Budget 2014

Focus on Guyana’s National Budget 2014 represents the twenty-fourth edition of this Ram & McRae annual publication which highlights, reviews and comments on the major issues surrounding and raised in the National Budget. Each year, Budget Focus is circulated among politicians, the business community and the country representatives of international agencies operating in Guyana. But most importantly for us and the general public, is the wide circulation made possible by the publication, in the Stabroek News, of an abridged but comprehensive version of Focus. We thank the publishers for making this possible.

20140331amaila falls logoThe contents of this publication are not intended to take the place of the text of the Budget Speech or of a professional advisor. This analysis is prepared and distributed on the understanding that Ram & McRae is not engaged in rendering professional services to the reader. If financial or other expert assistance is required, please contact the Firm.

Introduction

Budget 2014 was delivered on Monday March 24, just one week before the constitutional deadline and almost three months into the fiscal year.

Highlights

  2013 Facts   ●  Growth in real GDP of 5.2% compared to a target of 5.3% and actual rate of 4.8% in 2012. 

Who Gets What in 2014

Current Non-Interest Expenditure   In this section we consider how the budgeted expenditure is allocated among the principal Ministries, Departments, Regions and Programmes.

Budget 2014 Measures

  Chapter 6 of the 2014 Budget Speech contains twenty-two paragraphs covering 13 measures and their justification.

Commentary and Analysis

In this section of Budget Focus 2013, we identified and discussed what we considered eight pressing issues not only with budgetary implications but also having wider social, economic and constitutional relevance.

The Insurance Threat

The Insurance Association of Guyana (IAG), a group representing insurance companies and brokers, has decided to increase premiums for flood insurance both on businesses and households in the country.

Pro-poor Policies

There were two recent occasions when the cost of living, or rather the cost of maintaining a family, came to the fore.

Conclusion

  Budget 2014 is a huge disappointment; it seems to contain only a shopping list for Expenditure, while offering to do nothing on employment creation and addressing the critical issues of corruption and better public sector financial management.