Budget 2023: Making of modern Guyana is well underway – Private Sector bodies

…Govt’s plans are people-centred, pro-developmental

The massive $781.9 billion National Budget presented by Finance Minister, Dr Ashni Singh on Monday evening is being lauded by Guyana’s private sector for its vision of a modern Guyana that will move the country one step closer to future targets for important industries.
The Georgetown Chamber of Commerce and Industry (GCCI) commended the PPP/C Government for their rapid achievement of the transformation that has occurred in Guyana during 2022.
Figures show that the country’s economy saw a growth rate of 62.3 per cent and the traditional non-oil sector grew by 11.5 per cent. As such, the Chamber further applauded the government for its responsiveness in undertaking several mega projects in keeping with this growth trajectory, while maintaining diverse and competitive sectors.

A statement from the GCCI shared, “Undeniably, the making of modern Guyana is well underway with the nation’s overall GDP projected to grow by 25.1 per cent, while non-oil real GDP is projected to grow by 7.9 per cent in 2023. In light of this projected growth, GCCI supports the key measures taken by the Government to increase disposable income, ease the cost of living and support the vulnerable through numerous initiatives which include but are not limited to; salary adjustments, increasing the income tax threshold, containing the cost of fuel, reduction in freight charges and the reduced duty on the importation of new motor vehicles.”
Moreover, the GCCI also commended the Government for prioritising support for small businesses, youth employment, agriculture and food security, transformative infrastructure, and education. The Chamber also called on the Government to work with small and medium miners in 2023 as they continue to project positive economic growth in the mining and quarrying sectors.

“GCCI remains supportive of the Government of the day and continues to act as a partner in nation-building as we seek to improve the prosperity of Guyana. We anticipate the nation’s continued advancement for the benefit of all Guyanese.”

People-centred
Meanwhile, the Private Sector Commission (PSC) recognised that the architecture of Budget 2023 is well-balanced and caters to the needs of all sectors, which is essential in fostering continuous growth and development of the economy, and improving the quality of the lives of every Guyanese.
It regarded the annual fiscal framework as not a financial modus operandi but rather an analytical, rational, and logical approach to economic governance. Budget 2023 has been labelled people-centred, from measures aimed at improving peoples’ net salary and addressing the cost-of-living rise, such as the increase in the income tax threshold from $75,000 to $85,000 monthly; maintaining zero excise taxes on fuel to absorb the impact of volatile fuel prices and the reduction in freight charges.
“The policies proposed in Budget 2023 will have far-reaching positive impacts and implications for every citizen. It is truly a people-centred and private-sector incentive-driven budget fit for the purpose of growing and developing our economy,” the Commission penned.
It stated that increased spending in the housing sector will translate to more lands & housing being available to the populace; this coupled with an increase in the low-income mortgage ceiling from $15 million to $20 million makes for an exciting future in this sector.
The provision of digital solutions to ease public interaction with public institutions will also bring much relief to businesses and the citizenry and reduce inefficiencies in public agencies.

Pro-development
On the other hand, the Guyana Manufacturing and Services Association (GMSA) revealed that proposed fiscal and other related measures aimed at striking a balance between Guyana’s current and future needs are to be lauded as progressive and visionary in harnessing Guyana’s true potential to attain unprecedented growth.

“The GMSA is pleased with the Government’s strategic measures that forecast diversified economic activities while grappling with concurrent challenges that continue to threaten global economic stability. A Government that effectively harnesses the resources of the country to gain adequate revenues for sustainable growth and development must be commended.”
The Association acknowledged that the utilisation of revenues from the first carbon credit sale in the amount of $31.3 billion, in conjunction with the transfer of Guyana’s oil profits in the amount of $208.9 billion from the Natural Resource Fund (NRF), without imposing new taxes is evidence that Budget 2023 is “people-centred and pro-developmental”.
GMSA shared that a transformational budget requires that the Government play a concerted role in the investment and rehabilitation of key private-sector industries. The GMSA attested that the Government’s inclusion of the Association’s recommendations which were submitted at a stakeholder consultation last year assured of the intention to work collaboratively with the private sector.
In the sector, Government has allocated $2 billion for agri-development which includes the establishment of a regional food hub with cold storage, manufacturing, and processing capabilities. Some $300 million was set aside for rice development; $150 million in soya bean cultivation with the construction of a wharf in the Tacama area; new facilities in Crabwood Creek and Orealla as well as new cold storage in Bartica; and two new refrigerated trucks to support the transportation of agro-products. Another $584.2 million was allocated to small business support.
The Ali-led Government has removed 14 per cent VAT with respect to the sale of residential properties, which will also further reduce the cost of homeownership; announced $1.5 billion for the construction of a new laboratory for the Guyana National Bureau of Standards (GNBS); and $43.3 billion to facilitate the construction of the integrated natural gas liquids plant and the 300 MW combined cycle gas turbine power plant within the Wales Development Zone and associated facilities.
The project will directly cut emissions by 70 per cent as well as trigger a series of major economic development initiatives in Guyana as energy costs.
“The measures represent the move towards Guyana building on the trajectory which the Government is placing on the transformation of our economy. Though these efforts signal the thrust, which is needed to drive our economy, the GMSA is still hopeful for other additional measures to be extended to benefit the manufacturing sector. The direct reduction in the cost of electricity, as well as a reduction and removal of taxes on support services to manufacturing, will greatly impact the sector, drive productivity and increase the GDP of our economy,” it added.