President says Budget 2017 “rounded”

Despite mounting criticisms on certain measures adopted by the coalition Government in its 2017 Budget, President David Granger is of the view that the financial plan for the coming year is well rounded and is a step closer for his administration to achieve its objectives,  one of which is to provide a ‘good life’ for all Guyanese.
During the taping of this week’s televised programme – The Public Interest – the Head of State posited that the Budget is a courageous fiscal plan that will bring change and move the country forward. He noted that cognizant of the resources available, Government proposed a plan that will be a vehicle to achieve its objectives.
“I believe Guyana has to be prepared for change and this budget is a budget that is going to bring about change. For that reason, I think the population should look critically at the whole budget, not just bits and pieces, and ask if this is a vehicle that can move the country forward to that good life, that better life we promised and I think it is,” he asserted.
According to the Guyanese Leader, the 2017 financial plan covers the various sectors and also provides for the various needs of citizens in the coming year. He noted that it caters for economic change, social protection and even greater security with regards to citizens being able to live in peace and safety from criminal attacks.
“In general, it promises Guyanese that we will move the country forward towards a ‘Green State’. It will introduce certain regulatory changes which will make businesses and individuals more compliant with the law; it will be able to develop the infrastructure of our country and it will improve the social services which are delivered to the public in terms of education, health and social protection. So I think it’s a rounded budget,” the President stressed.

Anxiety over VAT
While the coalition administration is generally upbeat about the 2017 Budget Estimates and is vigorously defending the fiscal plan currently in the National Assembly during the debates, there continues to be anxiety among citizens over the highly controversial Value Added Tax (VAT) imposed on utility services such as water and electricity.
Commenting on this, President Granger explained that the purpose of taxation is to generate revenues to run the country and provide key services for the population. However, he pointed out that the imposition of VAT on these services is a means not just to earn revenue but also to curtail wastage of key resources.

“In the case of water and electricity, it is not punitive but curative in the sense that persons who waste water would now be careful in the use of water. It is not a tax on water but a tax on the excess use of water so I think we have to interpret the measures in terms of the policies which the Government intends to achieve or implement. It’s not taxes for the sake of taxes but to modify public behaviour,” he outlined.
Further asked whether he considers a bill over $1500 excess use of water, the President said he considers it “average”, especially given the fact that VAT has been reduced by his Administration, as promised, from 16 per cent to 14 per cent. He posited too that majority of the low income households would not be affected by this since they do not use an amount of water that would cause them to be taxed with VAT.
Moreover, the Guyanese Leader was questioned by reporters during the taping of the state-sponsored programme on Thursday, whether his Administration would be inclined to change any of the policies in the budget that has not gone down favourably with the public.
In response, President Granger stated that his Government has not been sufficiently persuaded that any of its measures are unlikely to achieve the objectives which it has set.
Nevertheless, he maintained that Government is looking at the debates and the commentaries in the media, which will be considered during the implementation of its plans and projects.
“I would say that we have listened to the debates, and in terms of implementation when the measures have to be implemented, we would bear in mind the comments and criticisms which were made. We don’t want to do anything that is harmful and hurtful to the general public but so far we have not seen any evidence that the measures that have been recommended are unlikely to do anything but help the Government or country to move forward,” he remarked.