Budget 2023 pushing tax payers’ dollars down a black hole – APNU+AFC

Jan 22, 2023 News

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…says no meaningful measures to impact the cost of living

Kaieteur News – The A Partnership for National Unity (APNU) and Alliance For Change (AFC), though separated, both believe that this year’s Budget is laden with projects that will result in massive abuse to the national coffers.

Opposition Members of Parliament (MPs) who spoke with this newspaper following the presentation of the 2023 Budget by Minister with Responsibility for Finance, Dr. Ashni Singh said there are little measures in the $781.9 million fiscal plan that would ease the brutal impacts from the escalating cost of living.

Shadow Minister of Foreign Affairs, Amanza Walton-Desir in her opening remarks termed the Budget “underwhelming”.

She reasoned that the Government this year has emphasized spending on infrastructure but has neglected its responsibility to show care and compassion. The MP was keen to note that while she is pleased with the increase in ‘Because We Care Grant’ for school children, she is concerned about the lack of meaningful measures to impact the cost of living.

Walton-Desir shared, “It is unimaginable to me that the Finance Minister would announce a $5 billion set aside to determine poverty alleviation measures. That is absurd. We, I think, have to brace ourselves for a very tough year as Guyanese.”

She is adamant that a mere $2,000 increase to the public assistance programme which now moves from $14,000 to $16,000 will hardly have an impact. In addition, Walton-Desir noted that the changes announced to the income tax threshold (from $75,000 to $85,000) is “very underwhelming” in the context of an oil and gas economy.

The MP concluded that this year’s Budget is, “the continuation of measures that support big businesses.” She explained that the reduction in freight costs will only impact a certain section of the population, whereas infrastructure projects too will aid in fattening contractors accounts, while a single mother for example struggles to buy food for her children.

“So what we see again is big business being supported and direct relief to the poor and the working class very absent,” the MP pointed out.

On the AFC’s side, the Leader of the party, Khemraj Ramjattan posited that the fiscal plan is “worrying”. He contended that while the Government is focussed on infrastructure, it seems not to be bothered about making life easier for ordinary Guyanese citizens.

Pensioners, for example, should have received at least $50,000 Ramjattan said from this year’s Budget. Instead, they will now each receive $33,000 – up from $28,000 monthly.

He said, “We also had expected subsidies for especially all the toll arrangements and the bridges and so on would have been clearly been erased with over $209 billion.”

On the other hand, with massive infrastructure development planned, Ramjattan is certain that corruption will take place.

“Knowing so many hundreds of billions of dollars (is to be) spent on infrastructure, especially knowing our procurement processes and all that they have done in the two and a half years thus far, the corruption is going to be massive because they are gonna give their friends and families (contracts) for these construction of whatever roads, schools, hospitals and also for medicines and things like that,” he argued.

Additionally, the Opposition MP highlighted that another $4 billion has been set aside for the operations of the Guyana Sugar Corporation (GuySuCo). This, he said, amounts to another “$4 billion down a black hole”.

The AFC Leader believes that the reduction in Value Added Tax (VAT) should have been across the board, rather than be limited to citizens that will purchase electric vehicles.

Meanwhile, the only Opposition MP who seemed to favour the third Budget presented by the People’s Progressive Party (PPP) Government – or at least not share any negative comments – was Leader of the Liberty and Justice Party (LJP), Lenox Shuman.

Shuman, who also functions as Deputy Speaker of the National Assembly said he was particularly pleased with the allocations in the Budget for Indigenous peoples’ development.

According to him, “I think it shows that Guyana is on a very progressive trajectory and it’s much needed. I think it shows the confidence that the Government also has not only in the economic performance but also in their capacity to deliver…the Budget, if I may say so, is a little bit tempered because I think now the Government has a good measure as to what they can deliver and how they can deliver.”

He added, “I am extremely excited about the funds that are allocated for Indigenous peoples’ development. We have got $500 million to support land titling, $2billion to support food security another $4.7 billion for Indigenous community development. I think those are some very serious commitments that are being monetized in Indigenous communities.”

Additionally, the Opposition MP said he was very pleased with the announcements made for improvements to the agriculture sector and infrastructural development. This, according to him, translates to “something in there for everyone.”

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• A Partnership for National Unity (APNU), Alliance For Change (AFC), Amanza Walton-Desir, Khemraj Ramjattan, Shadow Minister of Foreign Affairs

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