Dear Editor,
This 2017 Budget has caused me to reflect on an idea that I have always toyed with all my adult life – why truth and politics cannot go together? I have just read an excellent academic piece called “The Political Economy of Public Policy in contemporary India” which strengthens my resolve that you actually can bring the two together. Only politicians who have a shallow commitment to politics need to resort to falsehood, subterfuge, and deception. If your commitment to people and politics is deep, the truth is your best armour.
What has happened this week in Guyana? Where should the people stand on this “SCUD-GET 2017” (yes a scud missile aimed at the poor and the working class)? What is the medium range projection for the poor and the working class? What impact will this have on the 2020 elections? I apologise if I may not answer all these questions today because of space constraints but I will follow up with a subsequent dispatch to the media.
What has happened this week in Guyana?
Winston Jordan has unveiled a G0 billion Budget aimed at “building a diversified green economy”. But what he has really forgotten is how to protect the existing economy to generate the resources that can feed and fund the diversification process. Instead, he is using the model of taxing and borrowing more, to spend more. But the operative question is who is being taxed more and why? The answer remains – the poor and the working class and the business class are being asked to pay more into the treasury by way of these VAT charges on electricity so that the political “Fat Cats” in the Granger administration can spend more. This entire game plan is all about the bigger pensions, bigger perks and the future mansions for the new political “Fat cats”. Hammie is the latest beneficiary of this scheme.
One of the principal documents within any budget is the Statement on the Central Government Financial Operations. This statement confirms how the Government intends to fulfil its mandate over a year through its financial activities. It basically gives you a summary of the total expected cash inflow into the treasury vs total expected cash outflow. Any householder can connect with this document since it reconciles to the same realities of every family – what they earn vs what they spend.
If it is in deficit, it basically means that the Government is spending more than it earns and irrespective of how respective ministers attempt to window-dress this number, a deficit is a deficit. When there is a deficit, it clearly means that the Government will be borrowing more money in the name of the newborn children of Guyana or taxing the people more in order to satisfy these increased spending. This is exactly what Jordan has done in 2017.
Irrespective of how we twist it and turn it, the people are being taxed more so that the Granger Administration can spend more.
Regards,
Sasenarine Singh
