IN recent political discourse, the opposition’s economic advisor has sparked controversy by suggesting that an APNU-AFC government could offer higher salary increases to citizens using the interest earned from the Natural Resource Fund (NRF). Vice President Dr. Bharrat Jagdeo, however, has vehemently debunked this notion, shedding light on the intricacies of the NRF and cautioning against unrealistic promises.

At a recent press conference, Dr. Jagdeo dismantled the opposition’s argument, emphasising that the interest earned from the NRF, with its prudent investments in safe instruments, would not suffice to cover the costs of substantial salary increases.

Explaining the financial dynamics, he revealed that the interest would amount to approximately GY$2.7 billion, significantly short of the GY$7.9 billion required for the 6.5 per cent salary increase implemented by the current government in 2023.

Dr. Jagdeo underscored the importance of understanding the purpose of the NRF, stating that it is not designed to exhaust every cent earned in interest. He highlighted the government’s commitment to transparency and accountability in managing the NRF, as evidenced by the amendments to the NRF Act in 2021.

The revised legislation mandates annual parliamentary approval for withdrawals, ensuring proper scrutiny and oversight.

Drawing historical parallels, Dr. Jagdeo cautioned against reverting to past practices that led to a downward spiral for Guyana. He criticized the opposition’s purported approach, linking it to previous administrations that mismanaged funds, resulting in the sacrifice of development opportunities in crucial areas such as healthcare and education.

In the context of economic challenges, Guyana has managed to keep its inflation rate at a commendable 1.9 per cent for 2023, a feat highlighted by Dr Jagdeo. In comparison to the global average of 4 to 5 per cent, this achievement showcases the government’s competence in addressing economic phenomena, especially in the face of escalating global prices and uncertainties.

Addressing concerns about the cost of living, Dr. Jagdeo outlined various measures taken by the PPP/C government to alleviate the burdens faced by citizens. These include the removal of VAT from essential services, constant increases in old-age pension and public assistance, reinstatement of cash grants, support for home construction, and the creation of part-time jobs.

The Vice President underscored the importance of a $5 billion allocation earmarked for interventions under Budget 2022, demonstrating the government’s commitment to addressing the cost-of-living problem. He highlighted the extension of measures, such as adjusting freight costs to pre-pandemic levels, and a range of tax benefits to offset the impact of increased living expenses.

In addition, Dr. Jagdeo affirmed the government’s dedication to presenting a national fiscal plan to the National Assembly in January. The plan, shaped around two primary pillars, aims to increase disposable income for citizens and enhance Guyana’s economic and social infrastructure. Measures such as salary increases, tax reductions, and employment opportunities will be pivotal in achieving these objectives.

Meanwhile, the upcoming budget aligns with the PPP/C Administration’s 2020 manifesto, which laid the foundation for prosperity for all. The successful passage of a $781.9 billion budget in February 2023, the nation’s largest ever, reflects the government’s commitment to policies that enhance disposable income and prioritise the welfare of its citizens.

As Guyana navigates its economic landscape, the need for realistic policies and a commitment to sustainable development must be acknowledged. Government’s track record in managing economic challenges and its vision for a prosperous and equitable future for all Guyanese citizens is very tangible.