FINANCE Minister Dr Ashni Kumar Singh, yesterday, presented to the National Assembly a record $208.8 billion National Budget delivering on his promise of an all embracing budget with the announcement of a wide range of relief measures.In his marathon 188-minute presentation, which was punctuated by frequent applauses from his colleagues, the Finance Minister projected a 5.3% growth in GDP in the national economy which has enjoyed seven consecutive years of positive growth. Last year the economy grew by 4.9%. Among the measures he announced were increased Old Age Pension, subsidised electricity for pensioners, reduced property taxes for companies and individuals, mortgage interest relief for first-time home owners and reduction of personal income tax.

** OLD AGE PENSION This will be increased to $12,500 representing an increase of 25% and will result in an additional $1.3 billion of disposable income being placed in the hands of 42,500 citizens

** ELECTRICITY ASSISTANCE PROGRAMME Government will provide pensioners with an assistance of $20,000 per annum to pay for electricity charges.

** PROPERTY TAX ON COMPANIES With effect from year of assessment 2014, companies will pay no tax on the first $10M on net property; the next $15M will be taxed at 0.5%; and the remainder of net property will attract a tax of 0.75%.

** PROPERTY TAX ON INDIVIDUALS With effect from 2014, the first $40M of net property will be exempt from tax. As a result, thousands of low and middle income persons with net property below $40M will no longer be subjected to property tax.

** MORTGAGE INTEREST RELIEF With effect from this year, first time home owners with mortgage loans of up to $30M will be permitted to deduct interest they pay on such mortgages from their taxable income.

** PERSONAL INCOME TAX This has been reduced from its current 331/3 % to 30% which will benefit some 184,000 taxpayers and an additional 41.8 billion of disposable income will be placed in the hands of the paying public.

** NATIONAL INSURANCE SCHEME (NIS) Dr Singh announced an increase of one percent in contributions for both employed and self employed persons, but he explained that to prevent the impact of this increase on the vulnerable, the government will meet both the employer’s and employee’s share with respect to persons whose income is not more than $50,000.

** LINDEN ELECTRICITY The Finance Minister recalled that efforts were initiated in last year’s budget to gradually align electricity rates paid by residents of Linden with those paid by customers on the Guyana Power and Light (GPL) grid.

He noted that this led to unfortunate events and consequently a committee was established to deal with the rates issue. He announced that pending the outcome of the work of the committee, $2.9 billion has been allocated in this year’s budget to meet the subsidy in Linden and Kwakwani so that 10,363 electricity customers in Region 10 can continue to benefit from prevailing rates through the remainder of the year.

Dr. Singh noted that, at current rates, this translates to a benefit of $279,801 per electricity customer per annum or $23,317 per month. He, however, urged that there be a “timely completion of the Committee’s deliberations so that this matter can be brought to conclusion”.

** GPL & GUYSUCO

The Finance Minister also announced financial support for the sugar industry and GPL which are currently facing several challenges. In this regard, government will be providing $1billion to the Guyana Sugar Corporation (GUYSUCO) to meet the financial requirements of its transformation plans. With respect to GPL, $5.8 billion will be provided to the company to meet its cash flow requirements. In addition, a further $5.4 billion will be provided in support of key projects to upgrade its transmission and distribution network. Winding up his presentation, Dr Singh noted that the outstanding macroeconomic performance in defiance of challenging conditions is as much an accomplishment of those who make and implement policy, as it is those who save and invest capital and the workers. “It is this daily transformation of our country and advancement of our people’s wellbeing to which the House must rededicate itself as we consider Budget 2013. The question we must constantly ask ourselves is whether each decision we take would bring betterment to our country and its people, and our answer must always be motivated, not by the perverse urge to demonstrate the sheer might of the vote we are already known to have, but by the much humbler obligation we owe to use that vote responsibly,” Dr Singh exhorted.

*** PULL QUOTE:

“It is this daily transformation of our country and advancement of our people’s well being to which the House must rededicate itself as we consider Budget 2013. The question we must constantly ask ourselves is whether each decision we take would bring betterment to our country and its people, and our answer must always be motivated, not by the perverse urge to demonstrate the sheer might of the vote we are already known to have, but by the much humbler obligation we owe to use that vote responsibly.” - Dr Ashni Singh

***PULL QUOTE: “Budget 2013 includes something for all Guyanese, the 42,500 old age pensioners who will receive a higher pension from May, the young professional who will repay her mortgage more quickly now because of the mortgage interest relief she will receive, the farmer who will produce more because of the affordable inputs he will now be able to access, the young recently qualified doctor who will embark on an exciting new profession in the public health care system, the single mother who will access her first loan under the expanded WOW programme, and so many others. With this budget, this People’s Progressive Party/Civic Government takes yet another important step forward in facilitating development in our country and improvement in the life of every Guyanese.” – Finance Minister Dr. Ashni Singh