Government plans to reform the tax system and diversify Guyana’s economy from its dependence on primary commodities, Minister of Finance Winston Jordan says.
In his Budget 2015 presentation on Monday, Jordan said that macroeconomic stability is the cornerstone for the achievement and sustainability of a “good life.” He said that as expressed in APNU+AFC’s Manifesto, the David Granger administration will implement macroeconomic policies that promote both external and internal balance.
“In so doing, over the next 5 years, we commit to the maintenance of macroeconomic stability by creating conditions to foster a positive growth trajectory while improving expenditure management and revenue administration, low inflation, stable exchange rate and sustainable debt,” he said.
“This will involve the undertaking of prudent and targeted fiscal policy, in order to reduce the deficit in both the Central Government and Public Enterprises,” the minister said while noting that high deficits can lead to a build-up of the public debt, the repayment of which takes away from spending in critical areas, such as education and health, as well as on key social safety net programmes for the poor.
“As such, our government will reform the tax system to make it more robust, allowing for the reaping of efficiency gains from greater compliance and an expanded tax base. These efficiency gains will restore private sector confidence in our economy and will increase investments while creating sustainable jobs,” Jordan asserted.
“We will also reform the existing industries, manage emerging industries more efficiently, and diversify our economy from its dependence on primary commodities, to record progressively high growth rates,” he said while adding that reformed macroeconomic policies are necessary if government is to make a dent on poverty.
