The working class budget

It is obvious to all of us that the current PPP government has shed all of Dr Jagan’s values of taking care of the working class. His death anniversary is celebrated once a year as a big media event, but for the rest of the year, his struggles for the working class are forgotten. As the party celebrates 60 years of existence, one must ask where has the party taken us.

Taxes are now very high. Why didn’t Dr. Jagan, when he finally regained power in 1992, raise our taxes? The reason is that it was against his policies to inflict excessive and unnecessary pain on the people. This government has shed all of Dr Jagan’s values and it seems it is now a government that believes in raping its citizens of money.

We should be left with more of our money to spend. Why should government spend so much of our money? We are the ones who best know what our families need. We should tell government we need a smaller 2010 budget and to return our money.

Dr Ian McDonald in a stirring commentary a year ago on national accounting and real life asked: “How can governments, including our own, boast about growth in GDP while the mass of ordinary people feel and know their standard of living is falling?”  We all heard the President said that the economy grew by 2% in 2009.

A larger budget?

If you hear next month that the PPP will present the largest budget in history, you should get really worried.  That means the PPP government will continue to take our hard earned dollars and spend it without considering what we need.  It is our hope that the Honourable Minister of Finance starts with the premise that any money spent ought to have three main objectives:

1.   Reduction in taxes;

2.   Investment in critical areas such as energy, road and rail from Lethem to Georgetown , and start of relocation of coastal agriculture industries, (Areas such as Lethem, Bartica, Linden, Hogg Island, Timehri, New Amsterdam and Charity can become export free zones, key border towns) and thus facilitate accelerated non-coastal development.

3.   Education, with a focus on what we need to diversify our economy; and creation of an Economic Council to integrate the budget, the economy and the global issues in order to squeeze out the maximum sustainable growth to speed up improvement of the quality of life of Guyanese.

The government needs to focus on taking care of citizens. What we are starting to see around the country is the impact of unbalanced criminal economic development on people’s level of frustration. One of the things we should see in the new budget is significant tax rebates so we can put money back into our businesses, into creating jobs, and investing in our children’s education.

Eighteen years and counting for the Road to Brazil, the Deep Water Harbour, the diversification out of sugar, a change of our investment code to attract new investors, a reduction of the burdensome tax system and finally but not least a government that is for all the people and not just some.

Freddie Kissoon said it best in one of his columns that the President and ministers blame everyone else for their faults — as an example he pointed to the sugar industry demise — but never look at themselves.  Freddie called it shamelessness. He was speaking for all of us.

In terms of accountability to the people, the government has a history of being combative. Reports emanating from people outside the government and ruling party are always criticised as painting a very bad picture of the government with the aim of embarrassing the government and gaining political points.   Only the reports coming out of government officials should be believed. Civil society has no space in this country to get its views heard and most of its prominent members are painted as being anti-government. The government relies on its propaganda machinery to provide reports that are all painting a nice and rosy picture despite the clear evidence to the contrary. As we know: “none so blind as those who would not see!”

In the 2009 Budget, the government had promised us a number of deliverables which it said it had the capability and resources to deliver.  We do not have a system in place in Parliament to measure real time expenditure therefore it is very difficult to say money went to the projects proposed versus new initiatives.  We will once again get a 2010 budget with the same plans.

Conclusion

In 2010 we have to move on from the LCDS which essentially focuses on obtaining finance for not cutting down our trees. We have to look at other alternatives such as foreign investments from corporations and Non Resident Guyanese (NRG), bond issues; concessional loans/grants for long-term developmental purposes rather than for current expenditure of government. Yes, we have to pursue sustainable development which implies sound environmental policies. As we get fully into this type of development mode we need to think seriously about saving GuySuCo by, for example, implementing a national renewable energy policy – which includes an E10 policy that promotes use of a 10% blend of locally produced ethanol with imported gasoline. Imagine Guyana growing part of its fuel needs. Let us think about a new inland city. It is also time to think seriously about buttressing security as we explore building a road and or a rail link to Brazil.  This year is the time to look at an energy strategy to prevent the blackouts. This is the year for comprehensive renewable energy legislation! Until next time “Roop” Send comments to peter.ramsaroop@gmail.com