IN a significant step towards the transformational development of Guyana, the National Assembly approved the motion to increase the country’s external and domestic debt ceilings. The motion, proposed by Senior Finance Minister Dr. Ashni Singh, seeks to raise the domestic public-debt ceiling from $500 billion to $750 billion, and the external borrowing ceiling from $650 billion to $900 billion.

Amidst the debate on economic development and debt sustainability, Dr. Singh emphasized the government’s commitment to delivering development to all Guyanese in the shortest possible time. He cited the People’s Progressive Party/Civic’s (PPP/C’s) track record in effectively managing debt sustainability, highlighting how they steered the country from bankruptcy to a position of economic viability.

While the opposition showed resistance and skepticism towards the debt-ceiling increases, Minister Singh contended that responsible borrowing is essential for the country’s progress. He defended the notion that debt can be a tool for development and growth when used wisely. Investments in infrastructure, social services, and projects such as the gas-to-energy initiative, hospitals, schools, and roads have demonstrated the government’s commitment to improving the lives of its citizens.

It is essential to recognize the contrast between the PPP/C’s approach and the economic policies of the previous administration, which lacked fiscal prudence and effective project execution. The current government’s focus on developmental projects, asphalted roads, and transformational initiatives has been evident over the past three years.
The increased debt ceilings are not about recklessly borrowing, but rather a strategic move to facilitate engagements with institutions and seize opportunities for further growth. It is a means to deliver on the government’s promise of development for all Guyanese. Responsible debt management is key to ensuring a sustainable future for the country.

While the opposition continues to object to the motion, their resistance seems to be at odds with progress and development in Guyana. It is vital for all parties to come together and support initiatives that improve the lives of citizens and drive the country forward.
The government’s plan for accelerated development, investing in infrastructure, and prioritizing the welfare of its people is commendable. As a people-centred government, the focus on development for the benefit of all is evident in their approach.

Nevertheless, the approved motion to increase the debt ceilings marks a crucial step in Guyana’s development journey. The PPP/C’s commitment to responsible borrowing, prudent debt management, and strategic investments bodes well for the country’s future. It is time for all stakeholders to unite and work together to build a prosperous and sustainable Guyana for generations to come.

Since GDP represents the value of all products and services produced by a country over a given period, it shows how much a country owes (i.e., its debt) in comparison to how much it produces to pay those debts.
Guyana’s rapid economic growth over the last few years, along with high-growth projects for the years to come, will enable the government to appropriately manage its debt, even if it will be borrowing more money.