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Budget measures breakdown

In his second Budget presentation, Finance Minister Winston Jordan pointed out that this

Prime Minister Moses Nagamootoo during the budget presentation

Prime Minister Moses Nagamootoo during the budget presentation

year’s Budget was crafted based on the policies and programmes that were outlined in the manifesto of the A Partnership for National Unity/Alliance For Change (APNU/AFC) coalition and subsequently elaborated on in his maiden budget speech which focused on the “Good Life” for every Guyanese.
This year’s Budget was packaged as “Stimulating Growth, Restoring Confidence: The Good Life Beckons” and according to Jordan, it is anchored on the five pillars outlined by President David Granger in his New Year’s address to the nation.
“Mr Speaker, in keeping with these pillars and the direction in which we are steering the economy … this theme highlights the imperative of growing and ‘greening’ the economy in an atmosphere of renewed hope and expectation for an improved quality of life of the citizenry,” the Minister stated.
He added that there was widespread consultation with Private Sector organisations, trade union bodies, women’s groups and for the first time, youth representatives from all 10

Public Security Minister Khemraj Ramjattan, while Minister Jordan presents the budget in the National Assembly

Public Security Minister Khemraj Ramjattan, while Minister Jordan presents the budget in the National Assembly

regions in shaping the National Budget.
“We were particularly encouraged by our interface with them, as it gave us a first-hand understanding of many of the issues that are of immediate concern to youth. They brought with them refreshing perspectives and inspiring thoughts that resonated with the ‘fresh approach’ which the coalition Government has been advocating,” the Minister remarked.
Jordan went on to announce several steps taken by Government towards ensuring that its people get the “Good Life” the Administration intended.

Pension
Firstly, he disclosed that the Old Age Pension was increased by a scanty $1200 to $18,200, which is expected to benefit some 50,000 pensioners. He noted that within the space of eight months, the APNU/AFC Administration was able to increase Old Age Pension by 38.7 per cent, the largest in recent memory. However, a look at last year’s events would serve as a reminder of the fact that despite a sizable pension increase, the coalition Administration dropped the electricity assistance programme much to the disappointment of thousands of Guyanese, particularly the elderly beneficiaries.

Public assistance
Moreover, the Finance Minister also outlined that over 9600 persons would benefit from public assistance, which was raised to $7300 from $6500, reflecting a 24 per cent increase since the coalition Government took office.
Both of these payments will take effect from April 1, 2016. Also effective on that date, citizens 65 years and older who are travelling overseas on a Guyanese passport will no longer be required to pay any travel tax, but will still have to pay the Airport Security Tax of $1500. While this may be deemed a good move by Government, only a small fraction of pensioners would seek to benefit from this.

Tax threshold
With respect to the taxable income threshold, Jordan revealed that this has been increased by $5000 to $55,000. “With this measure, over 68,000 workers will be removed from the income tax roll, in addition to the fact that workers have an additional disposable income annually,” he stated without touching on the topic of the minimum wage.
Meanwhile, the Finance Minister explained that discussions were still ongoing on the salary increases. “Mr Speaker, an announcement on salary increases for public servants for 2016 has to await the conclusion of discussions with the relevant unions. The Government understands the disappointment this will create among public servants, but wishes to assure them of our commitment to their welfare and advancement. We ask that they give the collective bargaining process an opportunity to work,” he said.
Once again, Government failed to fulfil its campaign promise of special increases for nurses, teachers and members of the disciplinary forces.
In relation to those measures that support Government’s ‘greening’ programme, the Finance Minister said that the importation of used and/or reconditioned vehicles would be restricted to those under eight years old from the date of manufacture to the date of importation effective May 1. He also revealed Government’s intention to increase the tax on the importation of alcohol.

Infrastructure
Furthermore, Minister Jordan again this year failed to outline any original plans of the APNU/AFC Administration to transform the country’s infrastructural landscape with the exception of concluding its sustainable urban transport plan, which includes a traffic model for Georgetown, a parking management plan, regularisation of minibus operations, provision of public transport facilities, and the use of public transport and non-motorised modes in the most congested areas.
The education sector received a whopping $40.3 billion, representing 17.5 per cent of the 2016 Budget. Under the Hinterland Development Programme, Government has made provision for the design of a new dormitory at Liliendaal, Greater Georgetown, to accommodate students with interest in enrolling in institutions of higher learning.
On this note, the Finance Minister also disclosed an initial $25 million for the establishment of a Centre of Excellence in Information Technology (CEIT), which will be financially supported by the Indian Government.

Health sector
In the health sector, among the highlights were the construction of the new maternity wing at the Georgetown Public Hospital and the India-funded Specialty Hospital, both of which were catered for in the $28 billion budget, 10.9 per cent of the National Budget.
Some $4.2 billion was earmarked in the housing sector to develop the four communities identified for township status – Mabaruma, Bartica, Mahdia and Lethem. National security was given a total of $24.6 billion to support the implementation of priority actions stemming from the strategic plans that were developed for the Public Security Ministry, the Police Force, the Prisons Service and the Guyana Fire Service.

Agriculture
Moving to agriculture, Jordan announced that a total of $20.3 billion was injected into this sector to create an economic environment in which farming and agro-processing operations can grow the economy and create employment. Furthermore, Government also said that it would inject $9 billion into assisting the sugar industry in its recovery and modernisation programme, while it will continue to support the rice industry to access new trade partners.
However, nothing substantial was mentioned for the fisheries sector. This was also the case with the extractive industries, such as bauxite.
In addition, the Finance Minister revealed that this year, Government would be looking at options at hand for the repayment of $5.24 billion owed by CLICO, and would start discussions on the modality of an arrangement that would see the National Insurance Scheme (NIS) recovering this money over the long- term.
Government is also granting $2.5 billion to the Guyana Power and Light Inc despite having criticised the previous Administration for subsidising the agency.
In this regard, Jordan announced that effective February 1, the price of fuel sold by the Guyana Oil Company (Guyoil) will be reduced. Gasoline was dropped from $190 to $170; diesel from $161 to $150 and kerosene from $120 to $90.

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