‘Disappointing, antidevelopment and anti-poor’ Budget 2016 - Jagdeo

‘Disappointing, antidevelopment and anti-poor’ Budget 2016 – Jagdeo

Jan 30, 2016 News

By Abena Rockcliffe
The budgetary measures outlined yesterday by Minister of Finance, Winston Jordan, are not in the best

Opposition Leader, Bharrat Jagdeo

interest of Guyana. They are not going to result in restored confidence in the government; they will not stimulate growth and will certainly not generate any real benefits for the poor, said Opposition Leader, Bharrat Jagdeo.
Jagdeo said that there is disconnection the budget objective and the policies and measures in place that are suppose to realize those objectives.
Jagdeo said that he and colleagues arrived at a consensus that the Budget is “antidevelopment and anti-poor.”
The former President said that there was not a single measure outlined that will result in the enhancement of productivity.
Jagdeo said that Minister Jordan basically ignored the rice industry while falling back on a promise the government made to the sugar industry.
Jagdeo recalled, “The Prime Minister, in New York, told the people that his government will be giving $12B to the sugar industry.” Pointing out that the GuySuCo COI report had also recommended that GuySuCo will need at least $12B to cope, Jagdeo said that it is a real disappointment that only $9B dollars was allocated.
The former President said that there was little budgetary measure to assist the mining industry. “He (Jordan) spoke about increased production and about the two new gold mines that came into being. But both of them were projects developed under the PPP.”
Further, Jagdeo said that there was nothing highlighted for construction or manufacturing and very little was said about plan for tourism. Almost jokingly, Jagdeo said, “This government’s big idea, its primary tool to attract more visitors is the cleanup campaign; that is supposed to be a big attraction.”
The opposition leader said that the only thing the government pointed out to promote its much touted “green economy” was a $40M allocation for a building to house Environmental Protection Agency.
Nothing for the poor
Jagdeo told the media that the measures outlined in the budget reflect nothing for the poor.
He said that the pension was improved by “just $1,200, a tiny sum.” Jagdeo looked passed the fact that this “tiny sum” came just five months after the last increase was given.
However, he noted that the Finance Minister added last year’s pension increase to this year’s pension increase in order to reflect an increase of 29 per cent.
Jagdeo said that the increase cannot compensate for the loss of subsidies that pensioners suffered when the new administration cut all the subsidies for utilities.
The opposition said that there was no increase in wages and salary and “a slight rise in threshold that will make no difference. There is really nothing for the poor.”
Jagdeo claims that there is great deal of “special interest” that was paid to certain areas, to benefit “certain people.”
He pointed to the policy to promote new car imports and said, “That will benefit a few dealers, not the ordinary man.”
Jagdeo then said, “The good life cannot start with this budget.”
The politician stressed, “It will not help poor people. It will bring greater hardship. When you ban used tires you are affecting those people that sell used tires as well as those who cannot afford used tires.”
The former president said that he anticipates that the Private Sector will further lose confidence in the government, “I also anticipate a greater degree of capital flight. We will lose investments. This budget cannot stimulate investment.”
Better off if…
Despite the fact that he said that there has been an excessive amount of “repackaging,” meaning that the government copied many projects that were the brainchild of the PPP government, Jagdeo said that the government would have been better off if it had had meaningful consultation with the PPP.
“They would have been better off if they had a serious discussion with us and followed our plans to policy… they could have run a larger fiscal deficit.”
Jagdeo laughed at the fact that many of the projects that the government had opposed while in opposition are now being implemented. He pointed to the Specialty Hospital, the airport expansion project, the hinterland road project and the hinterland airstrip project.
He said that the only good things in the budget are those that reflect what PPP had already started. He said that the government is now looking to “reassess Amaila.”
Jagdeo also said that the government erred in not focusing enough on the sectors that generate wealth.