— stakeholders say Budget 2020 is step in the right direction

GOVERNMENT in a move to revitalise productive sectors and “return” money to the pockets of Guyanese, presented a $329.5 billion emergency budget which persons believe has something for everyone, from those in the “backdam” to persons in an office.

Guyana’s economy like many others around the world has experienced a decline in economic activities because of the novel coronavirus (COVID-19) pandemic. But unlike other countries, Guyana was also affected by a protracted electoral process which ended only on August 2, 2020.
Ailing sectors, a rising unemployment rate, lack of jobs and a dreaded disease were, and in some cases, still are some of the threats facing the country which sits on the edge of South America and has a population of about 750,000 persons.

Some say revitalising and stabilising the economy is a tall order, but the new People’s Progress Party/Civic (PPP/C) government has started the process of “rebuilding” by rolling out its budget which includes their “plan for prosperity.”

Minister of Public Infrastructure Juan Edghill, presenting Budget 2020 to the National Assembly on Wednesday, said government’s “plan for prosperity,” despite the challenges, has taken root in this emergency budget, and Budget 2021 will outline the transformative agenda for the medium-term; one that is inclusionary and participatory in its architecture and implementation.

The Guyana Chronicle spoke to persons who agreed that the budget does not include “everything” because of the existing circumstances, but it is a step in the right direction.
Rice Miller and President of the Essequibo Chamber of Commerce, Rupan Ramotar, said this is one of the best budgets in years.
In offering relief to the agriculture sector, which is often referred to as the lifeblood of the local economy, government announced removal of the Value Added Tax (VAT) on agro-chemicals and pesticides.

Ramotar, while speaking at a meeting, said: “The budget focuses on improving the lives of all Guyanese…I am happy with the interventions and removal of VAT on agro-chemicals and pesticides.”

Another farmer Kishore Singh, who owns a 10-acre rice plot, said he spends approximately $30,000 on chemicals. These expenses, he said, will now be lower.
“It is good when these things happen. With the removal, we farmers can be able to reap the benefits by achieving a lower cost of production,” Singh said.
Other stakeholders in the agriculture sector, sugar workers, will also be able to reap the benefits of Budget 2020, as government has allocated $5B to the Guyana Sugar Corporation (GuySuCo), of which $3B is set aside for critical works geared towards the phased re-opening of the Rose Hall, Skeldon and Enmore estates.
“As a little boy growing up our parents always encouraged you to get a job at the estate because you will get the benefits, even if is not right away; so that was my goal since going to school, to work in the estate. But in 2015 you keep hearing the estate gon close and nobody believed, but when you receive the letter in 2018 you get shocked.

“It was heartbreaking. But now that this government is committed to re-opening the industry, we all know that without agriculture this country is nothing and is the biggest foreign exchange [earner] in terms of the economy for the country that will remain even after oil,” 31-year-old, Hemraj Badal told the Guyana Chronicle.

Oil, however, remains a critical part of Guyana’s development, as the sector unlocked new revenue and spill-off opportunities for Guyanese.

ENABLING BUSINESS ENVIRONMENT
Envisioning that more economic activities will mean more visitors and investors coming to the country, President Dr. Irfaan Ali had announced that new hotels will receive special incentives, a move which will likely attract even more investors.
In an invited comment on the announcement, Chairman of the Private Sector Commission (PSC), Nicholas Boyer, had said that the plan is “genius” as though the pandemic may appear to be a barrier, now is the opportune time to invest in new hotels as, in just about two years, with a vaccine, the coronavirus will be a thing of the past.

He averages that it takes an international-standard hotel just about two and a half years to be constructed so, when the pandemic is safely over and the economic boom begins, Guyana will not miss a beat.
“I’ve seen a lot of visitors who are interested in investing in Guyana as well as in the diaspora who are interested in re-investing into Guyana. So it is understood that despite the pandemic, business tourism will grow, not this year, definitely not this year and probably not the first half of next year but… when you put in the incentives you give the investors a kick start to their projects,” he mapped out.

Those projects are however secondary right now to the ongoing fight against the dreaded COVID-19 pandemic. Government has set aside over $51 billion for the health sector, and this includes money which will be used in the regions to fight the pandemic and deal with routine ailments.
Workers who have been at the forefront of the fight against the pandemic have not been overlooked. And, in recognition of their efforts, government has allocated $150 million to frontline workers.

“I think that the announcement was a very timely one because as persons around the world can see, healthcare workers are actually putting their lives and the lives of their families at risk, to be on the frontline, to provide care for not only patients that are COVID-19 positive, but also other persons that come to the hospital with other conditions,” said Senior Nursing Assistant attached to the Male High Dependency Unit, Kevin Samaroo.
Apart from the monetary support announced, he lobbied for a raise of pay for health workers and duty-free concessions for nurses. He also recommended that cafeterias be installed in all hospitals so that health workers can have a designated place to take their lunches and relax.
While more is needed in every sector, government’s aim, as said by officials, is to be inclusive, and it is to this end that Minister Edghill said issues of disabilities are wide-ranging in Guyana, and many of the challenges are associated with the inability to diagnose at early stages, and to support those who are determined to be differently-abled.

Government, he said, will continue to work at an interagency level and with stakeholder organisations to ensure that opportunities for training, employment, and effective diagnosis, treatment and rehabilitative support and services are expanded across all 10 regions.
Renowned advocate for persons living with disabilities, Ganesh Singh, told this publication that the disability community remains optimistic that some of the measures in the budget will positively impact their lives.

BIG PLUS
In speaking about the commitment outlined by Minister Edghill, Singh said rehabilitative support and services will be a “big plus” as it will help people to gain independence. Early diagnosis will also help persons to receive therapy and other necessary help in a timely manner.
Singh also welcomed the more than $52 billion allocation for the education sector. The advocate remains hopeful that through this investment, more resources will be allocated towards special education needs.
“We had meetings with government and we highlighted a lot of what we would like to see…we understand it would not be in 2020, but the proposed measures are ok…we are hopeful that through allocations we will get systems in place to improve the lives of persons living with disabilities,” said Singh.
The advocate also commended government for the increase in old age pension, which will move from $20,500 to $25,000, from January 1, 2020.
Seventy-year-old Patricia Gould of Patentia Housing Scheme, shared with the Guyana Chronicle that she is contented with the increase and is grateful for whatever is provided to make the lives of the country’s senior citizens a little better.

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“Whatsoever I get, I’m contented; if I get more, I am grateful for it,” Mrs. Gould said, adding: “I am always contented; I go to church, and I believe in God. I don’t have a husband; my husband died six years ago, and I thank God I am making out. I have two children that are big. I don’t depend on them; they have their own responsibility.”
The recently announced series of measures will also result in additional disposable incomes being made available to households. Some of these are the removal of value-added tax (VAT) on electricity, water, medical supplies, cellphones and building and construction materials. These are in keeping with government’s commitment improve incomes.

“It’s an excellent move, because a lot of young persons are struggling to build their homes, and they are now able to do so at a reduced price. So, kudos to the president for doing it,” said Lisa Agard, a homeowner herself, who built her home a few years ago.
“The opportunity is now presented for persons to take that step in acquiring their own home; that’s a dream for the average Guyanese,” she added.
As things stand currently, building materials attract a 14 per cent VAT, the removal of which will now mean that for every $1M a buyer spends on that commodity, they will save $140,000 when the measure is applied, and instead pay just $860,000.

“It’s an absolutely brilliant idea! It means more monies to spend on the building,” said Neville Butts, who first started building his home some six years ago at Herstelling, on the East Bank of Demerara.
Owning a vehicle is also expected to be affordable, with the reversal of the ban on used tyres and importation of vehicles eight years and older.

AFFORDABLE AND ACCESSIBLE
An employee of Giftland Mall, Alex Giddings, told this publication that vehicle ownership will now be more affordable and accessible.
While he does not wholly agree with the reversal of the ban on used tyres, he said the importation of vehicles eight years and older, will suit the financial budget of a lot of Guyanese.

The Guyana Gold and Diamond Miners Association (GGDMA), in a release, had said specifically, among the measures which will lend to the development and sustaining of the mining sector are: tax concessions for recapitalization; reversal of Value Added Tax (VAT) on heavy-duty equipment/machines; the abrogation of certain unnecessarily burdensome requirements related to the licensing of equipment and the transportation of fuel, as well as hinterland infrastructural development.

The GGDMA noted that the government had proposed in its manifesto for mining, the implementation of these and other measures over the years and it is satisfied with the partial fulfilment of the promises, while it was in opposition last year.
The GGDMA believes that the overall measures are exactly what the country needs at this time as they are pro-business and pro-development for the benefit of Guyanese at all levels.

Minister Edghill had said he believes that budget 2020 offers hope and relief in its measures, and programmes and projects. It reflects government’s fierce dedication to ensuring a better quality of life for all Guyanese.
“Our government will continue to fiercely defend our cherished democracy as we have recently done, and we will always champion upholding the rule of law.
“We will continue, as always, to secure working partnerships with our private sector – from the fruit vendors to the rum producers, farmers to fishers, miners to millers, air service providers to minibus drivers. We will work within the public sector with all diligent public servants, including soldiers, police, educators, and health workers – especially those who are on the frontline – to ensure effective delivery of public services to all Guyanese, particularly at this crucial time,” said Minister Edghill.