Gov’t to ramp up infrastructural spending …to spur economic growth
Minister of State Joseph Harmon
Minister of State Joseph Harmon

…takes aim at cutting waste at state agencies

DETERMINED to jumpstart the economy, government is banking on its major investments in the housing sector and other areas to spur economic growth.

Speaking at his post cabinet news conference held at the Ministry of the Presidency, Minister of State, Joseph Harmon, acknowledged that in 2016, there was not enough implementation of government’s public sector infrastructure programme, however this year it is expected to be different.

“This year as you can see, the contracts have started to reel off. We are better organised now and therefore all of the contracts which have been placed in this budget…we’re going to use that to ensure that the economy is basically better positioned,” Harmon told the media.

He said too that government will be encouraging private investments and re-committed to strengthening cooperation with the private sector. “We encourage private sector involvement in the economy. We are going to engage the private sector in a more meaningful and aggressive way so that this partnership between government and private sector can be used, that energy, that synergy which the two parties bring together, can be used to basically boost and move this country forward,” Minister Harmon said.

In late 2016, Minister of Finance, Winston Jordan, presented the country’s biggest budget of GYD$250 billion 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.

A report late last year by the European Commission for Latin American and the Caribbean (ECLAC), had said that after two consecutive years of economic contraction, Latin America and the Caribbean will experience a modest growth of 1.3% in 2017, with Guyana projected to grow by 3.8 %. Guyana’s growth rate for last year was pegged at 2.6 per cent.

Cutting waste
Meanwhile, Harmon announced that government has embarked on a number of measures aimed at cutting cost at several government ministries in an effort to revive the country’s economy. This was decided at the February 28 conference of ministers, hosted by President David Granger at State House.

Harmon told the media briefing that the government is in a period of austerity and that relevant measures will be adopted within all ministries to reduce expenditure and to promote more efficient utilisation of government’s resources.

“It means that you have to be a little more careful in how you spend your money to make sure that it last. It means that you have to reuse envelopes. We have several measures which we will circulate to government ministries on how they can cut back on expenses. When you leave a room, you don’t leave an Air Conditioner running, you don’t leave lights running and all of these things so there are practical measures which will be used by the government to ensure the austerity that I’m talking about and that the monies which you have that it lasts you longer and that you don’t have to go back later down in the year for supplementary and all of that. So it is really about being very sensible and using resources which you have to the best of your ability,” the Cabinet Secretary said.

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