PSC Chairman pleased with Budget 2014

COMMANDING multi-billion dollar inflows into the national treasury, the private sector continues to make significant contributions towards the country’s economical growth and the generation of revenues to boost national development. 

What was described as the “largest budget ever” by Finance Minister, Dr. Ashni Singh, could have favourable impacts on the private sector and advance its role in the economic framework of Guyana.

Ronald Webster

Noting the important role of the private sector in Guyana’s economy, Singh, on Monday, during his 2014 Budget presentation in the National Assembly, assured that the private sector has been created within an environment where they can invest in profitable enterprise, expand production of goods and services, and provide the creation of jobs.

Captain Gerry Gouveia

The minister said, “(Our) efforts have resulted in a demonstrably more diversified productive base. It is this growing level of structural diversification, supported by our Government’s attention to stable macroeconomic fundamentals and prudent public financial management, which has contributed to the economic resilience we have achieved and that has enabled us to withstand testing external and domestic shocks.”

EXALTED Chairman of the Private Sector Commission (PSC), Ronald Webster, yesterday remarked how pleased he was with Budget 2014 and exalted the recognition of the interior roads, particularly the route to Lethem. The estimated $1B project will seek to reduce cost associated with accessing hinterland villages and produce economic advantages for the hinterland region. Webster also favoured the proposal to allocate $500M towards the rehabilitation of Georgetown. On that note, he added, “not only will it provide the opportunity for Georgetown to look like a tourist industry, but it will enable a boost for the morale of people living here”. “The budget is generally a good one” he said, while keen to add that strong leadership for the implementation is instrumental in the execution of the projects. Management is very important and regardless of political background, everyone needs to work together for a successful outcome, the PSC Chairman added. Though the Private Sector Commission was unable to give its position at this time due to the need for in- depth revision of the Budget, Webster’s personal sentiments constituted positive feedback on the provisions, in particular the increase in subsidy for school children. On the other hand, he added that he would have liked to see a greater increase in pension schemes. Echoing the sentiments of the PSC Chairman was former chairman and current Chief Executive Officer (CEO) of Roraima Group of Companies, Gerry Gouveia. He said, “I was quite overwhelmed at what was presented in the budget yesterday… I see a lot of components for social development and I am pleased. Gouveia added that due to unforeseen circumstances, he was not within the boundaries of the budget presentation, but managed to get a glimpse through the media. Credit to the private sector expanded by 14.5 percent, reflecting growth in all sectors. The manufacturing, construction and engineering, personal and real estate sectors grew by 22 percent, 18.8 percent, 17.4 percent and 16.9 percent respectively. During 2013, the weighted average lending rate of the commercial banks increased by 8 basis points to 11.16 percent. This reflected a marginal increase from 11.08 percent in 2012; but, notwithstanding this movement, private sector credit continued to expand. The small savings rate declined by 36 basis points to 1.33 percent, while the 91-day Treasury Bill rate remained stable at 1.45 percent.

(By Ravin Singh)