Labeling the PPP administration a “mafia masquerading as a government”, Hon. Amanza Walton-Desir, MP, accused the Government of “trickle down economics” in the allocation of resources inside the 2022 Budget. A system she said never worked.
Last week ‘Finance Minister’ Dr. Ashni Singh informed the nation during his Reading of Budget 2022 that it will provide adjustments to certain taxes that are payable by multi-national corporations such as ExxonMobil, Schlumberger, Halliburton and other key players supplying goods and services to the Oil and Gas industry.
The top 1% wealthiest local businesses including shore base companies and a number of Trinidad and Tobago based oil and gas support service companies are projected to benefit billions of dollars from the Ali administration tax cuts in budget 2022. On Food Security, Budget 2022 is projected to offer old rhetoric to the fishing community and the rice industry.
The Government promised more access to lands, improvement in yields, more farm to market roads and access to market; but once again failed to present a comprehensive vision to revitalize the ailing rice industry, his government’s empty promises to revitalize GuySuCo, and a plan to alleviate the continuous challenges of low catch faced by fishermen across the coastline.
Budget 2022 will present no new programmes, financial relief or climate financing to farmers affected by flooding in the Mahaica/Mahaicony Region or in the Essequibo Islands. The Ministry of Agriculture will continue on the path it has embarked on since 2020, despite those measures are not working to address the most pressing needs of farmers across Guyana.
The Government has commit to achieving in Caricom 25% less food import by 2025, but failed over the past 5 months to address the issue of rising food prices in the streets and supermarkets across Guyana.
Little to no relief was promised in the Budget to those in small scale agriculture. These farmers, like so many Guyanese with small enterprises, will continue to pay their share of excise tax for the import of most categories of vehicles, while the top 1% investing in the oil and gas industry, will benefit from tax breaks on all category of vehicles (double cab pickups) according to the Finance Minister.
The excise duty, imposed on oil executives importing Hilux and luxury pickups of such kind, trucks etc., will be rolled back by Budget 2022.The Minister vowed that these measures will be sustainable and are aimed at “the people enjoying the best life in the shortest possible time”. At the heart of sustainability is equitable distribution of resources, ending hunger, poverty and increasing good governance.
However, Dr. Singh failed to address the growing call by public servants for a living wage. The trade union movement seeks an increase in the national minimum wage from the mere $44, 200 per month, which is earned by the majority of Private Sector workers in Georgetown, the Capital City of the new oil producing country, and removal of Withholding Tax on the bank savings of the working poor.
Notably, withholding tax will be removed on a number of services that benefits the wealthiest in Guyana. The PPP budget will not increase spending, to address at a minimum, the growing issue of crime including robberies by armed gunmen in the middle of the Capital city in broad day light and the discomfort citizens feel when walking the streets of Georgetown. Instead, the answer will be more construction of police stations and guard huts.
No new programmes will be rendered for the advancement and inclusion of the indigenous communities in the Oil and Gas industry. Better retirement plans for police, teachers, nurses, the fire service and the military will be absent. Billions will flow to the wealthiest contractors in Guyana, while little will go towards reducing the high cost of internet, telephone and electricity services. No relief is expected for the mini-bus operators and taxi drivers crossing the Berbice River Bridge.
Budget 2022 will not help the truck driver stuck at Sherima Crossing or the small scale gold dealer considering to close shop if fuel prices increase once more. The teacher and her husband considering a second job or starting a business to meet their next month’s mortgage, have nothing to get from budget 2022. Budget 2022 is expected to be one focused on those that control the construction sector. It is a budget poised to ensure tax reform and financial relief for the top 1% of the wealthiest Guyanese.
The Oil and Gas Budget 2022 is not for the poor.
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