Taking umbrage at criticisms that the proposed 2022 national budget will not improve the lives of ordinary Guyanese, President Irfaan Ali on Saturday said it was built with the framework of expanding opportunities and enhancing the livelihood of every citizen.
“These opportunities don’t just come or spring out of the earth or rain down upon you. You have to create [an] enabling environment that will bring the benefit directly to the people across our country and this is what budget 2022 does,” Ali said during a virtual briefing that was broadcast on his Facebook page, where highlighted key investments that are planned.
Ali argued that this year’s budget is the “greatest” opportunity for the transformation of the country. “This is what budget 2022 means. Making lives easier, safer, removing burdens, eliminating stress and enhancing the journey of life. Budget 2022 restores all those jobs, expands opportunities and enhance livelihoods… This is how a government takes care of the needs of the people… Budget 2022 gives us the tools in making it happen,” he added.
Senior Minister in the Office of the President with responsibility for Finance Dr Ashni Singh on Wednesday presented the $552.9 billion budget in the National Assembly.
Among the provisions are an increase in the monthly income tax threshold; a lowered tax on pick-ups and trucks; a hike in old age pension, public assistance and cash grants for school children; support for dialysis patients; an increase in the mortgage loan ceiling; incentivizing savings in the banking sector; and reductions in the cost of medical and life insurance.
Significant investments were also outlined in the budget for sugar, agriculture, drainage and irrigation and livestock and crop cultivation.
Although Ali did not single out anyone in particular, he repeatedly referred to critics sitting in air-conditioned offices and accused them of either not having a clue or deliberately ignoring reality.
The opposition People’s National Congress Reform (PNCR), the main constituent of the main opposition coalition APNU+AFC, on Friday said that the budget fails to deliver the needed resources to the poor and vulnerable to improve their lives and livelihoods.
“This budget is unfit for purpose, that purpose being the transformation of the lives of ordinary people. This budget is short on delivering resources and services to the poor and struggling masses. The PPP/C’s 2022 national budget fails to bridge the widening gulf between the legitimate expectations of average Guyanese and their daily lives,” PNCR General Secretary Geeta Chandan-Edmond told a PNCR news conference.
Productive capacity
According to Ali, the budget, which is the first to be funded by the country’s oil revenues, is laying the foundation and establishing the framework through which the development and expansion of the country will take place.
At the same time, he said it details the plans for national prosperity, job creation, expanding the economy and enhancing productive capacity.
“Budget 2022 is not only people-centered but it is geared at addressing our productive capacity of our country and every single sector… Investment in the human resources that would give us the capability and the potential to develop these sector. Unless we enhance our productive sector and productive capacity, we cannot build a strong economy. We cannot talk about local content, we cannot talk about the economy, we cannot talk about making sectors more competitive if we do not enhance the productive capacity,” Ali explained.
Importantly, Ali highlighted that budget 2022 is geared at enhancing the productive sector of the country.
“The productive capacity includes not only the hardcore infrastructure, not only the investment in the sectors but importantly the investment in the human resources that would give us the capability and potential to develop these sectors,” he said.
The president outlined some of the major investments and explained how they will tangibly benefit the people of society.
As it relates to agriculture, he said the government has been speaking about plans to not only making Guyana a hub but a food production destination, “ensuring that our future economy is built on a strong foundation of food security but more importantly allowing our country to become a net exporter of food.”
To accomplish this, Ali said, requires investment, transformation, institutional support and training. “When we speak about the agriculture sector, it’s moving food production, agriculture, as we know it traditionally, into agri-business, into an agri-system that supports agri business development. All of this is geared towards transforming the sector, making it more competitive and diversified. Investing in a way that the sector become resilient,” he explained.
The result of this investment, Ali said, will become evident within the next two to three years. “That is why Budget 2022 is so important because it lays the foundation for medium and long term initiatives that will bring in returns down the road… It’s ramping up, it’s gearing up, it’s moving in the direction, it’s putting things in place to get us into that direction,” he said.
The aim, Ali said, is to integrate agriculture as a “main component” of the country’s diversified economy. “Attract new investors, attract young people into the sector so that they can be part of the growth and development of this future mainstay of our economy,” he said.
In terms of sugar, Ali said the $6 billion allocation to support the GuySuCo’s ongoing investment in field and factory will be used to “turn around” the country. “….The transfer of this $6 billion will be directly supporting thousands of jobs. Directly and indirectly supporting tens of thousands of jobs for tens of thousands of families,” he said. “….So this investment is beyond sugar, it enhances the livelihood of persons employed with GuySuCo and it stimulates economic activities surrounding communities,” he added.
At the same time, he said it promotes economic and social wellbeing and boosts job creation. “That is why we say the budget is about economic expansion, economic strengthening and the boosting of opportunities to sustain and create jobs,” Ali noted.
Critically, he said, the government will be seeking to engage private investment into the industry. “But you can’t do so with a dead asset. So we are also laying the foundation for serious discussions with the private sector as potential investors in this sector,” he stated.
“Pass on effect”
Ali added that similar investments were made in other subsectors and are critical to increase production and revenue stream. “These investments are geared at achieving what we set. The targets. Increasing productivity, reducing the cost of production, expanding and securing better paying markets,” Ali said.
“….All of this ultimately benefits the entire society. That is the pass on effect…That is how economies are linked. That is how sectors are linked,” he added.
On the energy sector, he stated that investments will not only be transferred for energy security but for creating an energy platform that will bring the jobs of the future. “…Ultimately it is about jobs, the creation of wealth, revenue and more disposable income for the people of this country,” he said.
In the tourism sector, Ali further explained that the country’s growth is being viewed as a “shoot off” from the emerging oil and gas sector. As a result, he said it is also critical to train workers in this sector so as to make it competitive.
Similarly, he said ICT development is critical since it will enable the hinterland and riverine communities to be up to speed with the rest of the country.
“In the ICT sector, it improve services, it creates the framework for improved services, enhancing the community and community lives and creating jobs. Importantly, bridging the gap. Technology is the most efficient way in which we can bridge the gap within communities and regions, especially our hinterland and riverine communities,” he said.
