RIGHT FOR THE CLIMATE

Aug 14, 2015 Editorial, Features / Columnists

Except for the opposition PPP, the vast majority of Guyanese believe that this is perhaps the best budget in the last decade or more. While this is true, the Budget Speech is simply a statement on the state of the economy but at the same time, it is also a political statement by the government as to the future direction of the country.
The Finance Minister Jordan has tried his best, even in these worst of times, to paint the brightest picture possible. However, concerning the budget or any other issue, the role of the media is not to convey what the Government says as gospel, but to engage in a search for the truth in the public interest.
Likewise, as part of the democratic process, the Opposition, in its response is allowed to offer a different perspective on the budget. If there is one thing that is known between governments and oppositions worldwide, it is disagreement. This is the norm and Guyana is no exception. When all is said and done, the Budget is nothing more than the present Government’s perspective on the current state of economy and by extension the country.
Guyanese like other human beings tend, by nature, to take interest in what they perceived to be relevant to their needs and obviously this budget is. Comparing the public attitudes towards the 2015 budget to previous budgets, it can be said that the people view the current budget as a possible vehicle to advance their interests and those of the country.
The relevance of this budget to their needs is reflected in the significant increases in salaries/wages for the working class, old age pensioners and the noteworthy subventions to improve services in the public schools and the public hospitals, and to expand and upkeep public infrastructure, to name a few – hence the apparent enthusiasm of the people. There is widespread optimism and support for the budget and despite some negative comments by the leader of the opposition, it is seen as a pro-working class budget.
It is this positive perception from the people that convinced the Finance Minister to assert that the economy will improve and life will get better for all, especially the poor. His budget presentation detailed primarily successes at the macroeconomic level of the economy as a whole. It spoke to the resumption of economic growth and development, the stabilization of the public finances, improvements in the foreign reserves and above all, good and transparent governance. It addressed the government’s attempt to not only increase salaries/wages or provide subventions to the various departments and state agencies but also to put its financial house in order by reducing the debt.
In doing so, however, the Finance Minister did not burden the average citizen and businesses with additional tax increases.
While it is good news that the Government has succeeded in restoring macroeconomic stability, what ultimately will matter is how the budget will impact individuals, households and firms in both the short and long term period in these trying times. If anything, the no-new tax measures will increase disposable incomes and hence the economy. What the Government seems to be banking on is that the more disposable income available to the people, the more they are likely to spend and this will lead to an increase in economic activity. Also, the pending start-up of various projects will deliver benefits at the micro level.
With all that said, it was very encouraging to hear the Minister of Finance duly acknowledge the gravity of the debt problem which is a formidable challenge. It is estimated to be at a dangerously high level of 72 per cent of gross domestic product (GDP). This demands serious attention.
Overall the budget can be deemed appropriate for the existing climate.