Emergency budget is a step in the right direction

I am obliged to respond to the former Minister of Finance Winston Jordan in relation to his statements in the Stabroek News of September 12th 2020 in the news item `‘Private sector’ budget has eroded revenue base, pumped up deficit – Jordan’

Mr. Jordan is the last person who should comment on this budget, as his leadership at the Ministry of Finance wreaked havoc on the economy, and bankrupted Guyana. His misguided philosophical approach is one which not only stifled the average consumer in Guyana but was onerous and burdensome on the private sector. No incentives were given for production and the promotion of productivity. To compensate for this, unleashed on taxpayers was a regime of abrasive and wide-reaching taxation; unprecedented in its nature in the Caribbean.

I would like to apprise the public that out of the Budget of $329.5B the PPP/C administration met with unauthorized and illegal spending of more than half of the budget from January 1, 2020 to August 2, 2020 as there was no Parliament since December 2018. A substantial portion of this budget had to cater for ‘rollover’ projects from 2019, undertaken by the APNU+AFC caretaker government. The claim by Jordan that the PPP/C administration has to spend $329.5B within the last quarter of the year is nothing beyond soundbites.

It is important to note that in 2014, the final year of the PPP/C’s administration, tax revenue totaled $135.2B. Within a mere five years, the APNU+AFC government’s tax revenues skyrocketed by $91B or a 67 percent increase from 2014. Notably, this increase in tax revenue came directly from the pockets of the citizens of Guyana in order to fund their lavish lifestyle in office. The sum-effect of Mr. Jordan’s policies is that the citizens of Guyana were left poorer.

What they did with this money is Mr. Jordan’s legacy to answer to the Guyanese people. But to point out a few, we saw bloating of the public sector characterizing this period, driving operational costs up by astronomical levels with no corresponding increase in work output. He must also answer why he transferred lands to people whilst as a caretaker minister, why monies were spent on capital works in Guyana against the financial laws of the country and why he lied to the Guyanese population about the US$ 18M signing bonus.

Recently, a $300M fraud was discovered by the Guyana Defence Force (GDF) around fuel supply at GUYOIL. Since GUYOIL falls under the Ministry of Finance, Mr. Jordan will have to answer for these as well.

It is my duty to ensure that the record is clear on this matter from the outset.

This Emergency Budget is a step in the right direction to rectify the wrongdoings under the Granger administration and seeks to usher in a new era of economic boom through

our plan for prosperity.

Measures enacted by President Ali’s government The PPP/C’s budget underpins its philosophy of a propoor approach to managing the economy where every measure is designed to affect the Guyanese population in a positive way.

A few of the measures in the budget can be categorized as efforts to:

Support COVID-19 Frontline Workers by setting aside $150M for their direct benefit

Reduce the Cost of Living by the reversal of VAT on electricity and water – a hardship measure placed on the Guyanese people by Mr. Jordan’s policies which is being removed by Dr. Ali’s government.

Increase Disposable Income by directly providing $25,000 per household through $4.5B in the Budget.

Measures to Improve the Provision of Education and Health

Removal of 25 percent corporate tax on private education which will translate into a reduction in school fees per child

Removal of 25 percent corporate tax on healthcare. This will translate itself to a lower hospital bill.

Removal of VAT on medical supplies. This simply means that the bill at the pharmacy is cheaper.

Support for miners through removal of VAT on machinery and equipment. Hardship measures created by Mr. Jordan’s policies severely hampered many smallscale miners forcing them out of operation. This new measure will enable 60 percent of small-scale miners to re-enter the mining sector.

Support for farmers through the removal of VAT on ATVs, the reversal of VAT on exports, reversal of land lease fees across all sectors which grew between 67 to 1900 percent under the APNU+ AFC government, removal of VAT on fertilizers, agrochemicals, pesticides, key inputs in the poultry industry, zero-rating of the poultry industry and the affording of tax concessions on investment in agro-processing facilities, cold storage and packaging. These measures will help to drastically reduce the cost for farmers.

Support vulnerable groups through:

Provision of $15,000 per child

Doubling of the uniform allowance

Reduction in cost of construction materials through the elimination of VAT contributing to the dream of home ownership for the average Guyanese, a reality

Reducing the cost of a mobile phone which is now used by children to access their online learning platforms

Slashing of all licensing fees by half – this will assist every person who is operating a small business, shop, grocery store, transport

Increase in old age pension from $20,500 to $25,000 Measures to support our Amerindian Brothers and

Sisters through:

The implementation of a programme that will see 25,000 solar units being distributed;

$800M for the Amerindian Development Fund (ADF) including the reintroduction of the Community Service Officers (CSO) programme aimed at developing young Amerindians in various villages. This will create job opportunities for approximately 2,000 youth;

$300M from the ADF for investments in productive assets including tractors, trailers and agriculture tools;

$10M for commencement of the design of the National Toshaos Council Headquarters; and,

Resumption of the Amerindian Land Titling programme.

With the approach laid out by Dr. Ali’s administration, citizens of all walks of life can be assured that his policies and commitment will result in prosperity. President Ali has committed to ensuring that his Plan for Prosperity, despite the challenges, will ensure that standard of living for every citizen is lifted. Guyanese can look forward to an inclusionary and participatory agenda in the mediumterm, leaving behind the dark days of Mr. Jordan and the APNU+AFC’s oppressive economic policies.

Yours faithfully,

Deodat Indar

Minister within the Ministry of Public Works