TABLE OF CONTENTS 1. Introduction 1 2. Economic Developments in the World Economy 4 3. Developments in the Domestic Economy in 2016 6 A. Real Gross Domestic Product 6 B. Sectoral Performance 6 a. Agriculture, Forestry, and Fishing 6 b. Mining and Quarrying 7 c. Manufacturing 8 d. Construction 8 e. Services 8 C. Balance of Payments 8 D. Monetary Developments 9 E. Prices and Income 10 a. Inflation 10 b. Interest Rates 10 c. Exchange Rate 11 d. Income 11 F. Fiscal Position 12 a. Non-Financial Public Sector 12 b. Central Government 12 c. Public Enterprises 13 G. Debt Management 14 4. Agenda 2017: Building a Diversified, Green Economy: 16 Delivering the Good Life to All Guyanese A. Introduction 16 B. Macroeconomic Stability 17 i C. Green State Development 18 D. Better Governance 22 a. Constitutional Reform 22 b. Local Government Systems 22 c. Justice Reform 24 d. Meeting Our Int’l and Domestic Legal Obligations 25 e. Anti-Money Laundering and Countering Financial 25 Terrorism f. Social Cohesion 26 E. Better Government 26 a. Public Administration and Public Financial 26 Management b. Expenditure Management 28 c. Data for Decision Making 30 d. Tax Reform 31 e. Financial Sector Reform 34 i. Addressing Derisking 34 ii. Promoting Financial Sector Stability 35 iii. Expanding and Deepening Access to 37 Financial Services f. Business and Investment 38 F. Emerging and Transformative Sectors 40 a. Knowledge-Driven Government and Industries 40 b. Managing the Extractive Sector 42 i. Gold 42 ii. Oil and Gas 43 iii. Bauxite 44 iv. Manganese and Other Mineral Offerings 44 v. Timber and Wood Products 44 c. Destination Guyana 45 d. Infrastructure for Integration 46 e. Building Sustainable Communities 49 ii i. Water 49 ii. Sanitation 50 iii. Housing 50 f. Production Transformation and Agricultural 52 Diversification G. National Security 55 a. Foreign Policy, Economic Diplomacy, and Diaspora 55 Relations b. Safeguarding Public Security, Rebuilding Public 56 Trust H. Harnessing Our Human Capital 58 a. Education for Development 58 b. Moulding a Healthy Nation 62 c. Our Youth, Our Future 64 d. Families and Children 66 e. Elderly and Persons with Disabilities 67 f. Culture and Arts 68 g. Gender Equality – Equal Rights for All 68 h. Hinterland Development and Preservation of 69 Indigenous Culture 5. Targets for 2017 71 A. Real Gross Domestic Product 71 a. Agriculture 71 b. Industry 71 c. Construction 72 d. Services 72 B. Monetary Policy and Inflation 72 C. Balance of Payments 72 D. Targets for the Non-Financial Public Sector 73 a. Central Government 73 b. Summary of Operations of the Public Enterprises 74 iii 6. Measures 75 A. Measures in Support of Our Green Agenda and 75 Protecting the Environment B. Measures to Reduce Inequality and Increase Disposable 77 Income C. Measures to Spur Economic Growth 78 a. Tender Compliances for Government Contracts 79 b. Automatic Issuance of Temporary Income Tax 80 and NIS Compliance Certificates c. Standard Income Tax and NIS Compliance 80 Certificates d. Trusted Trader Compliance Certificates 80 D. Value-Added Tax (VAT) 80 E. Measures to Improve Tax Administration 81 F. Measures to Enhance Revenue 84 G. Measures in Support of the Elderly 86 H. Measures to Improve Workers’ Disposable Income 87 7. Conclusion 88 Appendices I. Selected Socio-Economic Indicators 90 II. Gross Domestic Product at 2006 Prices by Industrial 91 Origin III. Central Government Financial Operation 92 IV. Urban Consumer Price Index-New Series 93 V. Balance of Payments Analytic Summary 94 VI. Actual and Projected External Debt Stock 95 VII. Actual and Projected Domestic Debt Stock 96 VIII. Tax Remissions by Category 97 IX. Exempt and Zero-Rated Items 98 iv X. Proposal for Increased Fees for Customs Services 107 XI. Proposed Increases in Penalties for Licences for 108 Spirituous Liquor XII. Proposed Increases in Penalties Under Miscellaneous 109 Licence Act v LIST OF ABBREVIATIONS ACP African, Caribbean, and Pacific Group of States ADS-B Automatic Dependent Surveillance – Broadcast ASYCUDA Automated System for Customs Data BIT Board of Industrial Training CARICOM Caribbean Community CARTAC Caribbean Regional Technical Assistance Centre CHPA Central Housing and Planning Authority CIPS Chartered Institute of Procurement and Supply CJIA Cheddi Jagan International Airport CLICO Colonial Life Insurance Company (Guyana) Limited CORE Community Organised for Restoring the Environment CSEC Caribbean Secondary Education Certificate CSME Caribbean Single Market Economy CSSP Citizen Security Strengthening Programme CVQ Caribbean Vocational Qualification ECB European Central Bank ECLAC Economic Commission for Latin America and the Caribbean EEZ Exclusive Economic Zone EU European Union FATF Financial Action Task Force FSB Financial Stability Board GDP Gross Domestic Product GEA Guyana Energy Agency GPHC Georgetown Public Hospital Corporation GRA Guyana Revenue Authority GRIF Guyana REDD Investment Fund GWh Gigawatt-hours HS Harmonised Commodity Description and Coding System ICAO International Civil Aviation Organisation vi ICIS Integrated Crime Information System ICT Information and Communication Technology IMF International Monetary Fund IRI Interactive Radio Instruction LDO Local Democratic Organ LED Light-emitting diode M&E Monitoring and Evaluation MAF Millennium Development Goal Acceleration Framework MCH Maternal and Child Health Mercosur Mercado Común del Sur NANA National Anti-Narcotics Agency NDIA National Drainage and Irrigation Authority NGO Non-Government Organisation NGSA National Grade Six Assessment NIS National Insurance Scheme NRDCC National Regional Development Consultative Committee OAP Old-age Pension OPEC Organisation of Petroleum Exporting Countries PEER Programme for Emergency Education Reform PSIP Public Sector Investment Programme PV Photovoltaic QMS Quality Management System RBM Results-Based Management RDC Regional Democratic Council REDD+ Reducing Emissions From Deforestation and Forest Degradation SDG Sustainable Development Goal TIP Trafficking in Persons TRIPS Total Revenue Integrated Processing System TVET Technical Vocational and Education Training UK United Kingdom UN United Nations vii UNASUR Union of South American Nations UNDP United Nations Development Programme UNEP United Nations Environment Programme US (USA) United States of America WEO World Economic Outlook YIF Youth Innovation Fund viii 1. Introduction 1.1 Mr. Speaker, I rise to move the motion for the approval of the Estimates of the Public Sector and the Budget for the Financial Year 2017 and, in doing so, I wish to indicate that Cabinet has recommended that the National Assembly proceed upon this motion, pursuant to Article 171, Paragraph 2, of the Constitution of the Co-operative Republic of Guyana. 1.2 Mr. Speaker, it is my distinct pleasure to deliver Budget 2017, the third budget of the Coalition Government in just over a year and half in office. While this, by itself, must be something of a record, perhaps, of greater import is that this budget is the first, in four decades, to be presented before the start of the fiscal year. Of interest, too, Mr. Speaker, is the fact that apart from Budget 1976, which was presented on November 24, 1975 by former Minister of Finance, Mr. Frank Hope, this budget is the earliest to be presented to the National Assembly, since our country gained Independence. Not only is this is a signal achievement, for which all of us should be justifiably proud, but it is also a testament to our stated resolve to return budgeting to its deserved place within the accountability and governance framework, so that it can best serve its critical functions of economic management; financial management; management of government; and effective implementation of government's policies. In recognition of the importance of timely budget presentation and passage to the delivery of government's projects and programmes and, with due regard to public confidence and support which this will engender, the Government is considering a fixed date for the delivery of future budgets. 1.3 Mr. Speaker, the year 2016 will be remembered, also, as the year when we celebrated the 50th Anniversary of our Independence. From near and afar, Guyanese as well as foreign dignitaries and visitors came to celebrate our achievements. True, there were a few glitches, but these failed to depreciate the significance of the occasion or dampen the spirit and enthusiasm of our people. From the hoisting of an imposing national flag on the eve of May 26, to the pageantry of the Float Parade, to the other activities and events that were held, the significance of what it means to be Guyanese was truly on display. In true Guyanese style, the over 27,000 diaspora Guyanese 1 reconnected, mixed, and mingled with their friends and families at home, their expressions of joy and patriotism heavily felt in their actions and spending. They sang, danced, drank, whooped, and otherwise participated in the celebrations. We thank them for their continued interest, contribution, and support to the development of their country. Indeed, we thank all those who contributed to making the 50th Anniversary of Independence a memorable one. We can only look forward with equal excitement to the celebration of the 50th Anniversary of the Republic, 0n February 23, 2020. 1.4 Mr. Speaker, our Independence celebrations represented one of the few bright spots in our economy in 2016. The other that is worthy of note is the outstanding achievement of the mining sector, especially the record-breaking performance of gold production. These aside, the economy felt the drag of dismal output performances in sugar, rice, forestry, and construction, including housing. While detailed analyses of these developments will be presented shortly, suffice it to say at this stage that, as explained by His Excellency President Granger, in a recent Public Interest programme, the current development model can no longer be pursued. Although he was speaking with specific reference to the Guyana Sugar Corporation (GuySuCo), his incisive insight holds true for the entire economy. This dated model cannot deliver on our aspirations as a nation.

Load more

Table of Contents