The task of preparing Budget 2015 nearly eight months into the year was made even more difficult by the wholesale revamp of Ministries and Departments. Focus has been advocating for years that the Budget be presented and passed before the year begins. The technical team of the Ministry deserves congratulations for their efforts.
Apart from the technical issues, the Minister had to confront several challenges all at once, rice, sugar, gold and flood. It required quite a balancing act on the Minister’s part. That the Budget won praise from organised labour as well as the private sector is a measure of how well he is considered to have succeeded.
But we are far from out of the woods. Indeed, we are not even sure where we are in the woods. The Minister has chosen to take an optimistic view of the Venezuelan market for Guyana’s rice – at least up to November 2015 when the arrangement expires and comes up for review. It is hoped that the millers and exporters will not wait on the Government to find markets but will take the initiative in exploring their own options.
The sugar industry has been surviving only on the thread of subsidies. The Commission of Inquiry looking into the industry has a formidable task in balancing the various social, financial and economic factors that make up the sector.
The Budget was presented as the economy cools and the Minister faced calls for a stimulus package and more concessions. At least in terms of the mining sector, he responded with a package of measures designed to keep the small and medium-sized operators competitive. This will add to the heavy cost of subsidies and concessions already available to businesses. The Minister has announced steps to review the tax system with a view to making recommendations for a more equitable system.
Once the Budget debate is over the task of executing the projects and programmes will fall on inexperienced Ministers, public servants and dysfunctional if not broken institutions. The legacy of the last Administration will be felt for some time to come. The NIS presided over by Dr. Roger Luncheon is in the worst shape than it has ever been.
There are a number of constitutional and statutory bodies which may not be properly constituted and which are operating well below acceptable standards. And for every good day, there is some headline-making crime that saps the confidence of the citizens. The efforts and energy to meet money-laundering deadlines from abroad contrast sharply with the sloth in dealing with the Integrity Commission and the Public Procurement Commission.
The Marriott was partially completed during the year in Kingston and is now wholly-owned by the Government of Guyana. The Minister did not indicate how the Government plans to deal with this. He had sharp words for the Amaila project but interestingly, makes substantial provisions in the Budget for the access roads.
The capital city remains broken, one of the consequences of the failure to have local government elections. No one seems to be able or informed enough to give some assurance on a date when these will be held.
Prior to the Budget presentation, the Government received low marks for economic management. Following the presentation, with the exception of the opposition PPP/C, the Budget has received commendations. No Budget delivers every wish of the citizens of the country and there are always winners and losers.
Having regard to all the challenges facing the economy, the resources at the Minister’s disposal and the fact that a Budget always is a choice from several and often competing objectives, Ram & McRae is in the camp of those who have endorsed this Budget.
