Latest update November 5th, 2024 1:00 AM
Dr. Jagdeo touts ‘pro-poor, pro-private sector’ 2021 budget
– For Parliament on Friday
Vice President, Dr. Bharrat Jagdeo
Kaieteur News – Adding to an announcement made by Finance Minister, Dr. Ashni Singh on Monday, Vice President Dr. Bharrat Jagdeo told reporters yesterday that the 2021 Budget to be presented on Friday is both pro-poor and pro private sector. He said that the budget will promote the diversification of the economy, and build on what the administration started doing in the 2020 emergency budget to reverse the policies of the former David Granger administration which he believes deteriorated the welfare of poor people.
The 2020 US$1.5 billion budget was presented to the National Assembly late in the year following the administration’s assumption of office last August.
During a press conference at the Arthur Chung Convention Centre, Dr. Jagdeo said “We are starting a second budget now less than five months after the last budget was passed and we have to build on those incentives that we gave in the last budget.”
He pointed out the removal of value-added tax from a series of items late last year and other revisions of the Granger administration’s tax policies. He said that last year, because the revisions were made late in the year, the public did not enjoy a full year of the reductions, and that if they were to be annualized, they would be about $40 billion. He expects this to be realized this year.
He also said that the new budget is expected to facilitate easy travel, noting the road link to Bartica the Eccles-Ogle bypass road, and Mandela-Eccles four-lane highway plans which he also said will allow for new housing developments.
Blaming the former administration’s policies for exacerbating declines in the productive sector last year, Jagdeo expects the upcoming budget to revive the production sector.
The budget “will directly support many initiatives, not just in the organised private sector, but also in small business, hoping to incubate new entrepreneur and assisting them directly through Government grants or soft loans,” the VP said.
“We recognise that if we allow the oil sector to dominate our economy,” he explained, “we will suffer the same fate as many oil economies around the world which is the lack of diversification with the Dutch disease killing off every other sector of the economy,” he said.
“There is a philosophy behind all of this,” Jagdeo told reporters. “They all fit together as part of a holistic plan for the development of various sectors and not only for industry but also for ease of travel and settlement patterns.”
On Monday, Finance Minister, Dr. Singh said that to prepare the budget, the government is on an intense campaign of preparation and wide-ranging consultations with private sector and other stakeholders on issues of shared interest.
“We do consultations with stakeholders as an ongoing process. But we received a lot of very good suggestions from those who were gathered.” Dr. Singh said.
He reminded that the President, Dr. Irfaan Ali has been engaged with political party stakeholders as well, for their consideration.
“There again, we received a lot of very valuable suggestions, ideas, proposals, issues put on the table for consideration,” he said.
The Finance Minister committed that the budget 2021 will continue to deliver on the promises and commitments promised in the People’s Progressive Party Civic (PPP/C)’s manifesto.
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