Dear Editor,
I have been a strong advocate for budgets that expand the base of the Middle Class. The 2013 Budget presented by the Minister of Finance, Dr. Ashni Singh contained critical structural ingredients that will expand the base of the middle class and ultimately achieve incremental wealth creation and continued job growth. Poverty reduction is not just about more money for the vulnerable, but by giving them the opportunity to rise above their current levels. I have advocated, over the years, for a VAT reduction.
However, I have to acknowledge that the 2013 budget direction for the broader population will achieve more money to a citizen’s bottom line than simply the reduction of VAT. From an economic perspective, the reduction in taxes combined with the other incentives proposed will increase the money
we have left over in our paychecks. We must now use these incentives to acquire personal financial growth.
Overall, I believe the baseline is in place for our nation to continue its growth as an emerging economy and set us on a steady pace for job growth.
*The Opposition have failed to:
1. Come up with an Alternative Budget – What are their estimates for growing our economy? Top, so-called, financial experts have failed every year to construct an alternative budget. I had even funded one in the past but no one could produce it. If you are a supporter of the opposition, I would recommend you pay attention to the debate and ask your representative for a copy of their budget and estimates for improving our nation. In addition, you must ask how they will pay for any more reductions or distributions. I will be selfish in this statement, but I rather the Government spend money keeping my electric bill down, than see it go up.
The opposition wants no more money to go into GPL. With fuel cost constantly on the rise, I would recommend we continue to look at other
energy solutions rather than simply refusing to fund GPL. The one thing I know; I do not want is a higher electric bill.
2. Propose a plan of Capital Investment that will increase job growth and infrastructure improvements.
My recommendation as a measurement of a successful budget is combining tax reduction while creating incentives for the private sector to create jobs and infrastructure improvements toward the vision of a transport led and energy driven economy. I recommend the opposition do not simply oppose the estimates but to constructively discuss the Growth Strategy proposed. We must keep in mind that we all must put our nation forward as a growth economy and a place where we continue to attract investors.
It is easy to play politics on the budget such as saying Old Age Pension is low or the budget is bland. I have done all of that in the past but even
I at the end of the day knew that a budget is more than that. Rather, it is about an integrated approach of tax incentives for personal households and businesses and yet still provides opportunities for key capital investments in areas of energy, roads, schools and other areas that will attract employment and future growth such as the airport expansion.
*More Money in our Pocket: Targeted Tax Cuts
In simple terms, we will have more money in our pocket at the end of the month. When you combine the reduction in PAYE tax (From 33 to 30%) for Mortgage Interest and reduction in personal property taxes (0% to 40M) this creates a pool of discretionary dollars for us to use to improve our well-being. The modest policies in the budget will
a. ease the burden on working families,
b. cultivate the conditions for expanding our growth (Home ownership, etc)
*Job Growth Incentives: Stimulating the Economy
In addition, the 2013 budget provides a major tax incentive which provides
the private sector the necessary capital to expand or create new opportunities. A small business strives on incentives and this is a proven way to jump start new economic growth in our nation and assist in job creation.
*Conclusion:
There is much more than I can write in one column in evaluating the 2013 budget. I recommend, as you listen to the political rhetoric over the next few weeks, evaluate each component that affects you with a simple checklist.
1. Will I have more money at the end of the month with the tax incentives?
Yes, we all want more but will the increase allow us the potential to build a home or buy a car.
2. If we do not invest in GPL to help keep the cost of electricity down; can we really handle paying more?
3. As a small business owner, how will you use the tax incentives and reductions to improve and expand your business or even create new ones?
4. How will the airport expansion benefit each one of us? From families visiting and being pleased they will not get wet anymore to expanded air operations that will bring in more investors.
5. The expansion of new roads for everyday use, roads for farmers and roads to create new communities. Yes, we all want better quality so we will continue to push for more accountability.
6. How will future growth expand our income? Are we able to increase help to our family members that are pensioners? The more government has to pay, the more they have to tax us. I rather have more take home money and fulfil my obligations to take care of my family myself. Do you?
I can go on. The bottom line, debate is good, but let us make it meaningful. Discuss disagreements with data and practical improvements.
Let’s not continue to oppose for opposing sake. It is time to move on, time to get over it and time to get it done for the benefit of us all. “We Guyanese”
Yours faithfully,
Peter Ramsaroop
