MINISTER of Business Dominic Gaskin says that the National Budget that will be delivered today will provide the wherewithal to breathe new life into business and the economy.Mr Gaskin said the slowdown in business as reported by the Private Sector is due to the fact that a national budget has not been presented.
He told the Guyana Chronicle that he believes that investors were holding back because they wanted to know the outcome of the elections, the direction of the new Government, and what’s in the budget.
“The Government is one of the biggest spenders in our economy, a lot of projects are on hold, so I believe that once the budget is passed, there will be an injection of money into the economy, and I think the response from investors will be to proceed with some of the investments on hold for the last few months or so, so I think that we can look forward to better times ahead in the short-term, in the last quarter of the year and going forward into 2016, I think that we will definitely have some improvement,” the Minister said.
The Private Sector Commission in a statement earlier last week, among other things, touched on spending on Government projects and matters related to how the clearing of goods and the processing of investment agreements are affecting the business community.
According to business representatives, they have noticed a drop in consumer spending and expectations. Projects are being delayed/ suspended due to the cessation of payments on some projects while foreign and local business partners have put a hold on some investments, the Commission had noted.
Reliable data
Minister Gaskin said he takes the concerns raised by the private sector seriously, but lamented the unavailability of reliable data to give a thorough and objective picture of the situation.
“I have said in the past that I believe proper data is needed to support the anecdotal evidence that we have, it is difficult to intervene when you don’t have proper data that you are acting on. This is not meant to deny what businesses are reporting — an economic slowdown. But you need to have data that supports that. We have in the past not checked and published standard sets of data that will allow us to know whether we are in a recession, depression, or upswing,” he said, reiterating that this absence does not allow for a proper analysis of the situation.
Mr Gaskin said his job is to get a better understanding of what is happening before embarking on measures to address any problem.
Fresh start
Meanwhile, Finance Minister Winston Jordan has said the budget will be presented under the theme “A fresh start to the good life in a green economy”.
“Everybody aspires to a good life and … Government spending has to be done in relation to that good life,” a release from the Office of the Presidency quoted him as saying.
The new Administration, the Minister said, is employing a ‘fresh approach’ to the management of the country’s resources, with the aim of setting up the frame for how Government will be approaching the governance of the economy over the next five years.
This new approach includes a focus on better governance, social cohesion, building safer communities, linking the coastland with the hinterland, taking care of the environment, emphasising green technology, support for the implementation of environmentally-friendly processes for the extractive sector and the creation of a Sovereign Wealth Fund.
Minister Jordan said the Government’s aim is not only to ensure that “the good life” is achieved, but also that all Guyanese are able to enjoy it in a clean and safe environment.
The Budget will also address promises outlined in the APNU+AFC 100-day plan, which was disclosed in the run-up to the May 11 elections.  These include pension and salary increases.