A VISIONARY BUDGET NEEDED

Oct 16, 2016 Editorial, Features / Columnists

The passage of the last Budget in Parliament halted the trend of irrational spending. Now the people are hoping that the 2017 budget expected on December 5 will resuscitate the economy, create jobs, reduce the national debt and improve their lives.
They are optimistic that the Minister of Finance will bring forth a budget with a vision that will chart a new course for the country and hopefully lead the nation to better economic times.
The economy is struggling and the major challenge of the government and the private sector is to get it back on the right track. A high level of public confidence in the government is needed to grow the economy. In this regard, Budget 2017 should address the needs of the people and improve the economy. It should focus on diversifying the economy by establishing a robust financial services sector.
Export income and investment are on a steadily downward trend while import costs and borrowing. But then again, the view is that more government spending will push the economy.
There has not been any serious policy articulated by the government to diversify the economy. Initiatives aimed at expanding the agricultural sector are few. Ecotourism and mining are the two sectors routinely suggested. The country has been attracting investment with most going in the oil exploration sector in recent times.
Yet as we call for a boost to the economy we must realise that the country is facing a shortfall in revenue due to lower prices for its commodities, including bauxite, rice and sugar. This is why more emphasis should be placed on diversifying the economy. The government should lower the tax rate to attract not just local investors, but also foreign investors.
The Minister of Finance should have the necessary foresight and imagination to present a budget with a vision that will address these issues so that all can share in the country’s resources and development plans. If the budget falls short of the expectations of the people, many, especially the poor and the lower working class will continue to suffer.
The country’s present economic and financial circumstances require a clever approach that should incorporate the ideas of most if not all stakeholders in a significant way.
Having an all-inclusive vision to develop the economy is perhaps one of the best ways to inspire trust and confidence of the people and move the country forward. During the election, the APNU+AFC coalition assured the people that if elected to office, it would develop the economy, create jobs, reduce the national debt and provide a better life for all. This was the vision that it is still offering to the people.
The government has been forced to take pivotal steps to stabilise the economy and reduce the nation’s import food bill. Further, the $12 billion annual subsidy to the sugar industry has taken its toll on the country’s economy. While the message of not having as much as before is echoed loud and clear, the people need to know when the subsidy will end.
The consensus is that the country needs an effective budget with benefits for every segment of the population. It must provide the means to develop the economy, reduce the national debt, create jobs and help the poor who are the most vulnerable in society. Additionally, the budget must have specific allocations for youth development and empowerment.

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