GEORGETOWN: The Private Sector Commission (PSC) has warned the David Granger-led A Partnership for National Unity/Alliance For Change (APNU/AFC) coalition Government against its stated intention to withdraw some $60 billion of state funds from commercial banks across the country, which was deposited by the previous People’s Progressive Party/Civic (PPP/C) Administration.
The warning came on the heels of a meeting held between the PSC and members of the business community, where discussions were held on the evident downturn in business.
The PSC said, dealt with matters ranging from employee retrenchment to the sudden increase in crime, spending on Government projects and matters related to how the clearing of goods and the processing of investment agreements are affecting the business community.
The organisation reported that the business community is concerned about the persistent “bottle necks” when conducting business with the Guyana Revenue Authority (GRA), pointing out that the Revenue Authority needed to expand its taxpayers’ base and “focus on the individuals who have been evading taxes for too long”. To this end, it said the Finance Minister Winston Jordan was written to and meetings were held with the top brass of the GRA and the PSC.
“We are of the opinion that this will cause businesses to re-invest in projects, which may allow commercial banks to increase their loan portfolio; thus injecting needed funds into the economy. Additionally, the Government needs to ensure the efficiency of GRA and to restart spending through issuance on contracts,” the PSC said.
The removal of funds from the commercial banks could derail any economic revival.
