(Guyana Times)Finance Minister Dr Ashni Singh will today present to the National Assembly the 2013 National Budget, the second in the 10th Parliament.
The presentation of the budget to the opposition-controlled Parliament is expected to be a closely monitored event as 2012’s presentation resulted in budget cuts and court battles over the power of the executive. This time around, a more mature approach to the budget is expected, political observers say.
According to sources close to the administration, this year’s budget is likely to follow the trend of previous budgets, reflecting positive economic growth with emphasis on infrastructural development and social services.
According to a source, Guyana has been on a strong footing in recent years, as stated by Minister Singh in his 2012 budget speech: “Budget 2012 comes to this honourable House when the Guyanese economy is at its strongest in recent memory. Our productive base is showing increasing signs of resilience and dynamism and is more diversified than ever before, with real growth in Gross Domestic Product (GDP) averaging 4.4 per cent over the past five years. At the same time, our external balances are at their highest ever, with our external reserves rising threefold since 2006 to US$798 million. We are much less indebted as a nation than we were 20 years ago, with external debt being reduced from 658 per cent of GDP at the end of 1991 to 47 per cent at the end of 2011. Our fiscal deficit is on a declining trend, having been reduced from 11.2 per cent in 2006 to 4.4 per cent in 2011.
“Our exchange rate has remained stable, interest rates have trended downwards, and inflation has remained within acceptable norms. Credit to the private sector has risen by 118 per cent, and total foreign direct investment has amounted to US$1.3 billion over the past five years. Moreover, domestic and external investor confidence and optimism are at an all-time high, and there have been more commitments of inward foreign direct investment in recent years than at any other time in our country’s history. This strong performance of the economy in recent years augurs well for the circumstances of our people and for the long-term future of our country.”
Measures
The source said the 2013 budget will likely see some measures for the average consumer, the private sector, and continued investment in infrastructure, education, health, security, etc. The sugar and electricity sectors, which received substantial subsidies in 2012, are also likely to be looked at closely, given the poor 2012 production of GuySuCo and the high level of fuel prices impacting the Guyana Power and Light Incorporated. Key reviews of the mining and agricultural sectors will be expected.
The average person will, however, look to the budget for measures relating to the personal income tax rate, the income tax threshold, the VAT rate, and whether electricity prices and other prices will go up. The private sector will also look to see what tax measures are proposed, particularly given that two years ago, the corporate income tax rate was lowered by five per cent.
Minister Singh will deliver his speech at 14:00h to the National Assembly and it will be carried live on national radio and television.