Budget 2019

Focus on Guyana’s National Budget 2019

Focus on Guyana’s National Budget 2019 represents the twenty-ninth edition of this Ram & McRae annual publication which highlights, reviews and comments on the major issues surrounding and raised in the National Budget.

Introduction

Budget Speech 2019, the fourth presented by the current Administration, lasted approximately four and one half hours, testing the stamina not only of the Minister of Finance but the membership of the National Assembly and his audience.

Highlights

In this section, we set out, without analysis or comments, the key takeaways from the Minister’s review of 2018 and his projections for 2019.      

Review 2018

In this section, we summarise, review and comment on the economic and financial performance of the Government for the still incomplete 2018 year.

2019 Policy Issues and Targets

Targets Overall real growth is projected at 4.6% in 2019. The following graph presents the percentage of contribution to GDP at 2006 prices by various sectors: Source: Estimates of the Public Sector The primary industry groups are addressed separately below.

Who Gets What in 2019

Analysis of expenditure Introduction Properly executed, the Policies and Targets are reflected in the allocation of available funds via the various Ministries and other Budget Agencies.

Upturning the VAT

Widely regarded as an invention of Continental Europe, and its paternity in 1954 attributed to France, VAT is an indirect tax collected mainly by businesses but borne by consumers.

Budget 2019 Measures

In this section we consider the measures announced by the Minister, analyse them, evaluate their impact and discuss the extent to which they provide useful economic benefits to stakeholders.

Conclusion

The annual drumbeat of bigger Budgets has appeared to have some inherent virtue.