THE latest North American Caribbean Teachers survey has revealed that the 2023 Budget has received widespread approval. This comes as no surprise given that it is a pro-growth and poverty-alleviating budget. There is something for everyone and it will help boost economic growth.
Last Thursday evening, after nearly three weeks of intense debate followed by questioning of each ministry’s planned expenditure by the opposition, the $781 billion plus budget was passed in the National Assembly. This was the largest budget in the history of the governance of the country.
It is a sprawling budget that is development oriented and that is aimed at reducing inequality between the super wealthy and the working class. It budgets for a lot of new infrastructure and the upgrading of the old one. It also has funding for new projects that are energy-related that will create a lot of jobs. It also has money for job creation. The budget is geared towards modernising the economy, with a network of new roads and bridges and the rehabilitation of existing ones. It lays the basis for continued development. The budget would create many good-paying jobs, which will help to reduce poverty.
The budget includes a laundry list of policy initiatives designed to create jobs, improve working and living conditions, salaries for public workers, tax breaks, child care, access to healthcare, education opportunities, housing, climate change issues, payments of pensioners and children grants and payments for alternative energy, among others. It reduces inequality between the rich and the working class. Government has removed VAT on some items and raised the threshold on taxable income to put more money into the hands of consumers. It makes good fiscal sense for the government to invest in various critical programmes that will yield dividends later.
The budget aids the working and the business class. More money will be put into the hands of government workers and pensioners and many others who will be the recipients of grants. Their spending will help the business community to invest.
The budget is a fiscal blueprint for rapid growth. Increased investment and spending would boost economic growth in an economy that is already growing at some 40 per cent annually. This year’s projected growth may be even higher.
The country has been achieving steady growth rates in the last few years that were never experienced in its history. No country, regionally or even globally, has experienced such growth. Guyana is the focus of media globally as it is seen as a success story owing to its newly found oil wealth.
No previous budget has addressed issues or funded as many programmes as this one will. Not surprisingly, the government has received all-round support for the budget. The plan drew praise from across the board, including critics. A recent poll conducted by NACTA finds overwhelming favour (88 per cent) with the budget. From the poll’s findings, it’s fair to say that the public, at least in theory, like the idea of good infrastructure, healthcare, education, jobs, child welfare, a clean environment and the many other initiatives being promoted by the government.
The country has been in safe hands since August 2020. The oil wealth is being managed and policies that would modernise the economy are being pursued.
The NACTA poll also notes that the population expresses confidence in the government’s handling of the economy. That is great news for President Ali’s administration.
The NACTA poll notes that the public is concerned about inflation. That is a temporary problem that is being addressed. The Ukraine War, supply bottlenecks, shortages of materials and rising international transportation costs are the primary causes of inflation. The government has pursued policies to address rising prices – reducing VAT items, taxes on fuel, and shipping fees. The government has also set aside funds to boost food production that will ultimately lead to lower prices at the market.
Kudos to a very good budget that reflects a strategic vision for modernisation of the economy.
