The Private Sector Commission wants the new government to put systems in place to rebuild consumer confidence and spending even as it has admitted that the downturn in the economy started long before the new government took office.

The Private Sector Commission (PSC) met with the business community on Friday, July 24, 2015 to discuss the recent perceived downturn in business.

According to a release from the organization, business representatives mentioned that they have noticed a drop in consumer spending and expectations.

“The PSC has recognised that the economy has taken a downturn since 2014, but the present administration has an opportunity to restore this confidence, by releasing a budget that would stimulate spending and has in fact said this to the Government of Guyana through the Minister of Finance with whom we met some time ago. We are of the opinion that this will cause businesses to re-invest in projects, which may allow Commercial Banks to increase their loan portfolio; thus injecting needed funds into the economy”, the PSC noted.

According to the PSC, it “is of the opinion that once there is a decline in consumer expectations and spending, it can create drop in sales and profits. This concern would force businesses to freeze on hiring and inevitably the retrenchment of employees; some businesses have already started laying-off.”

The body is also calling on the government to put a hold on a plan to transfer some $60 Billion of government money from commercial banks that were deposited there by the previous administration. The money should have been deposited into the state’s treasury. 

The Private Sector Commission said it “is extremely concerned about the intended removal of over $60 Billion in Government funds that are deposited at the Commercial Banks.”

The PSC said the business community is also concerned about the persistent “bottle necks” when doing business with the Guyana Revenue Authority (GRA) and is of the view that the GRA needs to expand its taxpayer’s bracket and focus on those individuals who have been evading taxes for too long.

“To this end the Minister of finance was written to and meetings were held with the top brass of the GRA and the PSC.”

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