Budget has positives, still needs some retooling

Jan 18, 2023 Letters

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Dear Editor,

This year’s budget started unexpectedly with the parliamentary site showing that the budget presentation had ended on January 15th at 3:30pm. A sign of things to come or an error that could be easily corrected? With economic development timing is very important. The global economy is slowing, inflation is high and interest rates are skyrocketing. The past budgets were not balanced and excessive spending was driven primarily by borrowing. This year’s budget should be retooled to ensure government receipts balance with expenditures.

The additional funds available in the NRF should be invested to capitalize on the high interest rates, while allowing inflation to fall as supply chain issues are resolved. Not only will this make our development plan more affordable, but it will also allow the Human Resources and internal capabilities of the country to further develop to a level where the economy can efficiently and effectively absorb the increased expected future growth. Our CapEx investments continue to be limited by our internal capabilities.

We must allow time for these capabilities to further be developed and enhanced. Paying down our debts continues to be important and will help ensure favorable future credit worthiness. The local economy is also at risk of overheating and this approach to economic development during this difficult global financial period will allow Guyana to strengthen its long-term position for further development. Having 2023 be a year of focus on electricity, water, drainage and community needs will ensure a strong year of accomplishment that will have a direct impact on our citizens.

The non-oil sector’s growth is promising and should be further encouraged, but we must be in tune with demand and expected price growth. The opportunity with India for the production of millets was timid and should be revisited with a baseline acreage of at least 1000 acres combined with a secured sales agreement. Our country should also no longer overlook the organic farming industry and the opportunity that it offers. Opening markets and ensuring sales should be a high priority alongside our citizens convenience and increasing of productivity within the economy.

Our sugar production has fallen while prices have increased and our rice production yields has increased while prices have fallen. The non-productive sectors that cater to the health and wellbeing of our citizens continue to be a focus in the budget and should be applauded. The education of our children and their safety continues to be a focus of the budget and it is CRG’s hope that the immediate infrastructural needs that are being looked at will include the fire safety needs that have now become clear to our nation. It is unfortunate that those safety needs were not explicitly mentioned during the presentation. The continued development of the University of Guyana in Demerara and Berbice is encouraging and we also look forward to an investment in a strong offering in Essequibo.

Housing growth is also applaudable. However, the opportunity continues to exist for a pre-investment in a sewage system, underground electricity lines, the supporting water system; and having the roads, clinics and police outposts in place prior to lot distribution. This will ensure the avoidance of the current problems we have with electricity, water, road, security and healthcare needs in established communities. We must ensure the correct level of focus is in place for our investments to bring about a stronger and safer economy. This also highlights the current gaps that are in place within the current infrastructure. Let’s make a better effort at improving what we currently have before an aggressive expansion program is pursued. It is in our country’s best interest to secure what we have by completing the improvement of our drainage and sea defense infrastructure. The current proposed budget needs to provide further clarity in this crucial area of our infrastructure.

Overall, the budget was in line with the approach taken during previous years and CRG continues to encourage the government to relook at the opportunities that have presented themselves over the recent past and refocus on what is both urgent and aligned with our long-term needs. For example, focusing  on completing the new Demerara Harbour Bridge may be sufficient for a project of such magnitude for the current project management capabilities available in the country. Given the recent complaints around the judiciary, one would have expected an increased level of investment beyond what has been allocated in this year’s budget. CRG looks forward to the retooling of the current budget proposal.

Best regards,

Mr. Jamil Changlee

Chairman 

The Cooperative Republicans of Guyana 

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• budget, Mr. Jamil Changlee, NRF, parliamentary, retooling

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