Diligent stewardship has laid the foundation for stable economy – President Granger

─ Coalition Government transformed economy with stronger focus on building efficient public sector

─ increased minimum wage by over 50 percent thus far

─ traditional sectors are being restructured and preparations are being made for catalysing new and emerging sectors

─ restructuring of ailing sugar industry as a move to return it to viability and to reduce its financial dependency on state

─ AML/CFT legislation cleansing economy of contamination by the proceeds of illicit transactions

DPI Guyana, Saturday, August 18, 2018

The Coalition Government over the past three years has exercised diligent stewardship and laid the foundation for a stable economy says, President David Granger.

Speaking yesterday at the 20th Biennial Delegates Conference of the Peoples’ National Congress Reform (PNCR), the Head of State noted that, “our Coalition Government, notwithstanding the gravity and chronic nature of the challenges with which it was confronted, sought to repair the damage wrought by the mismanagement of the previous regime and to transform the economy with a stronger role for an efficient public sector.”

The president pointed to the government’s efforts in improving the lives of the average worker. The increase in minimum wage by over 50 percent from $39,540 to $60,000; increase in monthly old-age pensions by 48.6 percent from $13,125 to $19,500 and public assistance by 35.5 per cent from $5,900 to $8,000 were some of the improvements.

The disposable income of workers has been boosted as a result of the increase in the income-tax threshold and by a reduction in the income-tax rate.

“Our Coalition Government started to reverse the economic decline. Real GDP growth has been sustained and inflation moderated. Fiscal and monetary prudence is being practised. The economy is being rebalanced,” the president stated.

Reductions in the corporate tax rate for manufacturing and non-commercial companies from 30 per cent to 27.5 per cent, value-added tax (VAT) to 14 percent and the increase in the VAT threshold from $10M to $15M are other provisions instituted.

President Granger said the traditional sectors are being restructured and preparations are being made for catalysing new and emerging sectors.

“The ‘six sisters’ – bauxite, diamonds, fish, gold, rice and sugar – which have been the victims of ‘shocks’ in external markets, are being examined with a view to moving production up the value chain, preserving workers’ jobs and searching for new markets,” the president noted.

He pointed to the restructuring of the ailing sugar industry as a move to return it to viability and to reduce its financial dependency on the state.

The enactment of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Legislation is cleansing the economy of contamination by the proceeds of illicit transactions, the President added.

Stacy Carmichael

Image: Keno George