Guyana ‘breathing’ again

FACED with the novel coronavirus (COVID-19) pandemic and a protracted electoral process, Guyana’s economy was bound and unable to ‘catch its breath,’ but the new People’s Progressive Party/Civic (PPP/C) Government, since being elected, has served as an ‘oxygen tank’ for the nation, implementing programmes and policies geared at rejuvenating the economy.
A slew of legal challenges, following the March 2, 2020 general and regional elections, resulted in a five-month impasse, which ended on August 2, 2020, with the PPP/C unseating the former A Partnership for National Unity + Alliance For Change (APNU+AFC) coalition.

With no approved budget and over $200 billion in liabilities, the new government was cognisant that the road to the ceremonial 100 days would be bumpy, but Vice-President, Bharrat Jagdeo said prudent management and the re-prioritisation of resources were pivotal in the effective rejuvenation of the economy.
“Effectively, it would be about 40 days…we found ourselves in an unusual situation, with no approved budget and in excess of $200 billion in liabilities and spending what needed to be cleared. There was no money to run the government.

“The ideas and programmes we had, simply could not be implemented because of the lack of funding…so, effectively, it is only about a month since we have had resources to start implementing the necessary programmes,” said Vice-President Jagdeo during a press briefing at the Arthur Chung Conference Centre, on Friday.
The routine needs of the country were compounded by those created as a result of the COVID-19 pandemic. And, after an assessment of the situation, the new government had found that the country was totally unprepared to tackle what it knew was going to be an escalation of cases when the country returns to ‘normalcy.’
“We had to quickly address that situation…a government that did not have budgetary resources, but had to try and address those issues…all these factors are looked at when you assess the performance of the government in the first 100 days,” said Vice-President Jagdeo.

Crafting a National Budget usually takes 179 days. However, the extraordinary circumstances had forced the government to condense this process and present a budget in 21 days.
In keeping with this deadline, the National Assembly, on September 26, 2020, passed the $329.5 billion budget. It was reported that after re-prioritising and re-programming fiscal measures, the government managed to add $20 billion in relief to the “pockets” of Guyanese. The conduits of relief included revised tax measures and sweeping incentives, which were announced by President, Dr Irfaan Ali.

The broad objectives of those measures are to stimulate economic activity; get persons back to work; increase Guyana’s productive capacity; reduce the cost of doing business; improve efficiency; and facilitate growth and development of businesses.
Budget 2020 includes a $25,000 cash transfer to every household; a $15,000 cash grant and a $4,000 uniform voucher for school children; $800 million for the Amerindian Development Fund; $5 billion for the Guyana Sugar Corporation (GuySuCo); a two-week, tax-free bonus for members of the Joint Services; and $150 million for frontline workers, among many other benefits.

The PPP/C, during its campaign, prior to the elections, had promised to make life easier for Guyanese of all walks of life, by crafting a coherent economic policy, something which the new government said was absent under the former APNU+AFC administration.

‘A GREAT JOB’
The government’s efforts to realise this promise have been recognised by Chairman of the Private Sector Commission (PSC), Nicholas Boyer, who, in a recent interview with the News Room, said that Government has done a “great job” in the first 100 days.
“I think government has done a great job in the first 100 days…the yardstick is what they had set out in the manifesto and how they went about trying to achieve things they spoke about,” said Boyer.

He was particularly appreciative of the revised tax measures and the incentives to stimulate growth in the economy. Boyer is also anticipating the big projects like the new Demerara Harbour Bridge, among others.
The PSC has committed to offering support for the government’s move to begin reopening the economy and called on the political opposition to also support the government in this regard.
President of the Women’s Chamber of Commerce and Industry (WCCIG), Keri Gravesande, also offered her appreciation for measures implemented by the government, acknowledging particular initiatives geared at advancing women and vulnerable groups.

Moving away from the direct business-related advancements, Gravesande told the Sunday Chronicle that the chamber is appreciative of measures geared at improving the lives of the elderly; creating job opportunities for women; partnering and supporting with the Differently- abled Association; and tackling domestic violence at the policy level, through the spotlight initiative.
She also acknowledged the establishment of the National Task Force on Gender-based Violence; support for and the empowerment of young girls; the launch of the childcare protection and adoption committee; and the COVID-19 mask drive.

On matters related to local, regional and international trade, the voices of women must be included in the debate, so the chamber is looking forward to contributing to the recently- established National Advisory Committee on External Negotiations (NACEN).
Chief Executive Officer (CEO) of the Institute for Private Enterprise Development (IPED), Ramesh Persaud, in sharing his views on Government’s 100 days in office, said: “I believe that the government has started off very well. We are happy about the progress made in achieving the promises that they made.

“We are very happy about the measures that came out in the emergency budget and we are happy to see liberalisation of the telecommunications sector.”
The institute is particularly happy about the social measures such as the $25,000 COVID-19 cash grant, the restoration of the school grants and other tax measures and incentives, which were given to increase the spending power of the individuals.

President of the Guyana Oil and Gas Energy Chamber (GOGEC), Manniram Prashad, echoed the sentiments of Persaud, noting that many of the promises made by the PPP/C in its manifesto were delivered and achieved quickly.
“We welcome the reversal of all those draconian tax measures for farmers, the removal of VAT on water and electricity, the increase in pension and the many other measures,” said Prashad.
In the area of oil and gas, he said action on the creation of a comprehensive Local Content Policy is commendable, as this will create immense benefits for Guyanese.
Over in the fishing industry, Chairman of the Upper Corentyne Fishermen’s Co-op Society (UCFCS), Pameshwar Jainarine, commended the government for the removal of VAT on essential items used in the sector.

“We also look forward to the commitments made by the minister (Agriculture Minister) about looking at some of the issues which were bothering the fishermen…We also commend the major steps to lift the ban on catfish and other initiatives,” said Jainarine.

He, however, requested that the government examine ways to subsidise the fuel cost for fishermen, as COVID-19 has effected a vast reduction in the price for fish.
President of the Essequibo Paddy Farmers’ Association, Naith Ram, also called on the government to see that the removal of VAT on pesticides and other agri-related items is adhered to by the retailers.
Ram, while commending the removal of VAT on those items, said Government needs to ensure that the measures are enforced so that the “small man” could benefit.