Why truth and politics cannot go together? (Pt 2)

Dear Editor,

So let us peel this statement on the Central Government Financial Operations to expose the “nitty gritty” of the three-card con game being played by Guyana’s newly moulded executive artist.  In 2017, the non-financial public sector is expected to record a deficit of $42.6 billion (5.6 per cent of GDP) in 2017 vs $30.4 billion (4.3 per cent of GDP) in 2016.  This translates into a new need for cash of some $12.2 billion in 2017.   

So while there will be a decrease in some taxes like income tax because of the increase in the tax threshold, there is a rapid expansion in VAT by almost G$10 billion because of the new punitive tax on electricity and water which will affect the poor and the working class the most and will also make many Guyanese businesses more uncompetitive.  Then there will be an expansion of the so-called fuel tax (Excise Tax) by another G$5 billion.  The Environmental Levy is back which is expected to rake in another G$1 billion and the taxes on the small man in the form of miscellaneous taxes like penalties on the “horse-cart man” and such people are expected to rake in an additional G$300 million.  So this budget is nothing else but “financial murderation” of the small man.

Why all this financial pressure? So that the new political FAT CATS can spend US$500 a night at boutique hotels when they visit overseas as if they are some African dictator? Check the 2017 Budget carefully, there is enough evidence to expose an executive travel budget of some G$1 billion for 2017.

It is clear that these greedy politicians do not care if they have to borrow more to feed their gluttonous desires because the Minister clearly outlined that he is prepared to pay some G$1.5 billion more in interest payment for the national debts in 2017 compared to 2016. There is no end to this financial insanity. The growth rate is plummeting, but we are paying more interest on the debt and we continue to borrow more and more to what end?  Economic bankruptcy?

But I question the depth of economic knowledge of President Granger since even Burnham would not have allowed such a budget to fly. Why is he not seeking more advice from his economic advisor Dr Clive Thomas?  Look, I have challenged Clive on his work on GuySuCo because clearly he is not a businessman or a business strategist, but if there was any job Clive was born for, it was to be an Economic Presidential Advisor. He is a very talented economist who is a million times more skilled than the Minister in structuring an economy.  So why is his mind not being tapped more on the economic front by the President?

It was Christopher Ram who skilfully advised us that Dr Ashni Singh should structure a budget of around G$175 billion in 2013. Ram was correct then. Since then, nothing significant has happened in the Guyanese economy to cause any Minister of Finance to want to bolt on G$75 billion in additional expenditures without a clear roadmap of how we can create rapid economic growth.

So it is either the Minister is playing politics with the economy or is guessing his way through this entire process. Both of these options will result in Guyana rapidly advancing to a state of economic bankruptcy.

Some commentators will say to me “same old PNC” but I continue to reject that comment.  I still think that Carl Greenidge would have been a greater asset to the Granger administration as the Minister of Finance. He has the experience at conceiving pro-growth economic models as we saw in 1990-1992. So the PNC does have talent in its ranks just like the PPP.  But this PNC talent is being stifled because of human insecurities and petty small men with small minds who continue to put self first, instead of Guyana.

Unless we change course and personnel at the very top in the Ministry of Finance, the small man must baton down himself for tough times ahead as the clueless continue to be given the baton to lead on the economic front.

Regards,

Sasenarine Singh