and manufacturing sectors.
The Finance Minister commented on the positive repercussions, especially for Berbice, as it is deemed the ‘food basket’ of Guyana, and there it is a heavily based agricultural economy with plenty of machines and pumps, that use fuel, so “… immediately (the agriculture sector) will benefit hugely from the reduced prices.”
The spin-off effect he added is that they can make use of the (saved) cash to generate other returns of profits.

LARGER PICTURE
Dr. Singh detailed that the Government has been doing a number of things over the years. He said that “there is really a larger gamut of initiatives … that we are making sure that the environment is favourable.”
He explained that the Government has in place, a mechanism, to cushion the input of market price volatility, over a particular period. It was noted that the market price had risen by 184 percent, but the price of the domestic pump had risen by just 77 percent, because the tax was adjusted downwards.
In addition to that, he pointed out that “…one does not see the ‘changes of price’ of the pump immediately, and one does not adjust the price every day … respond to the volatility every day, and so we made sure we adjust the tax to keep the price at a level that will be affordable for the Guyanese consumers.”

GOVERNMENT’S BUSINESS
The Finance Minister made sure that Guyanese remain aware of reality. He showed that when the Government adjusts prices, and when conditions are very congenial, they affect the revenue impact, as “… the Government still has to discharge its revenue collecting as well, because it is the revenues collected that finance the building of the roads, digging drains, maintaining the drainage and irrigation structures, sea and river defence structures, and up-keeping hospitals and schools.
He stated that every initiative that undermines Government’s collection of revenue has the negative impact on building another road or school or hospital, and intoned that “(He) would like to fix every road, but in order to do that (he has) to ensure that the economy is growing and (that he is) collecting taxes and making sure that they are used to implement these projects.”

AN EXAMPLE
“I am deeply moved when I go to a housing area … I went to Parfait Harmonie a few months ago, and was extremely moved to see ordinary Guyanese families building beautiful homes and these are not people with fancy jobs and earning huge incomes … these are average Guyanese citizens, having ordinary jobs and earning ordinary incomes, but saving, building their own homes … in some instances, setting up a small business to supplement their income and it is very moving to see how many Guyanese are owing their own homes, using their disposable income and their savings, and accumulating these overtime,’ he said.

TRANSPORTATION
Dr. Singh, in the light of lowering fuel prices made a call that as a result of paying $300 less for gas, that the public transportation sector’s response will be an immediate and concomitant lowering of fares. He recalled debates as to whether or not it (fares) should be the subject of regulation “but thus far we have relied on market forces and moral suasion … even if we are to go to regulating transportation fares, that cannot be done overnight … it has to follow a process … so in the meantime, we will try to persuade the bus operators to pass on the reduction of gas to their passengers.”

UTILITY BILLS: NECESSITY OF AMAILA
Minister Singh looked at the more salubrious and permanent promise for Guyanese, as he reiterated that “…the surest bet for that (cheaper utility bills) will be achieved if Guyana were to harness hydroelectricity (as) right now, Guyana Power and Light (GPL) is dependent on the national treasury for subsidy to finance its operations and it gets about $9 billion per year in subsidy … to help to be able to deliver power, at the prices that are currently being charged.”
He explained that Government is not satisfied with the current state as it would like to see a more reliable service, fewer blackouts and more affordable electricity to businesses and households. He explained that for these to be achieved, “Guyana has to move to renewable energy and the only project that is at a point to be realised is the Amaila Falls Hydro.”

BUDGET ISSUES
Guyana is heading towards the polls and the minister explained some intricacies as regards Budgets-2014 and 2015. He expounded that the Budget 2014, strictly speaking is for that specific year and “… so the appropriations associated with Budget 2014 would technically have expired at the end of 2014. What the constitution does is to allow for the tabling of a new budget in March of 2015.” Therefore there is no contravening of any of Guyana’s final laws.
He said that the constitution is quite clear about this and that it allows the Government to continue the operations of the country until the new budget is tabled. “We are working with this constitutional requirement in mind and I would be ready to table one (Budget 2015) in Parliament within this deadline, once the parliamentary conditions are in place.”
Minister Singh elaborated that “Guyana’s constitution is quite clear about what happens in this regard (here in Guyana) when any Parliament is dissolved … so whether or not a budget is presented in March is dependent of what happens to the 10th Parliament … if the 10th Parliament resumes, a budget will be presented by the end of March; (however) if on the other hand, Parliament does not resume and is dissolved by the end of March, then the relevant constitution will kick in for that.”
In other words, the message from the minister is that “Government is allowed to operate until such time that a budget is presented …so in the normal scheme of things, a budget is required to be tabled by the end of March, in the interim, the law is clear that the Government can continue to fund its operations.” It should be noted too that the current prorogation comes to its potential end on May 10, 2015. (GINA)