… to finance agriculture, fisheries, forestry projects
The Guyana Government has said it has several billion dollars worth of projects in the pipeline that would be funded with the help of its international donor partners, even as tax remissions to the local business community plunges significantly.
This information is contained in the recently released financial mid-year report on the national accounts. The report was presented by Finance Minister Winston Jordan to the National Assembly shortly before it went into recess.
Minister Jordan in his report that has since been made public, said Government continues to actively work with donor partners to develop and effect investment programmes in key areas: “The potential projects in the pipeline for agriculture, fisheries and forestry are valued at a total of US$40.45 million (G$8 billion).”
He also highlighted areas of trade, industry and business development, public infrastructure, and energy.
“It is anticipated that several of these projects will be presented to the executive boards of their respective donors during the second half of the year,” he said.
Among the developmental partners that Minister Jordan referred to are; India, China, Germany, the United Kingdom, the European Union, the World Bank, the Inter-American Development Bank and the Caribbean Development Bank.
Among the projects highlighted is the construction of the Del Conte road – Parika to Goshen – with the help of the Chinese.
The EU has been approached, according to Jordan, for €30 million to support the effective implementation of the new 2015 policy, including harmonising the legal framework, developing updated disaster risk management (DRM) policies and enhancing coordination of agencies as part of the promotion of disaster risk management practices through an Integrated Coastal Zone Management (ICZM) approach in line with the approved 2015 Sea and River Defence Policy and Strategy.
The report also documents that the Government of India has already approved an US$8 million grant, meant to augment an earlier US$10 million loan for the purchase of a ferry vessel to ply the Parika to Port Kaituma route.
Other projects identified for international support by donor partners includes US$14 million being sought to support the Ministry of Education with its Education Sector Improvement Project.
The Ministry of Public Health is also looking to secure US$14 million from India to assist with modernising three existing hospitals, namely Suddie, West Demerara and Bartica, “by transforming them into state-of-the-art centres of excellence.”
The Government of Guyana submitted project profiles and preliminary floor plans to the Government of India for consideration and is currently awaiting feedback from the Government of India, according to Minister Jordan.
Several other loans and grants are also actively being pursued by government in order to address areas of Governance and Public Administration, Community, Human and Social Development.
Tax remissions decline
Meanwhile, even as Government actively pursues international assistances, tax remissions afforded to the local business community have been on the decline.
The Mid-year report documents that the Guyana Government withheld from the business community almost $6 billion in tax remission for the first six months of this year; and the decline is said to be directly due to Government’s review of concessions to sectors, businesses, and individuals, in order to ensure concessions are in line with the country’s development agenda.
According to the report, tax remissions for January to June 2016 were recorded at $20.7 billion – equivalent to 27.5 per cent of tax collections.
This compares to $26.4 billion representing 37.3 per cent of tax collections for the same period in 2015.
The main categories of reduction in remissions were companies/businesses at $5.5 billion; Ministries and Departments of Government, $430.6 million; and foreign projects, $197.4 million. It was noted however that remissions to diplomats increased by $329.5 million, public officials/officers by $85.1 million, hospitals by $65.9 million, and remigrants, $18.6 million.
