The Government has come in for praise from the commercial sector with the Private Sector Commission (PSC) and the Guyana Manufacturing and Services Association (GMSA) stating that the $1.146 trillion Budget is an indication of the Government’s commitment to fostering economic growth and development.
The PSC, in a statement, said the key highlights of the budget include the impressive 33% growth in Guyana’s real economy in 2023, coupled with an 11.7% expansion in the non-oil sector.
According to the PSC, the significant growth recorded in the economy is evidence of government’s dedication to economic diversification and sustainability, which, undoubtedly would continue in 2024 with heavy investments in the areas of agriculture, trade, infrastructure, health and education.
“Notably, the agriculture sector receives a substantial 97.6 billion Guyana dollars, focusing on revitalization through significant investments in drainage and irrigation infrastructure to boost productivity and enhance food security. The commitment to infrastructural development is evident with 204.1 billion Guyana dollars allocated for upgrading roads and bridges, reflecting continuous dedication to improving transportation networks and river transport, positively impacting trade and connectivity,” the PSC said.
It said too that the government has demonstrated a commitment to the development of small businesses, and measures such as the reduction of interest rates on loans lower than 5 million Guyana dollars is most commendable.
“The replenishment of the Small Business Development Fund is crucial for supporting small business growth. Additionally, the removal of VAT on technology and the increase in the income tax threshold to 100 thousand Guyana dollars will contribute to increased disposable income, fostering economic resilience and growth,” it said.
Further, it said fiscal measures such as maintaining zero excise tax on fuel, extending the application to freight cost adjustment, and implementing measures to alleviate the impact of the cost of living demonstrate the government’s responsiveness to the needs of every Guyanese.
In a separate statement, GMSA said government has been proactive in meeting the needs of the Guyanese people.
It said it is particularly pleased with the emphasis placed on supporting the manufacturing sector – a move which will undoubtedly create new opportunities for local businesses and contribute to job creation.
“The continuing development of current transformative infrastructure is key to enabling business activity and delivery. Such key infrastructures include enhancements to the energy grid, incorporating developments like the Gas-to-Energy project and solar and hydro initiatives. Equally significant are transformative land infrastructures, including the Demerara Harbour Bridge, the Schoonord to Crane highway, and the Ogle to Soesdyke Linden highway. These initiatives collectively contribute to fostering a conducive environment for business operations,” GMSA said.
It said government’s inclusion of some of the association’s recommendations assured the intention to work collaboratively with the private sector.
GMSA said the $527.4 million proposed for the development of the agro-processing sector is critical.
“The GMSA anticipates that this strategic investment will provide manufacturers with the necessary infrastructure to enhance their production capabilities and meet growing market demands. [The] $3.3 billion for the development and rehabilitation of industrial estates in Wales (Region 3), Regions 2 and 10. The GMSA believes the development of these estates will further support the growth of manufacturing in Guyana,” it said.
The association also lauded the move by the Ali Administration to inject $450M into the Small Business Bureau (SBB) Fund. It said the funds will enable businesses to attend regional and international trade fairs and events.
GMSA also welcomed investments in the area of entrepreneurship, training and mentoring, education with investments in both the University of Guyana and GOAL, and the menu of measures announced that would increase the disposable income of the Guyanese people and foster growth with the commercial sector.
The political opposition has described the budget as one that is geared towards making the rich richer while ignoring the majority of Guyanese.
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