Georgetown: The coalition government Friday presented its second National Budget since it came into office. This budget amounted to GYD$230 Billion.
Finance Minister Winston Jordan presented the financial document for the fiscal year 2016 today in the National Assembly, under the theme: “Stimulating growth, restoring confidence: The good life beckons.”
He told the House that the budget builds on the policies and programmes that were outlined by the coalition and extensively elaborated in his maiden budget speech, all in keeping with achieving the good life.
The platform for budget 2016, according to him, is Promoting National unity, national infrastructure, strengthening national institutions, strengthening national security network, extending education and health, affordable housing.
“Budget 2015 projected 3.4% economic growth, however, the country recorded 3% growth. Mr. Speaker, the budget for 2015 projected an overall real economic growth rate of 3.4 percent. This target appeared under threat at mid-year, when real economic growth was recorded at a paltry 0.7 percent. However, buoyed by accelerated activities in the rice, sugar, gold and construction sectors, as well as renewed optimism and confidence by the business community, during the second half of the year, the economy rebounded to record real growth of 3.0 percent, “Minister Jordan said.
The Minister reported that there was an improvement in the overall deficit of the balance of payments, which contracted by 7.5 percent to US$107.7 million. This was principally the result of a reduction in the merchandise trade deficit, occasioned by a 17.7 percent decline in imports, which was due to lower oil prices.
Net domestic credit of the banking system grew by 19.4 percent to $185 billion. The Guyana dollar exchange rate remained stable throughout 2015, at G$206.5 per US$1.
“Mr. Speaker, our Government continues to prudently manage the country's public debt, in order to reduce the debt burden. I am happy to report that this has resulted in the total public debt to GDP ratio reducing from 51.9 percent, in 2014, to 48.6 percent, in 2015. By the end of 2015, the total stock of public debt stood at US$1.5 billion, a reduction of 3.6 percent from its 2014 level,” said Jordan.
Looking ahead in 2016, the Minister said the policies, programmes, reforms and measures envisaged in this budget are designed to stimulate the economy to achieve higher growth rates. “It is an economy which is growing at ever higher rates, with the benefits being more equitably distributed, which will enable us to bring the "good life" closer to reality. We cannot continue to have the see-saw growth that has been witnessed over the past three decades and expect to solve pressing issues such as unemployment and poverty.”
He continued “it is our view that the Agenda for 2016 provides the building blocks for a resilient economy, capable of withstanding global shocks and climate change. The Agenda also establishes a pathway for our people to face the future with renewed hope and confidence.”
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