Budget 2013 fails to ease woes of past and present public servants

Apr 29, 2013 News

– GPSU

The Guyana Public Service Union (GPSU) is unimpressed with the provisions made in the recently announced budget, despite charging that some measures applied in a “minuscule manner” by the Honorable Minister of Finance Ashni Singh had its genesis in recommendations made by the Union.
Head of the public sector union Patrick Yarde said they advocated for a minimum increase of 50 percent in all pensions payable by the State and that the National Insurance Scheme (NIS) be encouraged to do likewise.
However, in the 2013 budget, Yarde said the, “Government proposes a hike in only old age pensions by a miserly $2,500, while ignoring other pensions that are currently paid to persons, who serviced the state but are condemned to abject poverty while in retirement because of inflation and other factors”
Yarde said that one would think that Government’s stated concern for the wellbeing of all citizens would motivate it to make more realistic and generous provisions to sustain its dwindling population base, including the unfortunates that gave their all to the sustainability of state-run institutions.
The union head said suggestions were made for tax reform in Guyana to reduce the level of taxation being borne by salaried workers, while widening the tax net by including measures to make tax evaders more compliant. The GPSU proposal included the increasing of the tax threshold to $100,000 and the reduction of the income tax rate to 20 percent on taxable income. The Government’s response however, he charged, was to propose a miserly 2.33 percent reduction, which is the net effect of a token Pay As You Earn (PAYE) decrease of 3.33 percent and an increase of the NIS rate by 1 percent.
“This in effect has no effect on the salaries and wages of the majority of public servants, whose salaries are pegged below the $50,000 tax threshold and offers a paltry relief to the remainder.
The recommendation by the Finance Minister for increasing the property tax ceiling is commendable,” Yarde admitted.
“Even though this would not benefit the majority of salaried workers and mortgage payments for first time home owners to be exempted from tax.”
Yarde continued that, “The Minister proposed that only the interest on mortgage payments for this group be tax deductable, and even though this could be considered a step in the right direction, it is insufficient to motivate low and middle income earners to invest in their own homes.”
“GPSU is therefore of the view”, Yarde said, “That the failure of the Government to fully implement the recommended measures, which at minimum would ease some woes of Public Servants (past and present), other employed poor and elderly unemployed, is nothing less than a charade, where our citizenry are used as “pawns” to further special interest ties and is insensitive and uncaring to the plight of the masses.”
“A few tidbits are dangled at the people of Guyana, clearly with a motive,” Yarde opined. “During the last elections and many previously, much was promised, by both Government and Opposition, in terms of bettering the livelihood of the masses. Today, after significant lapses of time and broken promises, much is desired to enable the masses to enjoy the comforts craved during their lifetime, as a selected few benefits in a timeless routine.”
To meaningfully address the current plight of the labour force and other citizens, Yarde said that reform such as a 25 percent salary increase is needed for public servants for 2012 and 2013.
“We continue to insist that remuneration increases be based on factors such as the annual inflation rate and annual growth rate in the economy. It must also take into consideration the inadequacy of salaries and the poverty line.”
Yarde revealed that GPSU proposed a budget allocation of $4.404B for the revision of wages and salaries. “This represents a little over 15% of the projected wages and salaries of $29.130B for Ministries, Departments and Regions. If the intention is to use this amount in accordance with the legal provisions or requirements as stated in the Appropriation Bill, then “across the board” payments of approximately 15 percent could be immediately made to each Public Service worker, should the estimates find approval in the National Assembly.”

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Budget 2013 fails to ease woes of past and present public servants

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