Stimulating Growth, Restoring Confidence: The Good LifeBeckonS

2016budget

government of guyana

aT a GLance

LGELocal Government Elections to be held on March 18, 2016 after 19 years!

JubiLEE & Tourism• $300M for Golden Jubilee celebrations• $200M for Georgetown Restoration Programme• Four-day Jubilee Festival for National Stadium;

Coconut Festival along with local events countrywide• Campaign ‘Home Coming Guyana’ to target Guyanese

Diaspora • “Guyana, South America Undiscovered” – new

initiative to market Tourism • Revised National Tourism Policy to be developed

ThE Good Life bEckons

VAT, TAxEs & businEss• VAT exemption for par-boiled rice; packaging materials

and malt extracts other than Ovaltine• Customs Act to exempt computer printer ink and toner

cartridges for non-commercial printers• From April 1, GPL to increase rebate to consumers from

10 % to 15%• Reduction in taxes on new tyres• Tax exemption on all bio-degradable containers used in

the packaging of food and beverages • No excise tax on motor vehicles under 1500cc and less

than four years old; other taxes reduced from 118% to 68.2%

• Income Tax exemption for income earned by Artistes during festivities certified by the Tourism Minister

• Restriction of the importation of used and/or re-conditioned vehicles to under 8 years old from the date of manufacture to the date of importation to be enforced from May 1, 2016

• Government to support private businesses by cutting bureaucratic red tape

chiLdrEn & EducATion• Introduction of Boats, Buses, Bicycles, Books & Boots

Initiative• $3.2B allocated to University of Guyana• 1,125 tablets for 7th grade students and math teachers in

8 pilot schools under Secondary Education Improvement Project

• 450 hinterland students to benefit from Hinterland Scholarship Programme

• 700 children in 22 residential care institutions to be returned to their parents or provided with a family-like setting

• 28,000 pairs of footwear for students in hinterland & riverain communities

• $424.2M for school uniforms; more than 204,000 students to benefit

• $1.9B for National School Feeding Programme; more than 7,000 hinterland students to get hot meals

• National Cultural Policy to be implemented

FAmiLy, youTh, ThE ELdErLy & disAbLEd• Old age pension increased to $18,200 from April 1; 50,000

pensioners to benefit• Public Assistance increased to $7,300 from April 1; over

9,600 persons to benefit• From April 1, citizens 65 years and older to receive free

driver’s licences• From April 1, citizens 65 years and older only required to

pay Airport Security Tax of $1,500 when travelling overseas on a Guyanese passport

• Commission of Inquiry into Suicide to develop a Prevention Plan of Action

• Launch of National Early Childhood Development Sensitization Programme for parents and caregivers to provide knowledge and skills to support early learning

• Development of a National Policy for children who need alternative care

• The Family Commission & Child Care Protection Agency to create family-friendly and educationally-interactive child-friendly spaces at which there will also be support for families with children with developmental disabilities

• Youths to be trained in literacy and numeracy, counselling and guidance and small business development

• National Gender Policy to be launched this year• Gender responsive processes to be strengthened so that

women and men can participate equally in development efforts, and access and benefit from country’s resources

communiTiEs, inFrAsTrucTurE, hEALTh & PubLic sEcuriTy • Upgrade of existing housing schemes to include

electricity and potable water • $3.1B for ICT Access and E-Services for Hinterland,

Poor and Remote Communities Project• New wells for Vergenoegen and Lima Sands; ground

storage facility to be installed in Sophia • New housing developments for Perseverance,

Stewartville, Cummings Lodge, Prospect, Williamsburg and Amelia’s Ward

• $14.4B for upgrade, expansion and rehabilitation of national network of roads and bridges

• $89M for the expansion of GPHC Maternity Unit• $1.6B for phased state-of-the-art waterfront

development targeting Kitty, Kingston, Stabroek, Vreed-en-Hoop, Supenaam and Skeldon

• Rehabilitation of water treatment plants at Cotton Tree and Bartica; 11,000 citizens to benefit

• $2.3B to upgrade West Coast Demerara Road, from Parika to Vreed-en-Hoop

• $4.2B to develop 4 communities identified to be upgraded to townships- Mabaruma, Bartica, Mahdia and Lethem

• Completion of Haags Bosch Sanitary Landfill and upgrade of sanitation facilities in six townships

• $1.9B for state-of-the-art Specialty Surgical Hospital at Liliendaal, ten-bed cardiac theatre and intensive care unit at the GPHC

• $5.0B for reconstruction of Sheriff Street;• $6.72B for roads in Bartica, Mahdia, Ituni/

Kwakwani, Puruni/Itaballi, Mabaruma and Port Kaituma/Baramita and Sophia ring road

• Procurement of new river transport vessels and dredge to desilt the Demerara River

• $1.3B for rehabilitation of Bartica stelling and goods wharf at Kingston and dredging of Demerara and Essequibo Rivers

• $5.2B for development of air services industry, and expansion of CJIA International Airport

• $2B for upgrade of airstrips at Eteringbang, Annai, Paramakatoi, Kurupung, Kato, Kopinang, Monkey Mountain

• $6M for sea and river defence programmes • Increased national water delivery through

resuscitation of the National Water Council, Non-Revenue Water Reduction Programme and Dakoura Creek Watershed Protection Plan

• $5.6B for new water treatment plants at Friendship, Hope Estate, Bush Lot, Leguan, Bartica, Port Kaituma, Mabaruma and other locations in Regions 2 and 6

• $319M for Solid Waste Disposal Management Programme

• Construction of Sanitary Landfill site in Bartica• Cohesive communities to be established with

green spaces, parks and recreational facilities • $644M for to provide housing subsidy for

construction of houses and replacement of roofs in Regions 1 and 9

• $2B for drilling of new wells at Uitvlugt, Diamond and Sheet Anchor

• $4B to improve access to water countrywide including Mahdia, Mabaruma, Victoria, Lusignan and Albouystown; 18000 citizens to benefit

rEPAirinG PubLic inFrAsTrucTurE & buiLdinG susTAinAbLE communiTiEs

GrowthStimulating rEsTorinG conFidEncE

• Modernization of Primary Health Care facilities at Bartica, Suddie and West Demerara Regional Hospitals

• Mental Health Secretariat to offer training and services to professionals and those seeking mental health services

• $6.5B for drugs and related medical supplies to address the expanding range of services given to citizens at Public Health Facilities

• $1B for purchase and maintenance of medical equipment

• Modernization of Old Age Pension System through the establishment of an electronic payment system in all ten Administrative Regions by 2017

• Installation of ramps and stair lifts as well as painting of yellow borders on stairs to guide the visually impaired at public and private buildings under the Ramps and Yellow Border Project

• Promotion of inclusiveness of persons with disabilities through the production of three legislative documents in Braille, namely: Trafficking in Persons Act (2005), Protection of Children’s Act (2009) and the Sexual Offences Act (2010)

• Persons with permanent disabilities to be issued a one-year Public Assistance booklet to facilitate receipt of their benefits during the year without interruption or delays

• Management of NIS to target delinquent businesses and employers, in order to recover the $1.3B in arrears owed to the Scheme

• Psychiatry programme to be introduced at University of Guyana

hEALTh, ThE ELdErLy And PErsons wiTh disAbiLiTiEs

• Satellite centres for Kwakwani, Kamarang, Moraikobai and Charity to increase trained teachers in the hinterland and riverain areas

• $4.3B for construction, rehabilitation and repairs to Kato Secondary Complex, South Road Nursery, Peter’s Hall Primary and Golden Grove and Aurora Secondary Schools

• $80M for accommodation for hinterland teachers• Recorders for 800 Grade 3 pupils; school’s music

programme expanded to 80 primary schools up from 20 schools

• $2.2B for equipping and upgrading technical institutes and training centres

• 800 persons to be trained in information technology, electrical installation and air condition repairs, and motor repairs

• National Youth Policy completed • Secondary school teachers and students to be

trained to identify persons at risk for self-harm• Establishment of a permanent funding structure for

entrepreneurship and micro-lending for persons under 30 under Youth Investment Fund

• Youth training facilities to be upgraded• $25M for a Centre of Excellence in Information

Technology for ICT professionals and knowledge workers

• Integrated Crime Information System (ICIS) • End GTT’s monopoly over international voice and

data transmissions and domestic wireline service• Legislation governing electronic transactions

and digital signatures as well as privacy and data protection to be tabled in Parliament

EducATion, youTh & icTs

• $9B for Guysuco’s recovery and modernization programme

• $20.3B for farming and agro-processing to grow the economy and create employment through food security, fibre and nutritious food, fuel production, fashion and health products, furniture and craft

• $598M to enhance diversified agriculture in the hinterland, riverain communities and the intermediate and Rupununi Savannahs

• Establishment of research, training and extension facilities in Ebini, Hosororo, Manari and Bina Hill

• Live stock production industry to be reenergised through milk pasteurization plant and construction of Agricultural station in Region 9

• Fisheries sector to attain Marine Stewardship Certification, implement Vessel Monitoring System on all trawlers and enforce no-trawl zones and harvest control rule

• Government to support sustainable aquaculture and inland fisheries sector with research and promotion of new marketable species

AGricuLTurE

• $4B to support the Plan of Action for Hinterland Development

• $280M to promote economic prosperity, tourism development and preservation of the indigenous cultural identity

• 211 Indigenous communities to benefit from grants to build village economies and fund eco-tourism projects, support women’s groups, and construct community centres

• New dormitory to be built at Liliendaal for hinterland students

• Buses to provide transportation for hinterland students

• $89M for uniforms for 30,000 students• $2B for establishment and improvement of

infrastructure in hinterland regions; $1.7B for rehabilitation and surfacing of roads in Mahdia, Bartica, Ituni, Kurupukari, Tabatinga and Port Kaituma

• Extension of electricity systems in St. Cuthbert’s Mission, Orealla, Siparuta and Culvert City under the Hinterland Electrification Programme

• Extension of frequency of national radio and television to Indigenous communities

• Bina Hill Institute to be supported• 1000 hinterland youths to be trained in

garment construction, carpentry, joinery and entrepreneurship under $1B Hinterland Employment and Youth Service (HEYS) project

our indiGEnous PEoPLEs & hinTErLAnd dEVELoPmEnT

EnErGy

• Construction of 4 mini-hydro power stations at Kamaira, Kumu, Tumatumari and Tiger Hill

• Rehabilitation and operation of Moco Moco Hydropower Scheme to supply power to the Lethem Power Company

• Re-development of Tumatumari Hydropower Scheme to supply Mahdia with electricity at low rates

• $2.5B to improve GPL’s operational management capabilities

• 830 km of the main distribution network to be rehabilitated to reduce losses and improve safety and reliability

• Government to examine un-served areas with a view of providing electricity to residents

• US$50M wind farm at Hope Beach to provide an additional 25 megawatts of power to the national grid and contribute to lower electricity tariffs

• Exxon Mobil to undertake further exploratory drilling of the Liza Well

• Petroleum Prospecting Licence and Production Sharing Agreement signed with Tullow Guyana B.V. and Eco (Atlantic) Guyana Inc. for Orinduik Block

• Sustainable management of the forestry resources to continue through community training and capacity building targeting 400 persons

PubLic sEcuriTy, businEss & inVEsTmEnT

• $24.6B for the development and modernization of the security sector

• US$15M for Citizen Security Strengthening Programme to contribute to reducing crime and violence

• IDB to support Anti-Money Laundering and Financing of Terrorism initiatives in national risk assessments and capacity building and regulatory reforms among others

• Financial Intelligence Unit (FIU) to be restructured• Government to implement the Single Window

Automated Processing System (SWAPS) to link licensing bodies to the Custom and Trade Administration to facilitate the sharing of information and enhance the efficiency

• Establishment of a Help Desk to act as a single point of contact for information and advice for businesses, traders, and the Government

• Government to reduce bottlenecks in accessing finance through the implementation of the Micro and Small Enterprise Development (MSED) initiative

• 400 entrepreneurs from the mining and forestry sectors drawn from the 10 administrative regions to be trained in small business development

• GO-Invest to increase engagements with the Diaspora to promote re-investment at home

• 160 new investments worth a total of $11B to be pursued this year

• Industrial estates at Belvedere and Lethem to be upgraded or built to facilitate business ventures in manufacturing, woodworking and fabrication; 3000 new jobs to be created

• Introduction of a graduated, specific rate system for the collection of excise tax on alcohol based on the alcoholic strength

• Amendment to the Financial Administration and Audit Act to exempt diplomatic, consular, international, charitable and non-profit organizations, semi-autonomous agencies, government departments and public corporations from the payment of want-of-entry charges, stamp duty and environmental tax

• Amendment to Income Tax Act to allow the Commissioner General to apply a refund towards outstanding taxes, levy, interest or penalties payable by any person and refund any excess remaining to the person

• Bank of Guyana (BOG) to license cambios located outside of Georgetown to facilitate businesses and individuals who reside in rural, hinterland and other remote or isolated areas

• BOG to conduct a study on implementing deposit insurance in Guyana, with the goal of rolling out a deposit guarantee scheme by 2017

• BOG to examine feasibility of agency banking to allow local non-banks to provide some financial services and potentially improve access to banking in rural communities

• BOG to expand mobile money to allow more people to save and transfer money using their phones, thereby reducing the transaction costs

TAx And FinAnciAL sEcTor rEForm

ban on styrofoam used

for packaging beverages,

food and food products

Re-introduction of a broad-based,

non-discriminatory

environmental tax

increase in pensions payable to ex-employees of Guyana

Telecommunications Corporation effective

from April 1, 2016.

increase in rebate granted by GPL and Reduction

in prices of fuels

Excise tax reduced from 50% to

10% onmotor vehiclesless than four years old, between 1500cc and under 2000cc. Tax rate of 152.3% reduced to

85%

Ban on the importation of used tyres for cars,

suVs, pickup trucks and mini buses except for

those in the Agricultural and mining sectors

income Tax threshold raised to $660,000 from $600,000;

more than

68,000 workers to

benefit

meaSureS

2014 2015 2016 budGET

sEcTorAL ExPEndiTurE

EducATion housinG wATEr And sAniTATion

hEALTh sEcuriTy

inFrAsTrucTurE (aiR, maRine, sEA, riVEr And drAinAGE And iRRigaTion)

hinTErLAnd dEVELoPmEnT

inFormATion TEchnoLoGy, AGricuLTurE diVErsiFicATion And PowEr GEnErATion.

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Produced by the Ministry of finance

49 Main & urquhart streetsGeorGetown

Guyana

592-227-3992 | 592-225-6088 | 592-227-7935httP://finance.Gov.Gy/

Economy rEcords rEAL GrowTh oF 3.0 %

incrEAsEd ProducTion in suGAr And ricE indusTriEs

mininG And quArryinG sEcTor GrEw by 9 %; GoLd by 16.4 %

PErcEnT

imProVEd dEFiciT oF ThE bALAncE oF PAymEnTs

ThE ExchAnGE rATE rEmAinEd sTAbLE AT G$206.5 PEr us$1

achievemenTS