Guyana Observer News

Peter R. Ramsaroop, MBA

Overview
Even as the budget debate entangles our politicians, many real economic issues have impacted our nation. The budget debate is almost a waste of time. The budget presented is a non-starter and unrealistic. It does nothing for the “us” and debating it brings no value.

We should send the Honourable Minister back to his office and tell him to start over. He must start with the premise that any money spent ought to have three main objectives: Reduction in taxes; Investment in critical areas such as energy, rail from Lethem to Georgetown, and start of relocation of coastal agriculture industries, (Areas such as Lethem, Bartica, Linden, Hogg Island, Timehri, New Amsterdam and Charity can become export free zones, key border towns) and non-coastal development.

Another is education, with a focus on what we need to diversify our economy; and creation of an Economic Council to integrate the budget, the economy and the global crisis in order to cushion the impact to us the citizens prior to the next presentation.

The government needs to focus on taking care of the citizens. What we are starting to see around the country is the impact causing frustration of our people.

Actually, the 2009 budget should be the smallest budget in history. What should have happened is that a majority of the budget should have been given back to us as tax rebates in order for us to be able to put it back into our businesses, create jobs, and invest in our children’s education. Our politicians in Parliament should be advocating for a new and smaller 2009 budget.

CURRENT ISSUES:
Over the last month, numerous strikes by workers tell the story - from the poor conditions of the Air Traffic Controllers and unfair treatment of the Albion sugar workers to the white elephant Skeldon factory debacle which now takes the entire blame for lower production.

In addition, there is the dictatorial role by the Minister of Works and the Minister of Education, who usurp their authority by firing individuals without cause. The Union boss said: “I don’t understand what the Minister is doing and saying. I don’t understand why our schools have become a political background…and the Minister can play political football to gain mileage…the GTU cannot sit idly by and allow the Minister to be pussyfooting around.”

Our people are becoming more frustrated as their economic woes continue, and then have to be subjected to a Government that does not care and has become disconnected from the people and their only focus is wasting our taxpayers’ money on frivolous projects that end up causing more harm than good, like the Skeldon Factory.

DOUBLE TAXATION:
We all know that VAT should be reduced to at least 10 per cent. The budget proved that the Government collected so much money for us that they now must spend it back on themselves rather than the key objectives that I proposed in my overview.

When you go to the store and buy a major piece of appliance, you pay your 16 per cent VAT. Then, as you look on further, the cashier then adds a bunch of revenue stamps on to the same bill — double tax. What happened to the propaganda the PPP spread that the VAT tax would be revenue neutral?

They told us they must spend $500Million on Carifesta in order to bring in tourism. I drive by Buddy’s International Hotel many nights; I hardly see a single room light on. Maybe the hotel has a carbon credit policy.

We are over-taxed, over-taxed and over-taxed. We are double-taxed in many ways. Let’s tell the Minister to go back to his office and start over his budget.

CONCLUSION:
It is obvious to all of us that the current PPP Government has shed all of Dr. Jagan’s values of taking care of the working class. It seems like they only want to celebrate Dr. Jagan’s anniversary once a year as a big media event, but for the rest of the year, they forget his struggles for the working class by taking way all that the working class earned.

Why should they tax us so much? Why didn’t Dr. Jagan, when he finally regained power in 1992, raise our taxes? The reason is that it was against his policies to inflict pain on the people.

This government has shed all of Dr. Jagan’s values and now has become a government that believes in raping its citizens of its money. We see governments around the world putting together major economic stimulus packages to help people and industries survive.

We see major tax and interest reduction around the world except for Guyana. What we should all know is that for every dollar we have to spend, it will turn the economy over at least 10 times.

We should be given back our money for us to spend. Why should government spend our money? We are the ones that best know what our families need. Tell our government we need a smaller 2009 budget and to return our money.