THE landmark $781.9 billion budget for 2023 has been backed by widespread approval among all sections of society, including those who traditionally support the opposition, says a report by the North American Caribbean Teachers Association (NACTA).

The ongoing opinion survey is being conducted by well-known pollster and political analyst, Dr Vishnu Bisram.

On February 2, 2023, the National Assembly approved the country’s largest budget to date. It was the fourth budget to be presented by the People’s Progressive Party/Civic (PPP/C) administration since taking office in August 2020.

Since January 23 when it was first read in the National Assembly, both sides of the House participated in five days of debate, followed by four days of consideration of estimates in the Committee of Supply.

The NACTA survey polled 550 individuals – 40 per cent were Indians, 30 per cent were Africans, 19 per cent were of mixed race, 10 per cent were Amerindians, and 1 per cent were described as others – reflecting the demographic composition of the population. The data was analysed at a 95 per cent confidence level.

The survey found that there was “strong support” for Budget 2023 and there “… was virtually no opposition to the budget among the public, although almost everyone polled did express concerns about price increases and inflationary impact of the proposed huge spending.”

The budget, based on the latest opinion poll, found widespread approval among all sections of society including those who traditionally support the People’s National Congress Reform (PNCR) and who voted for A Partnership for National Unity+Alliance For Change (APNU+AFC).

The budget found disfavour with only five per cent of the respondents (representing the demographics of the population); seven per cent did not give an opinion on the budget. The high approval rating (88 per cent) of the latest budget, bolsters public confidence in the government’s handling of the economy, the report said.

Survey respondents reported that a strong approval rating of the budget may well have the effect of boosting the popularity rating of the government, President, Prime Minister, Vice President, and other officeholders and increasing the electoral prospects of the incumbent party (PPP/C) in local government elections to be held later this year.

“Every respondent in the poll expressed support for increases for pensioners, various child and adult grants, poverty alleviation, salaries for public servants, educational scholarships, part-time employment, healthcare, infrastructure and other public works, among other programmes. They praised the planned investment in community projects and services, expansion of housing, tertiary education access, developmental projects, and safety programmes.

“They are hopeful that the budget will lead to a more affordable and livable environment, but they complain about neighbourhood security from criminal elements. Almost everyone said not enough is being done by the security forces to combat crime,” a release from NACTA said.

However, while praising the government for all the positives in the budget and welcoming the increases in spending and the various handouts, half of the respondents said these may not be enough to raise the standard of living because of rising prices.

Almost all of the respondents complained about rising prices (inflation) on almost every item, triggering concerns about the potential inflationary impact of the budget.

The respondents appealed to the government to find means and ways to address inflation (rising prices) to shield those who are living at or below the poverty line and those on a fixed income, who can barely make ends meet.

“In spite of their concerns about inflation and poverty reduction, the public feels very good and optimistic about the future of the country. Overall, the public feels that the budget and planned policies are very good for the economy, describing it as progressive, that will lead to stronger economic growth in the coming years,” the association said in its report.

FULLY FINANCED

Budget 2023 was presented this year under the theme: “Improving Lives today; Building Prosperity for Tomorrow.”

Despite being 41.4 per cent bigger than Budget 2022, it is fully financed and has no new taxes.

It is the second budget that will benefit from financing from the proceeds of Guyana’s new and emerging oil-and-gas sector, following the historic passage of the Natural Resources Fund (NRF) Act, which addressed the most “offensive deficiencies” of the old Act.

Budget 2023 also benefits from continued financing through projected withdrawals from the NRF of US$1 billion this year, the equivalent of G$208.9 billion, to finance developmental priorities.

Dr Ashni Singh, during his presentation last month, said: “Budget 2023 strikes a balance between addressing the pressing needs of today and the critical investments needed for tomorrow, ensuring that both are attended to.”
As he went on to say: “Budget 2023 also reflects a number of measures that are geared towards providing further stimulus to economic activity and the productive sectors, as well as to bring relief to households and individuals.”
The sum of $84.9 billion is for the health sector, and $94.4 billion for the education sector, so as to ensure that the country’s young people are prepared for the future.

More importantly, within these, there is an allocation of $13.1 billion to advance work on the paediatric and maternal hospitals, and six regional hospitals at Lima, De Kinderen, Diamond, Enmore, Bath and No. 75 Village, as well as $12.4 billion to improve education infrastructure countrywide, among many other things.

This year’s budget also caters for a number of large projects that will transform the country’s energy supply, including provisions for the construction of an integrated natural gas liquids plant, and a 300 MW combined cycle gas turbine power plant within the Wales Development Zone.

The people-centred budget also places a sum of $50 billion back into the pockets of citizens through the proposed increases in old-age pension, public assistance and the income-tax threshold, along with other cost-of-living measures.

The income-tax threshold has been increased by another $10,000, taking it from $75,000 to $85,000.

As a result of the adjustment in the tax threshold, over 12,000 persons will be removed from paying income taxes, while every single taxpayer will benefit in one way or another.

Public assistance has also been increased from $14,000 to $16,000. Over 29,000 persons are set to benefit from this initiative, which will provide over $700 million in additional disposable incomes to these individuals.