Norton calls for cost of living allowance in budget
Leader of the Opposition Aubrey Norton on Thursday called for a Cost of Living Allowance in Monday’s budget and a cutting of the Value-added Tax (VAT)
During a press conference, where a statement was read, Norton criticized the government’s “halfhearted” announcement of Budget Day which he feels has not generated any anticipation or excitement among the struggling Guyanese.
“While we expect the Minister with Responsibility for Finance to label the budget ‘the biggest-ever’, most ordinary Guyanese already know that it will not improve the living conditions of our people,” he charged.
Arguing that the budget will not bring any real improvements to the lives of ordinary people, Norton cited last year’s budget of G$900 billion which failed to uplift the citizens. He also predicted that the 2024 budget will prioritize infrastructure projects that benefit the elite, family, friends, and favourites of the People’s Progressive Party (PPP), neglecting the middle and lower classes.
The Opposition Leader also highlighted the absence of an integrated national development plan in favour of ad-hoc projects, as well as a focus on the quantity of expenditure rather than quality of life. He further criticized the government’s emphasis on symbolic economic growth over genuine human development.
While Norton expects the Minister of Finance, Ashni Singh, to claim that Budget 2024 will increase disposable income, he expressed doubts that the high cost of living and inflation will allow for any significant improvement in real income and spending power. He further asserted that allocations for pension, public assistance, and school grants will be inadequate. Furthermore, Norton questioned the reason for people not experiencing noticeable improvements in their living standards despite higher oil production and government withdrawals from the National Resource Fund (NRF).
The Opposition Leader then called for a range of measures to be announced in the budget. These include the distribution of a cost of living allowance for all workers, an increase in the income tax threshold from $85,000 to $150,000, a reduction in VAT, the elimination of VAT on all
locally manufactured food items, rationalization of electricity and water rates, a minimum wage increase of at least 50%, the removal of personal income tax for low-wage earners, a generous risk allowance for frontline workers, and the assurance of a minimum livable income for all households. He however expressed the belief that these measures will not be addressed.
When asked on the amount of VAT reduction the opposition would suggest, Norton said by a minimum of two percent. He
further expressed his belief that all households should be afforded a Cost of Living Assistance as well as cash grants, in a structured way.
“We are not in opposition to cash grants. We’re in opposition to the fact that it is unstructured. It is inadequate. And it is not done in a way that there cannot be the requisite accountability. People moving around in a truck or a bus with money and doling it out cannot be the way a government operates,” he asserted. His Economic Advisor, Elson Lowe, who was also at the press conference, suggested that the minimum livable income for all households be $300,000 per month.
With regards to the opposition’s role during the Budget Debate, Norton promised that they intend to not only identify flaws in the 2024 budget but also present an alternative vision and development plan for Guyana during the Budget Debate.
“Our vision is based on a different way of thinking about Guyana and its people. As we have repeatedly declared, our people-centred vision puts people first because (i) we see it as the moral obligation of any serious government to raise the quality of life of all citizens. In fact, it is the fundamental reason why a government exists, (ii) we see it as respecting and honoring the people’s human and constitutional rights to a good life, and (iii) we see it as good economic policy, as direct investments in people’s well-being can further energize and boost the economy,” he noted.
Norton said that in the upcoming debate, the opposition will make a strong case for their genuine concern for the wellbeing of Guyanese and their families. He added that they will vehemently reject the idea of a divided Guyana, where PPP members receive preferential treatment. Their objective is to demonstrate their commitment to equality and the prosperity of all.
When asked, Norton express dissatisfaction with the government’s implementation of the 2023 Budget, which he referred to as “poor”. On this note, he made reference to the various incomplete projects that can be seen across the country.
“You just have to drive around the country and see most of the projects that are not completed. If you go to the estimates in the Parliament… the estimates that are produced… if you go to the section of Youth, Sport and Culture, you would see the completion of the track and field… in Region[s] Six and 10… not one has been completed,” he noted