-says APNU+AFC wants to ‘stagnate’ Guyana’s progress

AS Guyana stands on the precipice of transformation, the passage of the amendment to the National Resource Fund (NRF) Act is a strategic move towards leveraging Guyana’s economic growth for accelerated national development.

This pivotal legislation, as expounded by Attorney-General and Minister of Legal Affairs, Mohabir Anil Nandlall, S.C., during his weekly show, ‘Issues in the News,’ marks a critical juncture in the country’s journey towards leveraging its oil wealth for the benefit of its infrastructure and social services.

The act was amended last Friday in the tabling of the Fiscal Enactments Amendment Bill, following the passage of the historic $1.146 trillion budget by the National Assembly.

Nandlall passionately outlined the government’s rationale behind amending the NRF Act, which is at the heart of this legislative overhaul. He explained that by increasing the debt ceiling the amendment enables the government to harness the country’s burgeoning oil revenues more effectively.

“Our budget is now many times more than what it used to be. We are now classified among the 10 fastest-growing countries in the world,” Nandlall proudly stated, highlighting that Guyana’s enhanced ability to earn and repay debt justifies the strategic decision to borrow more for development.

Drawing parallels with the economic trajectories of developed nations, Nandlall argued, “I don’t know of any country that has developed from one stage to another stage without borrowing.”

He cited the United States as an exemplar of leveraging debt towards growth, challenging the stigma associated with borrowing while cautioning against unsustainable, reckless financial practices.

Addressing criticisms from the opposition, notably the People’s National Congress Reform-led A Partnership for National Unity Coalition (PNC/R-APNU), Nandlall contrasted the current administration’s transparent and accountable approach to borrowing with past instances of mismanagement.

He accused the PNC of hindering progress, stating, “They have done so repeatedly in government and out of government.”
Central to Nandlall’s discourse was the transformative potential of the Fiscal Enactments Amendment Bill.

He illustrated this through tangible projects like the New Demerara Harbour Bridge, the Corentyne River Bridge, and the Gas-to-Shore Project, all emblematic of the government’s commitment to advancing the nation’s infrastructure.

Furthermore, he highlighted the impressive reduction in Guyana’s debt-to-GDP ratio, from 617% in 1991 to a mere 24% today, well below the international standard of 50%.
This, Nandlall argued, is a testament to Guyana’s fiscal prudence and its robust economic foundation, enabling it to pursue ambitious development projects.

In a compelling analogy that resonated deeply with his audience, Nandlall likened Guyana’s current state of development to an old, dilapidated house that has been in a family since 1966.

He vividly painted the picture of a home beset with structural woes: a leaking roof, windows on the verge of collapse, floors giving way, and a lack of basic amenities like proper water and electricity. The fence is down; the stairs are treacherous, yet, for years, the financial means to address these issues have been out of reach.

Nandlall’s analogy struck a chord as he posed a critical question, highlighting a pivotal moment of decision-making faced by the homeowner—and, by extension, the nation. If one suddenly finds themselves with $100 million in the bank, would they continue to endure the hardships imposed by their crumbling abode, or would they seize the opportunity to make comprehensive repairs, thereby transforming their living conditions?

“Why keep the money in the account when we can use it to accelerate the developmental agenda and the transformational agenda of our country?” he posited, stressing the importance of investing in the nation’s future now rather than delaying progress.

Through this narrative, Nandlall underscored the government’s commitment to not just patching up the old but rebuilding and advancing. He argued for the strategic use of Guyana’s newfound oil wealth, not to be hoarded but invested back into the country, to mend the proverbial house that is Guyana’s infrastructure and social fabric.

The Attorney General explained that the Fiscal Enactments Amendment Bill goes beyond merely raising the debt ceiling. It embodies a holistic approach to development financing, ensuring a balance between immediate withdrawals and long-term savings from the NRF.

This approach is crucial for executing an expanded Public Sector Investment Programme (PSIP) and strengthening social safety nets.

The bill’s amendments to key fiscal laws, such as the Income Tax Act and the Value-Added Tax Act, aim to alleviate the financial burden on citizens, enhancing their access to essential goods and services.
Nandlall explained that this will help catapult Guyana into a new era of prosperity. He added that the opposition’s critique stems from a desire to “stagnate the country,” a stance he vehemently opposes.