IN a matter of hours, the 2023 National Budget will be read in the National Assembly by the
Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni
Singh. And within hours, Guyanese should understand more of the government’s priorities.

A national budget is important because it identifies spending priorities and illustrates what
projects and/or programmes the government will be pursuing. The budget, arguably,
reflects what the government of a country prioritised and is interested in pursuing- whether that
means more relief plans for people, more support for private growth and development, or
otherwise.

Guyana’s recent budgets have outlined efforts to provide some relief to people while
simultaneously supporting (or incentivising) the local private sector. Relief efforts included
cash grants and increasing support schemes (like the old age pension and public assistance),
while private sector players were incentivised by tax cuts or budgetary measures that made
doing business easier.

Both of these efforts were particularly necessary given the social and economic realities
Guyana, like the rest of the world, grappled with. That included the burdensome COVID-19 pandemic
and its ensuing economic disruptions and, later, the Ukraine/ Russia crisis and its
complications.

The recent budgets, notably, have also illustrated what the current administration touts
as its transformation agenda. That includes massive, much-needed infrastructure projects to
boost connectivity, transportation, and even sea defence; larger investments in making
healthcare and education more accessible; and support for the expansion of productive
sectors like agriculture and natural resource use.

So, I expect that similar initiatives will be outlined in the upcoming budget.

What has been and continues to be a consideration, however, is whether government
spending is effectively meeting the real needs of the people. That means improving people’s
standard of living and quality of life and (because it is most topical now) helping people
surmount imported inflation.

It should come as no surprise to anyone when interest groups, including, but not limited to
workers’ unions, lobby for salary increases, greater social relief packages and even more
responsive social nets for society’s most vulnerable. These are clamoured for because of the
aforementioned challenges, the real, concerning issues people deal with every day. With
Guyana’s budgets becoming progressively larger each time, and the economy experiencing
remarkable growth rates largely on account of its nascent oil and gas sector, the
government must continue to prioritise spending on providing relief to people.

Certainly, this column may do very little to influence any considerations in Budget 2023
(given that it will be read on Monday and all). Yet, for what it's worth, I think the emphasis
should be placed on bridging many of the inequalities that exist locally and improving the
services people are entitled to. Economic growth and expansion, though needed to fund
social needs and relief, should be leveraged to improve people’s lives and livelihoods. I hope
Budget 2023 reflects this.

Before I end this column, there’s also something else I wanted to point out.

Last year’s National Budget was the first one to be financed (at least in part) by oil funds.
This year’s National Budget is historic for another reason: it should be financed
(again, in part) by oil funds and payments from Guyana’s new special carbon credits scheme
where the country is paid to continue protecting its abundant forest resources.

Last Tuesday, the Hess corporation made its first payment of US$75 million (or GY$15.6
billion) to Guyana under the carbon credits scheme. Through this scheme, the oil company
will pay Guyana a minimum of US$750 million for continuing to save its forests, thereby
trapping harmful carbon dioxide. In investing in Guyana’s forest protection efforts, Hess
hopes to offset its own harmful, environmentally-unfriendly carbon emissions and help
mitigate the ongoing climate crisis.

While this scheme alone, in my opinion, is noteworthy, it is important to consider that 15
per cent of whatever proceeds are earned through the sale of Guyana’s carbon credits will
be allocated to Indigenous communities. Based on local media reports, there are some
lingering questions about how that fund will be distributed to and used by the Indigenous
communities in accordance with their village plans. With the funding secured and the
National Budget is about to be presented. However, it can be argued that there is a good
opportunity for communities to identify what specific needs require attention and, perhaps,
use the allocation to satisfy those needs (or at least some part of those needs, as idealistic
as this sounds).

So, like many others, I will await this year’s budget with much anticipation, and I hope that
the booming Guyanese economy means that the country is also prioritising efforts to
support its people.

If you would like to discuss this column or any of my previous writings, please feel free to
contact me via email: vish14ragobeer@gmail.com