Speech Highlights

2001 Facts

• Real Growth in the economy of 1.9%

• Overall balance of payments declined by US$25.5Mn to a deficit of US$8.4Mn in 2001

• Overall expansion of the monetary base by 8.9%

• Depreciation of the Guyana Dollar by 2.6% compared to 2% in 2000

• Marginal increase in Current Revenue collections from G$41.3Bn in 2000 to G$41.4Bn

• Current account deficit of US$128.6Mn and a capital account surplus of US$115.3Mn

• Increases in sugar and rice production by 3.9% and 10.4% respectively

• Minimum public sector wage increased by 5.5% to G$20,045 per month

Measures - 2002

• No new taxes, fees and fines

• Abolition of 10% room tax for tourism Resorts

• $350Mn allocated for new economic ventures and $200Mn for the development of industrial estates

• Reductions in entertainment tax of 15% (to10%) for urban cinemas and 15% (to 5%) for rural cinemas

• Increase in remission of duty and consumption tax to 50% of the value of investment for expansion of existing and construction of new hotels

• $2Bn allocated to poverty reduction programmes

• Local government bodies to be supported by a $259Mn budget allocation

• Government to embark on study to reform tax system and tax administration

Financial Targets - 2002

• Inflation - 5%

• Growth in Real GDP of 2.0%

• Current revenue of $43.8Bn, a 5.8% increase over 2001

• Current expenditure of $48.8Bn, an increase of 3.9% over 2001

• Estimated total expenditure of G$68.9Bn, 6.5% more than in 2001

• Overall deficit of the central government (before grants) to decline by $2.9Bn.

• Overall deficit of non-financial sector to increase from $8.7Bn to $9.6Bn(6.8% of GDP).

• Improvement in the overall deficit after grants from $11.1Bn to $10.6Bn or 7.6% of GDP