–PPP/C administration’s expenditure in line with IDB recommendations, President Ali says
PRESIDENT, Dr Irfaan Ali on Sunday evening highlighted that while members of the opposition APNU+AFC have quite a lot to say in relation to the government’s expenditure currently, it was their limited spending that contributed to a collapse of social sectors during their 2015-2020 tenure.
The Head of State made these remarks during a live statement, where he addressed the comparisons being made between his administration’s expenditure and the former’s.
According to President Ali, the spending on capital projects by the current People’s Progressive Party/Civic (PPP/C) government is aligned with the party’s 2020 Manifesto promises, through which the people of Guyana elected them.
These promises, he noted, were aimed at delivering first-class social services such as improving access to healthcare, quality education and water and sanitation across the country.
“This is where the investment is going; to reduce the infrastructure gap. That is what we have to do to reduce the infrastructure gap; that is what helps to bring equity between regions. Without investment in physical infrastructure, it would not be possible to improve the country’s international competitiveness,” Dr. Ali said.
Noting that this is why moves were made to get rid of the barriers to private sector development and economic growth and expansion, he said that according to the Inter-American Development Bank (IDB), the deficient transportation network stifles economic opportunity in every sector.
“And what did we do to address this; to address the infrastructure gap? The IDB; not the Government of Guyana. The IDB estimated that we will have to invest between US$9.4 billion to US$23.8 billion by 2030 to upgrade the transportation network, expand the energy grid; that is exactly what we are doing,” President Ali said.
The IDB further estimates that these investments should go towards improving water and sanitation facilities, and the telecommunications sector.
This, he said, is “exactly where the PPP/Civic expenditure profile is and what we are targeting”.
On the contrary, the Head of State highlighted that the APNU+AFC’s expenditure profile and the nature of spending during their term in office is what is termed non-productive expenditure.
“Expenditure basically that constituted a bloat in the government system, that constituted what we term the enjoyment of government by the APNU+AFC elite,” he iterated.
Giving an example of this expenditure profile, President Ali said that if one is to look at what was promised and what was delivered to the people under the last administration, it was vastly different compared to the PPP/C. He reminded the nation that just a few months after assuming office in 2015, the then administration secretly gifted their ministers and other officials a 50 per cent increase in salary.
He added that there was limited capital spending between 2015 and when APNU+AFC was booted from office which led to crises in various sectors.
“During their period in government, the limited capital spending contributed to a collapse of the social sectors,” he said while adding that a massive infrastructure deficit haunted the country for years as there was no investments in this area which included the road networks, housing and other critical sectors.
The President further pointed out that during those five years under APNU+AFC rule, the recurrent expenditure outstripped capital expenditure and was in some cases was five times higher.
This profile, he reiterated could not have contributed to improvements in competitiveness, healthcare, housing, education or even catered for major transformative infrastructure during that period.
