Minister of Finance Winston Jordan presented a whopping $250B budget for 2017, the biggest for the coalition government, since assuming office in May 2015.

The budget was presented under the theme: “Building a diversified green economy: delivering the good life to all Guyanese.”

A number of measures were announced to stimulate the country’s economy and to create job employment opportunities and in keeping with an election promise, the government reduced Value Added Tax (VAT) to 14% from 16%.

However, Guyanese will now have to pay VAT on their electricity and water bills. According to Minister Jordan, once the electricity bill exceeds $10,000 and the water bill is more than $1,500, then the 14% VAT will have to be paid.

This has since attracted the ire of persons, who vented their disagreement with this measure on social media. But Minister Jordan, during an interview with the media immediately after his budget presentation said that the measure implemented by the government is a reasonable one.

“$10,000 is a reasonable sum for a low income person. Can you see a low income person on a salary of $55,000 using electricity of $20,000, with rent of maybe another $40,000? It can’t happen. Let’s be reasonable about these matters and $10,000 is a reasonable sum. It also acts as a conversation measure,” the Finance Minister said.

Budget highlights

It was also revealed that local and foreign beverage companies have to pay GY$10 per unit (bottle or can) from January 01, 2017. According to Minister Jordan, the law will be amended to create a level playing field for local and foreign companies in keeping with Caricom’s Treaty of Chaguaramas.

Old Age Pensions have increased to GY$19,000 and GY$7,500 for monthly Public Assistance. Personal Income Tax has been reduced from 30 to 28 percent for persons earning less than GY$180,000 per month and the Income Tax threshold has been increased to GY$60,000 or one-third of the gross salary, whichever is greater.

It was disclosed that in 2017, almost $1B will be allocated for the implementation of a series of renewable energy projects. This is a contributory phase in furthering the ‘Green Development’ Plan.

Building on previous initiatives with a low carbon focus, the government will review and expand the scope on alternative energy sources. Some immediate measures are as follows:

-Reducing taxes on hybrid vehicles

-Zero rating excise tax on biofuel

-Restriction in used tyres and reduction of taxes on new tyres

A total of $16M has been allocated for the established Toshaos Council Secretariat to enable the council to effectively carry out its mandate of catering for the needs of the Indigenous Peoples.

To expand coverage of all people as well to optimize revenue collection at the Guyana Revenue Authority (GRA), 13 different services will be guaranteed and expanded, including:

-Issuance of driver’s licenses

-value-added tax

-tax reform processing

In addition, Ports-of-entry will be established at Parik , Charity and Morawhanna

Between 2015 and 2016 Guyana has improved by 16 places on the World Bank’s ranking of ease of doing business. In 2016, a total investment including foreign- direct investment overseen by Go-Invest totaled $114.8B, which is a significant increase over the $89B inflow in 2015. In 2017, $139.8b will be invested in the sector.

Minister Jordan says 3,870 new jobs in the sectors of tourism, agriculture and light-manufacturing are projected through an investment of $138M for Go-Invest. In 2017, the government will commence the first phase of the Linden to Lethem road project, work on a permanent fixed bridge across the Essequibo River, seek funding to expand the bridge from Monkey Jump to Bartica and resurface Linden/Soesdyke Highway. Minister Jordan says that due to the Golden Jubilee celebrations, tourism to Guyana has increased. Riding on this momentum, he highlighted that a National Tourism Policy will be drafted.

Minister Jordan: says $262.5M will be spent to prevent deterioration of roads in the hinterland. It was noted that pedestrian overpasses will be constructed for the first time in Liliendaal, ECD, Houston, Eccles and Peter’s Hall, East Bank Demerara. And $9B has been allocated in 2017 budget to complete the expansion of the Cheddi Jagan International Airport.

Minister Jordan said that some $2.5B will be used for the construction, rehabilitation and overall development of shipping facilities in regions 3,4,5 and 6 and $338M for construction of landfill sites at Lusignan, Belfield, Bartica and Mabaruma

Government will commence discussion to develop a national port authority and reconstruction of Port Georgetown to reduce costs, improve shipping opportunities and minimize loading and off-loading of cargo.

Government will conduct a detailed feasibility study for a permanent high level Demerara bridge, it is forecasted that work will commence in 2017.

Government will also commence the first phase of its waterfront development programme including feasibility studies including boardwalks along Stabroek to Ogle and Vreed-en-Hoop.

In addition, $14.1B has been allocated for continued development for maintenance of roads and bridges including those at Hinterland communities in Regions 1, 7 and 9 and $100M allocated for 115 subsidised housing units in Regions 1 and 9

$9B has been allocated to support financing of GuySuCo’s operations. According to Minister Jordan, this brings the total to $32B provided to GuySuCo since 2015.

Meanwhile, $20.6B allocated to improve Drainage and Irrigation, increase cultivation and production in traditional agricultural production, promote large scale agriculture in the intermediate savannahs as well as explore options for efficient green technology in agro-production and practices.

Minister Jordan noted that Central Housing Planning Authority will review house-lots and review the mechanisms used to enable home ownership.