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