THE 2022 National Budget Estimates were presented yesterday to the National Assembly by Senior Minister of Finance with Responsibility for Finance in the Office of the President. This was the third budget estimates presented and the largest and most impactful in terms of laying a solid foundation for sustainable growth and development. It was indeed a forward-looking budget, one that is consistent with the visionary thinking of President, Dr. Mohamed Irfaan Ali, and his PPP/C administration.
The Budget Estimates provide a framework which will accelerate the developmental trajectory of the country within the overarching goal of providing a better quality of life for the Guyanese people. One of the main highlights of the budget is that of tackling the rising cost of living caused by the COVID-19 pandemic. It is a known fact that the pandemic has an adverse impact not only on global food production but also on the supply chain thereby resulting in increased costs of imported items, including food items. President Ali had already given an indication that the 2020 budget will include a sizeable allocation to address the issue of rising food prices.
President Ali, in a pre-budget virtual address to the nation on the budget, had this to say: “I am aware of the impact that cost of living is having and while we cannot address all of the issues surrounding the cost of living I have instructed that resources be set aside to address the issue.” This sizeable allocation, the President said, “will be used through consultation with communities across the county to identify specific ways and initiatives” to ease the burden on the population.
The budget, according to the President, is all about removing burdens to Guyanese citizens and creating opportunities, reducing burdens, enhancing welfare, giving back more to the population, enhancing livelihood, improving living conditions and improving the quality of life of the Guyanese people.
In addition to addressing the pressing cost of living concerns of the Guyanese, the budget will also seek to create more business opportunities and to build entrepreneurial programmes, rewarding innovation and expand tourism through support for the private sector, enhanced local and international branding, training and development, small business support and through collaboration with major international chains who are investing to integrate closer with our local production system. The cumulative impact of these initiatives, in the words of President Ali, would result in “a positive incremental impact which would see more investment in people, more allocation to the vulnerable and a better quality of life for the Guyanese people.”
In all of this, the contribution of the oil and gas sector will be significant. According to President Ali, the passage of the Local Content Act would pave the way to reduce disparities that currently exist in the tax system that can undermine the competitiveness of local companies competing with foreign companies for business in the oil and gas sector under the local content framework. And, as promised by the President, the focus of the budget will be on economic expansion, growth while at the same time maintaining a low-tax environment. All of this will allow for higher levels of disposable income especially for low-income earners, pensioners and vulnerable groups. Health, education and social services will continue to be high on the government’s national priorities as reflected in greater budgetary allocations.
One key driver of the increase in the cost of living is the price of fuel, which the President said will be closely monitored to ensure that it does not eat into the disposable income of consumers. In this regard, the PPP/C administration will continue to implement measures to reduce the cost of fuel and freight charges.
The quality of life is conditional on a number of interacting variables including employment opportunities, access to quality education and health and home ownership. In this regard, specific measures will be put in place to reduce the cost of borrowing for home ownership, support for school children, teachers, elderly, and vulnerable groups including patients on dialysis.
The sum total of all these budgetary interventions will be a higher standard of living, more disposable income and higher level of purchasing power by consumers. And to further increase the disposable income of workers, the President has asked the Finance Minister to look at the personal income tax of taxpayers and to make the necessary adjustments in keeping with the budgetary framework and affordability.
These are all the necessary elements for economic take-off within the framework of a people-centred development paradigm for which President Ali and his PPP/C administration must be given credit. The President has repeatedly committed his administration in the pursuit of a development path with a human face in which people are placed at the centre of all budgetary interventions. President Ali has made it clear that “notwithstanding what is happening globally, rising inflation, empty shelves, increase in food cost, imported inflation, I have made it very clear to the Minister of Finance that we will not, in any way, introduce any new burden or taxes on the Guyanese people.”
These are all the defining characteristics of a President and administration that genuinely cares for the welfare and well-being of the Guyanese people.
