Dear Editor,
I like some things in the 2021 budget. There is much to cheer in it, and I applaud the PPP government for the positives, some of which were expected.
The everyday basics that just about all Guyanese consume will now be a bit easier in the pocket, a little more within reach. Guyanese are rice-eaters and bread biters, and in some form or the other, wheat and wheaten products enjoy national appeal. Lower water bills help to chase down the bread; thanks. That zero VAT could make a difference between one bag of tennis roll or two, one pack of noodles, or another. Those mean something to me, and I am serious. The Old Age Pension increase was a bit of a bummer, as I think that recipients expected another nudge. What the minister responsible for finance placed before the elderly is what it already known, is already being received, and what was already announced in last year’s mini budget. So, to tout it as an increase is ancient history presented as 2021 PPP generosity. An itty-bitty $3-5,000 increase in this big budget would have been nice; a lot of pensioners were expecting it.
The proposed $15,000 per child assistance is a helping hand in the right direction, and to the right people. But what about the other people, Mr. Minister? More than a few parents – some of them single heads of households, want the best for their children, and sacrifice to make that possible by scraping to send them to private schools. I think the minister and the PPP were a little mean spirited on that one, which locks out those not in the public school system from being eligible. Though it is a shade sharp on my part, I still say it: have a heart, sir! Oh! another thing, let’s scrap that qualifying word ‘proposed’ put before ‘budget’ and move along. This thing is over and done. Sealed and secure, given parliamentary numbers.
Also, I read of relief for the private sector in several areas, which I think is positive and worth a word of appreciation, though I have no business of any kind myself. As I consider all this, which I think is largely citizen friendly, I commend planners, budget preparers, and decision-makers; they did well. I award a B for effort, especially during an extended period of COVID-19 stagnation and pain. Some of this could go a long way. No new taxes is good; less taxes better still.
Editor, taking all of this in consideration, with spending in numerous fields, I am perplexed on how inflation can be calculated and estimated to be at 1.6%, and that is considering reductions in VAT, and so forth. When there is the expectation of heavy infusions of foreign money and foreign spending (way more) in this country, that inflation figure appears a tad tame. Further, I read that the economy is projected to grow at 20.9%, which I believe is possible if all cylinders are firing, if the pandemic cooperates and does a retreat, and if Exxon does not blow us up. I think that the opposition can be counted upon to do its part, since it is as contented as a pig in swill; political stability assured, since the politicians are happy with their own budgets, especially the revenue side.
And now, for the rest of the best. Oil revenues are slated to rake in (perhaps I should use a less sweeping verb) US$1M, which in my miniscule mathematical mind is only GY$220, or thereabouts. On the other hand, the budget that was rightly and proudly unveiled rounds off at just under US$2B. I spell that out: two billion American dollars. I am running into some severe subtraction and reconciliation difficulty here. That is, an enormous shortfall, deficit, gap, or call it whatever pleases. It is no mystery about how and from where that is going to be filled. Though I shudder, I must be brave and bell the barracuda: borrowing. If we continue at this rate, that ‘B’ word is going to be a dirty word here.
As I commend the minister, I respectfully leave this one for His Excellency, the president: being a pawn or a puppet does not only involve military bases only. There is something called debtors enslavement. Just ask those with intolerable mortgages. And look at those Third World countries and leaders that carried on like drunken sailors and splurging pork-knockers. The 2021 budget blast can quickly transform to budget blues, where this society would be condemned to dealing with financial pawnbrokers.
Sincerely,
GHK Lall