Opposition’s budget presentations political rhetoric - Minister Singh
- Calls on them not to misuse one-seat majority
Georgetown, GINA, April 17, 2012
Finance Minister Dr Ashni Singh during his wrap-up presentation in the National Assembly
The curtains came down this evening on the debates on the 2012 national budget with Minister of Finance, Dr. Ashni Singh, who observing that the Opposition has squandered yet another opportunity individually and collectively cooperate with the Government in the interest of Guyana and its people.
He noted that uniqueness of the current parliamentary configuration presented members opportunities to demonstrate their willingness to rise to the occasion; however this was not seized by the Opposition; instead they resorted to opposing merely for the sake of opposing.
He reminded the House that the budget debate was never intended to be a contest of oratorical versatility or an exhibition of hooliganism and linguistic or poetic abilities; instead it presented the opportunity for a competition of ideas, particularly given the current configuration of the House.
Budget Theme
Referring to the theme of budget 2012, “Remaining on Course, United in Purpose, Prosperity for All”, Minister Singh said that, it was not casually formulated; but rather is the result of considerable reflection of the part of Government and represented the outcome of efforts intended to capture the essence of where the country is and, what needs to be accomplished in order to arrive at the destination to which every Guyanese aspires.
“The theme was built on a premise that our country has been advancing along a path of progress... a path towards a modern and prosperous Guyana with most elements to which very few would disagree...one could scarcely argue with the admonition that we remain on course, on this path, redoubling our resolve to working more closely together as we pursue the objectives of generating prosperity for our country,” the Finance Minister stated.
Besmirching professionalism
Minister Singh rebuked Alliance for Change’s (AFC’s) Leader, Khemraj Ramjattan for casting aspersions on the economic statistics that were produced by hardworking professionals within the Government agencies.
He stated that the National Bureau of Statistics (whose work and integrity Ramjattan attempted to question), is headed by a very capable, long-standing professional of over 40 years of experience in official statistics
“These people are not politicians...professional civil servants are not people who like to enter the political fray, it is downright irresponsible for members in this House to stand up and besmirch their professionalism,” he asserted.
Economy Rebasing
Responding to Ramjattan’s talk of rebasing Guyana’s economy, the Minister explained that this has been a matter that has long been recognised by the PPP/C. The country’s Gross Domestic Product (GDP) was last rebased in 1988 when the economy was fundamentally different in structure from that which obtains today and, has never been a matter of dispute.
Countries all over the world rebase their GDP periodically and Guyana is no different. Moreover, this rebasing was done the benefit of extensive assistance from reputable international organisations such as the International Monetary Fund’s (IMF’s) Caribbean Regional Technical Assistance Center, which scrutinise the country’s economic statistics.
Further, in the process of rebasing Guyana’s Consumer Price Index (CPI) basket, assistance was garnered from the United States Census Bureau.
Donkey-cart economy
With regards to Ramjattan’s reference to a donkey-cart economy, Minister Singh said that, “We might not be where we want to be, I doubt that we will ever be where we want to be...the task of national upliftment just like the task of personal betterment, is never complete.”
He said that if all Parties are to engage in sincere and frank discussions about where the country is headed, people must at very least, show willingness to be honest and added that, “to pretend that nothing is happening in Guyana; that we are not moving in the right direction and that there have been no obvious improvements, is dishonesty and an exercise in self-delusion.”
Lack of objectivity
Minister Singh lamented that time and time again, Government has sought to make available vast volumes of documents on various entities and projects such as the Amaila Falls and Marriot hotel to members of the Opposition; however, upon receipt of such documentation, only passing comments are made with regards to those projects and benefits they seek to create.
In fact, the major projects that Government has embarked on were described as “fanciful projects” by Ramjattan.
“It is alarming that people who would be willing to say that is a good thing in private...but when they come to the National Assembly they are not prepared to say that...it calls into question the sincerity of the Opposition to have meaningful engagements for the development of this country,” Minister Singh said.
He added too, that throughout the presentations over that past few days, no one from the Opposition benches came forward with any meaningful comments on projects such as the Amaila Falls; instead they resorted to repeat the same rhetoric simply for the sake of political mileage.
“I do not expect for them to say that they agree with everything in the budget, but I expect at the very least, some degree of objectivity,” he reminded.
Hydropower
Minister Singh commended the presentation made by Leader of the Opposition, David Granger, and said that the Government is in agreement with many of the objectives that he outlined but, lamented the fact that those same principles were not embraced by the members of his Party, A Partnership for National Unity (APNU) as illustrated over the past six days.
Responding to Granger’s question about what is being done for the manufacturing sector, the Finance Singh explained that while it will not put money directly into the sector, it is investing in factors that affect or influence it.
Recognising that the one impediment to more rapid growth in the manufacturing sector is affordable power, the Administration is investing in the Amaila Falls project which will reduce the cost of power and remove the need for redundant power from investors.
“There is no investment that is better for this country than that of hydropower,” he maintained.
Misleading Mathematics
Minister Singh exposed the inaccurate calculations quoted by AFC member, Moses Nagamootoo in his attempt convinced the House that Guyana’s external debt is higher today that it was in 1992.
Nagamootoo said that at the prevailing exchange rate of 125:1, the 1992 debt was $252.5B. He added that today, in spite of write-offs, cancellations and rescheduling, the national debt stands at $1.2B, which at the current rate at 207:1 amounts of $253.4B, nearly $1B more than it was 20 years ago.
Minister Singh said that firstly, two nominal numbers cannot be computed at two disparate points in times. He then proceeded to explain a mathematical breakdown to the House using Nagamootoo’s numbers to show the inconsistency in his calculations.
VAT
Throughout the course of the debates much has been said about the Value Added Tax (VAT) by Opposition members who described it as a burden on citizens and called for a reduction.
“A reduction in the VAT will bring little to no benefits to the people in this country; in fact, the most vulnerable will benefit the least from a cut in VAT...if you wish to assist the most vulnerable in our society, a cut in VAT is the least efficient way to do it,” Minister Singh explained.
He explained that people earning modest incomes would purchase all of the basic food items that are zero-rated on VAT and the only VAT-able items would be clothing and telephone bill.
On the other hand, a wealthier person would purchase zero-rated basic food items as well as imported and processed items that are VAT-able. This hypothetical person will also incur costs for cable/internet, entertainment (bars, restaurants etc) and other luxury items.
VAT is a tax on consumption; as such those who consume modest items would incur a modest VAT bill; while those who consume lavish items would incur a large bill and therefore, stand to benefit most from a cut in the tax.
“This argument that the poor man will benefit from VAT is a misrepresentation to the people of this country...the VAT that a wealthy person will save from a flat-screen TV bought, will be more than the VAT saved by a poor person for an entire year on everything he/she will buy,” he explained.
The Minister called for judicious conduct from all members of the House over the next six days when the estimates of expenditure will be considered.
“It is incumbent on all of us to ensure that we do not use this tyranny of one to cut solely for the purpose of cutting. It is the people of Guyana, who benefit from the services provided under these programmes,” he said.
