PSC warns against looming budget cuts

– says alternative plans should be tabled for any  

PSC Chairman Ronald Webster

With consideration of the budget set to commence today, the Private Sector Commission has warned against any alteration of the estimates without an alternative plan.

In a statement on Sunday evening, the PSC said on March 28 it had stated that the structure of the 2013 budget had particular relevance at a time when the external economic climate is less than favourable and the necessary steps must be taken now to guard against a domestic downturn. Since that statement was made, “we have seen a further decline in commodity prices, in particular gold, and it is essential that all steps possible are taken now to expand and diversify the economy. Parliament as a whole must act in concert to promote the best interest and longer-term interest of the national economy,” the body said.

The PSC said it was deeply concerned by reports of plans by the political opposition to reduce, and in many cases totally eliminate, funding for important national development projects in the 2013 budget.

“We are particularly concerned over reports of plans to reduce allocations for the vital security reform strategy, the road to the Amaila Falls project, and the competitiveness programme for which the PSC has spent much time and effort to ensure changes to the business environment and is, in fact, a functioning programme that has brought tremendous benefit to the business environment in Guyana.”

Extremely disappointed

According to PSC, it is extremely disappointed over the targeting of the airport development project to be totally eliminated from the budget. “This airport project is vital to the safety of international air traffic into and out of our country, as well as the continued modernisation and expansion of the travel and tourism sector.”

The commission, however, said it was heartened by the plans of the government and the parliamentary opposition to continue to meet in advance of consideration of the budget estimates.  “We are hopeful that the spirit of reasonableness of what is good for our country will guide these negotiations,” the body said, adding that it has noted a slowdown in private sector activities that can be possibly attributed to the hardened positions in Parliament.

Put Guyana first

“We appeal to all parties to put Guyana first; if you are recommending a budget cut, we urge you to have an alternative plan. The Private Sector Commission supports the continued improvements to the accountability and transparency systems and encourages the development of the institutions that must ensure same at all times.”

The PSC said owing to the transformational nature of the targeted projects, any cuts would be very detrimental to the development trajectory that the country is on, adding that the programmes are important to the future of business development of Guyana. “The Private Sector Commission calls upon all concerned to ensure that in consideration of the estimates, any alteration to the budget is done in the national interest.”