Business group pledges budget support
- despite reservations
Guyana Chronicle
April 14, 2004
THE Georgetown Chamber of Commerce and Industry Inc. (GCCI) yesterday indicated that although it viewed the $75.6B national budget with some ambivalence, it was willing to give its fullest cooperation to the Government and all stakeholders to ensure the efficient and effective implementation of the 2004 Budget.
The GCCI, one of several private sector agencies consulted prior to the completion of the 2004 Budget, is of the view that it has not, for the most part, addressed many of the core issues raised by the chamber.
Consequently, the perception is triggered that the consultations between the Government and the various private sector bodies are “mere formalities”, it said in a statement.
The chamber pointed out that the stagnation of the income tax threshold, for instance, restricts consumer spending power and as such limits the ability of Guyanese to offset the spiralling cost of living.
It also said that there has been a budding increase in most commodity prices in Guyana, which is expected to escalate in the upcoming months.
The GCCI, however, said it was pleased to see “some of its Budget Proposals” mentioned in the national budget.
“Mention was made of identifying and removing bottlenecks and sources of vulnerabilities, as well as tackling long term and structural issues; reinforcing macroeconomic fundamentals; retooling the economy to enhance competitiveness; support private investment; venturing into new growth activities; improve social and economic infrastructure; enhancing human resources development to meet the demands of the expanding economy,” the chamber said.
The GCCI also said it appreciated the fact that both external and internal factors militate against presenting a budget that provides tangible relief to all interest groups. As such, it urged the Government to rise to the challenges by demonstrating vision and leadership in these depressing times.
“For too long our nation has been the victim of its own internal dilemmas (and) it must be admitted that as a small nation, Guyana has little or no influence on the external macro economic forces,” it noted.
Recognising that “all is not lost”, the GCCI said it strongly feels that as a nation, “we must control our internal problems which have become a trend of being more overwhelming than our external issues which should be our main focus”.
“While the size of the National Budget continues to grow, the chamber strongly advocates that there must be effective mechanisms, policies and implementations in place to facilitate optimal utilisation of resources to ensure that Guyana is adequately equipped to survive within this chaotic and challenging globalised environment,” it said.
It also contended that the migration of qualified and experienced personnel continues to be a critical blow for Guyana and noted that the Guyanese community is increasingly dependent on remittances from abroad.
The chamber is of the view that a growth rate of 5-7% is needed to “make a more meaningful impact on our poverty levels in Guyana”.
Additionally, it is difficult for the economy to thrive in an environment of bad relations between government and opposition, the GCCI said.
Noting that the presentation of a national budget may have been a task concluded, the chamber contended that it is now the major task ahead to have proper implementation of the budget which is “extremely critical” for the progress of Guyana.
“While the Government must be congratulated for having better roads, bridges and schools (among other things), the chamber would like to see increases in reasonable returns within all the sectors and a rise in the standard of living of every Guyanese”.
“Unfortunately, the reverse seems to be the case; many businesses are facing imminent closure while others are downsizing…in the past our economy was plagued with political disturbances, now we are plagued with an uncontrollable crime situation (and) these negative events have resulted in billions of dollars in losses and possible endangerment to local and Foreign Direct Investment (FDI),” the GCCI asserted.
According to the body, FDI plays a major importance in the economic development of a nation, one that Guyana cannot afford to lose on.
The chamber said it was therefore pleased to see the budget assisting the Guyana Police Force to combat crime where necessary.
Funds have already been allocated to rehabilitate buildings, purchase equipment and vehicles, and recruit additional officers.