DECEITFUL!

Dec 06, 2016 Editorial, Features / Columnists

It seems that the gloves will be off over the budget debate now that it has begun. In the last week, the administration felt the wrath of the people, the opposition and some interest groups. But that is to be expected because no budget in Guyana or elsewhere has ever pleased all the people. Many felt that the budget is very complicated and gives no direction of how to grow the economy which is in a slump, create jobs, reduce poverty and improve the lives of the people. Others believe that it is a “give and take budget,” but the government took more that it gave to the people.
However, some have relished the incentives to promote a green economy, encourage investments in agriculture and the manufacturing sectors. They have also lauded the exemptions of customs duties and taxes on machinery and equipment for electric vehicles, on hybrid vehicles, on parts for greenhouses and for increasing the tax threshold from $55,000 to $60,000.
It is the third budget presented by the government in 18 months and is the largest in the history of the nation.
Despite the sentiments for and against the budget, it is important to note that a budget is an itemized summary of likely income and expenses for a given period. Budgets are presented annually and they are important instruments of governments in order to ensure that the country has the resources needed to execute their plans for the fiscal year.
That said, one of the most positive aspects of the budget is the lowering of the Value Added Tax (VAT) from 16 percent to 14 percent. It is a huge saving for many. But as reported, the imposition of 14 percent VAT on the consumption of water and electricity above a certain level is not sitting well with the majority of people. It is estimated that a large section of the population will be burdened with such tax.
The PPP has claimed that it is a regressive budget that would stifle the economy, retard production and smother the GDP growth rate which is at a dismal 2.6 percent. It has called on the government to withdraw the budget or it would tear it to pieces during the debate in Parliament.
Many have questioned the wisdom of the Cabinet for allowing the 14 percent VAT on water and electricity.
Others have said that the only thing left for the government to tax is the air they breathe. Some have even claimed that the government which has been in office for only 18 months have become self-destructive.
It appears that the PPP is winning the public debate on the budget in light of Mr. Jagdeo’s tour on Regent Street where he met with many individuals and some store owners. Instead of fanning out across the country to discuss the proposals in the budget, the Cabinet members have locked themselves behind closed doors and are content with making public statements.
Since taking office, the government has done a lot of good things but its failure to communicate with the public makes it look as though they have done absolutely nothing other than drawing a fat pay check. This could result in its downfall.
Lest the people forget, the PPP was in power for 23 years, and during the last 15 years, it passed some of the most horrible budgets with the single objective of making the poor, poorer and the rich, richer. It did the opposite of Robin Hood in that it took from the poor and gave to the rich instead of the other way around.
Since becoming the opposition, some in the PPP including its leader have been behaving as if they have been canonized. Their criticisms of the budget and their angel-like behaviour are deceitful and hypocritical, to say the least.