THE Opposition People’s Progressive Party (PPP) opened the 2017 Budget debates with a call for the proposed budget to be withdrawn because the new taxes being introduced are unconscionable.PPP frontbencher Irfaan Ali opened the debates by blasting Government for what his party considers to be “anti-people and anti-development” measures and projects. A very dramatic Ali told the National Assembly that while the APNU+AFC Administration is blaming the drop in the economy for many of its actions, it nevertheless went ahead and gave its ministers handsome increases.
“Mr. Speaker, it is public knowledge that the PPP/C Administration bequeathed (to Government) an economy that was not only diversified, but (had) weathered the global economic and financial crises. Indeed, the economy was so strong that the APNU+AFC government was able to award its ministers a 50% increase in salary; finance the D’Urban Park project; pay out billions to several companies (to settle questionable legal claims) (DDL, BK, Rudisa); and rent a bond for storing medical supplies when there was no need for such a facility,” he told the House.
The PPP MP said that although the economy has thus far contracted for 2016, the APNU+AFC Administration is proposing for former Prime Minister and City Mayor Hamilton Green a hefty pension of more than $20M annually.
“Mr. Speaker, since we have a ‘caring government’, one would not expect it to go on a “spending spree” when the economy is in a weakened state,” he posited.
Ali has said that after carefully reviewing the budget, he has found it challenging to identify measures that would green and diversify the economy, and ultimately deliver the “good life” to the people.
“Mr. Speaker, it is unfortunate that after expending so much resources and time to developing one of the most comprehensive development (strategies) aimed at placing Guyana on a sustainable and low-carbon pathway, the APNU-AFC government plans to “reinvent the wheel” by crafting a new green strategy,” he argued.
According to him, it is sad that the Government would abandon the Low Carbon Development Strategy (LCDS), which emerged out of extensive consultations with key stakeholders and obtained approval from Guyana’s international partners. “And what are we replacing this strategy with? Some new programme that the minister described as a ‘Green State Development Plan,’” he lamented.
Ali said that from all indications, Government is unclear what a “green economy” is. “Greening an economy is not restricted to the elimination of our dependence on fossil fuels, but also involves shifting to economic activities that are environmentally friendly and economically feasible. In the LCDS that was crafted by the PPP/C Administration, we specifically highlighted all the new growth sectors that are capable of greening the economy while diversifying our economic base. We also identified a project that would help Guyana achieve the target of 100% renewable energy supply in the shortest possible time,” Ali explained.
The PPP frontbencher then moved on to dismissing the measures outlined to foster the green economy. “In the 2017 National Budget, there are only measures to green the expenditure of businesses, but nothing to encourage our businesses to green their income.”
In particular, he said, Government is offering tax incentives to businesses to invest in solar energy, electric vehicles, and charging stations.”
However, the incentives may sound appealing on paper, but appear impractical, he said.
Rhetorically, he questioned: “Who would buy electric vehicles when charging stations are absent? Who will fix these vehicles if they require repair? Do we have mechanics to service these vehicles? How many Guyanese have the financial capacity to purchase these vehicles, when they are struggling to buy new tyres and could hardly afford the relatively cheaper traditional models?
“And how many businesses (would) realistically invest in charging stations when the average Guyanese will most likely continue to use traditional vehicles, which are less expensive to acquire and maintain?” Ali asked.
Turning his attention to the taxes proposed by Government, Ali argued that the 2017 National Budget is saturated with taxes that would suffocate both traditional and non-traditional businesses.
Another PPP MP, Priya Manickchand, said the proposed budget comes as a major shock. Waving a newspaper in the area as she stood to defend her party’s call for a withdrawal of the budget, Manickchand said citizens across Guyana have been expressing their dissatisfaction.
“When we say this budget is useless in terms of our development path, we speak on behalf of the people,” she told the House, even as she was being heckled by the Government members.