By Imran Khan
Director of Public Information

TODAY marks almost a month to the date when Minister of Finance Winston Jordan delivered in the National Assembly the 2016 budget presentation on January 29th, 2016. Today is also the day on which the consequential bills from budget 2016 will be brought before the House for consideration and passage. It presents a useful opportunity for reflection on the budget itself and the subsequent debate and consideration of estimates before it was eventually approved in the early hours of the morning of Tuesday, February 23rd, Guyana’s republic anniversary.

Budget 2016 was the second budget presentation Minister Jordan had made in five months and his first 12-month budget, subsequent to the presentation of an abridged four-month budget on August 10th, 2015 – three months after the APNU+AFC Coalition assumed government.

The theme of budget 2016 is “Stimulating growth, Restoring Confidence: The Good Life Beckons.” This followed the 2015 theme of “A Fresh Approach to the Good Life in a Green Economy”. Budget 2015 came in at $221B, while Budget 2016 topped that by $9B at $230B.

Minister Jordan outlined that Budget 2016 was being presented on five pillars: (i) National Unity, (ii) National Infrastructure, (iii) National Institutions, (iv) National Security and (v) Public Services.
During the technocrat minister’s 75-page presentation, he purposefully articulated the government’s vision for progress over the course of the calendar year, with a heavy emphasis on setting up the foundation for Guyana as a model green economy.

The budget is loaded with measures and policies to cultivate a national sense of respect for and deference to our environment, a central facet of Guyanese life which, while receiving much lip service, had been stridently neglected for a considerable amount of time, as was evident by the manner in which our beloved capital city, Georgetown, had been left to decay from its place of prestige as the Garden City of the Caribbean. (Notably Budget 2016 has dedicated G$200M for the self-explanatory Georgetown Restoration Programme, in addition to the G$5B for the reconstruction of Sheriff Street, which will have improved traffic-safety features, inclusive of overhead pedestrian crossings).

FOUNDATIONAL BUDGET
“This budget,” said Minister Jordan, “builds on the policies and programmes which were first outlined in the Manifesto of the APNU+AFC Coalition and, subsequently, extensively elaborated in my maiden budget speech.”

It is therefore apparent that Budget 2016 was a continuation of an overall national vision. Being the first 12-month budget of the Coalition government it is, as well, a foundational budget – one which establishes the underpinnings of and sets out the parameters for national renewal and transformation during the term of this government. Such an establishing budget, coincides fittingly in this, the year of our Golden Jubilee, dubbed the ‘Year of Renaissance’ by His Excellency President David Granger. (Given the magnitude of the celebrations, Budget 2016 includes an allocation of an appropriate amount of G$300M for the Golden Jubilee celebrations).

To quote Minister Jordan, “In my 2015 budget presentation, I noted that the “good life” could only be achieved on the foundation of macroeconomic stability.”

TALKING POINTS
While it is not possible, in as condensed a review as this, to present all the items which stimulated public discussion, there were some noteworthy talking points:

1. Increase in minimum wage from $50,000 per month to $55,000
2. Reduction in fuel prices (Gas: $190 to $170, Diesel: $161 to $159, Kero: $120 to $90)
3. Increase in Old Age pension (from $17,000 to $18,200) and Public Assistance (from $6,500 to $7,300)
4. G$9B for GUYSUCO
5. An allocation of G$3.2B for the previously beleaguered University of Guyana
6. G$424M for the school uniform programme and G$1.9B for National School Feeding Programme
7. Increase of GPL rebate from 10% to 15%
8. G$14.4B to upgrade, expand and rehabilitate roads and bridges nationwide
9. G$20.3B allocation to the agricultural sector
10. An anticipated G$11B in new investments through GO-Invest

TWO MAJOR OVERLOOKED INITIATIVES
In addition, there are two major initiatives which have been mostly overlooked.

The first is the G$1.6B plan to develop six state-of-the-art waterfront facilities over the next five years – three in Georgetown (Kitty, Kingston and Stabroek), Supenaam in Region Two, Vreed-en-Hoop in Region Three and Skeldon in Region Six.

While this investment will create modernised ramps for ferries and water taxis, it will also provide green recreational spaces and boardwalks and tourist attractions, thereby enhancing both the quality of life of our citizens and boosting Guyana’s tourism product. These six modern waterfront facilities will create spin-off economic opportunities for small businesses.

The second being the development of 4000 acres of state lands in Region Nine for the construction of an agriculture station. The lands will be used mainly for cattle, sheep and goat-rearing, aquaculture and rice and vegetable-farming. This latter plan is part of a G$598M allocation to enhance agriculture in the fecund hinterland, riverine communities and the vast Intermediate and Rupununi Savannahs. Given agriculture’s pride of place in our economy, this latter initiative is worthy of note as it promises to transform and expand Guyana’s agriculture sector, through structured intervention, in a direction not previously pursued.

ATTEMPTED SPOILER
The Opposition, pre-emptively had raised the issue of increase in public servants’ salaries. The Opposition Leader had touted “a huge salary increase” on January 27th, two days before the budget was presented and subsequently floated a 50% figure. This was bizarre, given that under the previous administration no such increase for public servants had been forthcoming at any time. This was coupled with the adamant refusal by the previous government to negotiate with the trade unions, an approach which led to a hostile relationship between the two.

One wondered whether the Opposition Leader’s pre-emptive call for what was described as a massive and unrealistic increase was indicative of him having knowledge of the budget. It could have been a manifestation of what Minister Cathy Hughes noted as “the tentacles of the last government [being] large and deep.” Several days before the budget presentation, the budget estimates would have had to be sent for printing and this would have allowed persons in the system (both within and without the Ministry of Finance) to have gotten sight of details.

Nevertheless, Minister Jordan put the matter to rest when he clarified that “an announcement on salary increases for public servants, for 2016, has to await the conclusion of discussions with the relevant unions.” Despite the opposition’s attempts to create hysteria and anxiety, government’s civil and mature approach of respect and inclusivity was welcomed and heralded by union representatives and public servants have demonstrated patience and understanding.

Note: In Part 2 we will review the new licensing fees, reduction and removal of excise tax, restriction on the importation of used vehicles, the notice of intent to ban importation of used tyres.