By Vishnu Bisram

THE 2022 budget was passed Thursday evening. Snap interviews across the nation find overwhelming support for the budget. People believe it will make their lives better. They feel that their incomes will improve. Almost everyone says it is a great budget with some saying there could have been greater relief for the middle class, the poor and pensioners. Overall, the public seems pleased with the budget because there are goodies all around for everyone.

Of those interviewed, almost everyone approves of the budget. A large majority also continues to trust the PPP rather than the coalition to manage the economy, with many in the public not forgetting how the Coalition overtaxed them and overspent during its tenure. The public also continues to have faith in Vice-President Jagdeo on economic matters and as the person in whom they have confidence for wealth creation.

As many in the public opined, instead of mauling the budget, the opposition could have given a dispassionate, unemotional analysis of the budget. There must be something in the budget that is praiseworthy. Several parliamentary responses had no relationship to the budget.

The budget allocates a lot of money to infrastructure with an ambitious capital-expenditure programme that the private sector says will lay the groundwork for future development. The pubic welcomes the increased investment in public infrastructure. The people clamour for better roads and bridges and the government has responded with a budget that addresses road construction – new highways and modern roadways. There are increases in allocations across the board in every area.  Those polled say no section of society is neglected or marginalised in the budget. Everyone agrees that infrastructure is a key to development – it lays the groundwork for long-term expansion of the economy, paving the way for investment and development.

Productivity and growth are key objectives of the budget. There is growing confidence among the population for Guyana’s economic progress. They feel that with increasing amounts of oil there are a lot of opportunities for the country to grow quickly.

The budget talks of achieving higher inclusive growth, modernisation of the economy, expansion of education, increasing use of technology, green-energy transition, climate change, among other critical areas that are key to fostering development. These are laudable goals. And no doubt they will be achieved as government plays an enabling role in driving growth through private investment.  The budget is full of possibilities for more investments and job-creation. Some say the budget is “people-friendly”, bringing new confidence to usher in development in the midst of a terrible calamity of the COVID pandemic.

The welfare of the poor is an important aspect of the budget. Government has increased pension payments though the public feels the increment should have been larger. Also, farmers feel more could have been invested on capital expenditure in farming communities and infrastructure in farm lands.  The farmers note that since independence, for some 33 years, they were ignored by government except during the PPP administrations. They would have liked funding for tech farming – aqua and others encourage farming.

The economy remains COVID-stricken and in need of stimulus. And the government has offered stimuli in various areas linked to production. But there could have been some value-added incentives to encourage manufacturing. The country needs to accelerate people and capital productivity and value-added creation through innovation, so that we can export to our neighbours. This would spur new industries, thereby leading to job creation.

The population complains about unaffordable price increases. And the government has responded to lower prices. The government is using fiscal policy to tame the burdensome inflation.  Inflation is mostly imported, driven by high fuel and commodity prices. It cannot be tamed by monetary policy. Fiscal policy – reducing taxes – is apt. Reduction in taxes will make goods affordable, increase production, and grow the economy.

Another complaint is the tax burden. The public and businesses welcome tax breaks such as a decline in import duties. But they say more breaks and incentives are needed.  They say they would like lower personal income tax rates. Businesses also cry for a lower corporate tax rate. But government needs resources to fund projects. And consumers as well as businesses have gotten other kinds of breaks to lower the cost of living and prices to expand businesses. Farmers appeal for duty concessions for four-door pick-up cabs such as those given to single cabs. And there is an appeal for enhanced social security benefits for the poor and pensioners. Over time, these should be addressed.
While everyone in the public may not have gotten everything they want, they are pleased with the budget.