PPP budget reverses draconian measures of former Granger Govt – FITUG

After carefully examining the 2020 National Budget which is being presented by the People’s Progressive Party Government, the Federation of Independent Trade Unions of Guyana (FITUG) has expressed support of its provisions for the people of Guyana, especially the vulnerable groups.
In a press statement on Monday, the organisation said the budget debate provided Guyanese with the opportunity to be cognisant of what is in store for them, and moreover, it delivered a plan that will improve their lives.
Last Wednesday marked the first budget in almost two years. The $330 billion Emergency Budget was presented at the Arthur Chung Conference Centre, providing Guyana with much-needed resources and development plans after the political upheaval of the past year.
“The Federation recognises that the budget is geared to improve the well-being of all Guyanese. Indeed, we see the first budget of the Irfaan Ali Administration starting on a good footing as it reverses many of the draconian measures that were implemented by the former coalition Government,” the missive asserted.
The Federation contended that Guyanese have much to look forward to and be pleased about, with the instantaneous removal of unnecessary taxes, especially on key utility services such as electricity and water along with medicine and healthcare.
It added, “All in all we were heartened to learn that as much as twenty billion dollars will be aggregately put into the pockets of the Guyanese people. This is a massive windfall for our people and one we are sure they desperately need.”
It went on to say that Government was stymied by the billions of dollars that were spent by the former caretaker Administration over the first half of the year. If this was not the case, more initiatives could have been rolled out.
“We recognised too that the new Government was caught between a rock and a hard place with tens of billions spent or committed even prior to its assumption to office. This undoubtedly must have caused the incumbent Administration to temper its basket of goodies it wished to deliver to the Guyanese people. Of course, we believe, the Guyanese people deserve more. Many workers had anticipated an increase in the tax threshold. While we know the Government, undoubtedly, wanted to do and to give more, it had to contend with the bad hand it was dealt.”
According to FITUG, this budget demonstrated how Guyana’s economy was mismanaged during the term of the previous Government. It said the coalition spent over $1.2 trillion during its lifetime which it “collected from the sweat” of the Guyanese people but little to gain.
“It causes us to wonder where our hard-earned monies went and what value did the Guyanese people get. From all indications, large sums were used to fatten the former elites and find jobs for the boys and girls. Significant sums, apparently, were also wastefully utilised as we see the monstrosity of D’Urban Park and the new COVID hospital, where hundreds of millions more had to be earmarked. Apart from the millions, if not billions, went to supportive individuals and enterprises,” the organisation penned.
FITUG recognised that there is a great deal of work to be done but signalled that the Administration has begun on a positive footing. It was dubbed as a pro-poor and pro-people financial outline of Government’s intentions.
“Certainly, careful examination is required as the new Government must untangle the many messes it inherited as it continues in its thrust to deliver development to the people. We believe that the budget has made a concerted effort to touch the life of every Guyanese man, woman and child. This is a welcome effort especially given the heartlessness which prevailed before. It is in this regard that we hold budget 2020 as pro-poor and pro-people.”
In addition, the old-age pension will be increased to $25,000 per month, pensioners will receive free water, with the overall removal of Value Added Tax (VAT) on electricity and water also slated to be announced.
It was announced that VAT would also be removed from all medical supplies, not just those related to treating COVID-19 and its symptoms, or even for personal protective equipment (PPE). VAT will also be removed from hinterland travel and cell phones, as well as building and construction materials. The Government will also be removing corporate tax on private education and healthcare, a measure likely to bring the service costs down.
There are also measures for the productive sectors. VAT has been removed from all exports, as well as machines and equipment. Additionally, duties have been reversed on machines and equipment. President Ali had also announced that tax concessions will be granted for persons operating in the mining, agriculture and forestry sectors.