–Jagdeo highlights, welcomes appraisal from international body

THE International Monetary Fund (IMF)’s appraisal of the government’s development plan was embraced by the People’s Progressive Party (PPP) General Secretary, Bharrat Jagdeo.
During a press conference at Freedom House on Thursday, the General Secretary deemed the IMF as a “technically competent” body.

However, the positivity emanating from the IMF’s consultation was not given much prominence in the media, Jagdeo highlighted, underscoring that if it was negative, certain media elements would have been spreading it.
Jagdeo then highlighted the significant credibility of this international organisation compared to those politically-affiliated local critics.

The General Secretary, who is also Guyana’s Vice-President, then reflected on how the PPP had worked Guyana out of the bankrupt ‘black hole’ that the People’s National Congress Reform (PNCR) had plunged the country into.
Jagdeo said: “Where it concerns framework for managing the economy, they’ve made it clear that the framework we are pursuing is a sustainable one.”

The IMF had commended the government for progress in several areas. For instance, they lauded the social transfer policies that have resulted in increased disposable income, and a reduction in Guyana’s poverty rate.
“Staff assesses that social transfer policies implemented in recent years have increased disposable income, and reduced the poverty rate,” the IMF’s 2025 Article IV Mission noted in its concluding statement, which was released last Friday.

Since assuming office in 2020, the PPP Government has invested heavily in the social welfare of Guyanese, while also building out the country’s infrastructural landscape to enable long-term growth and sustained development.
Among the plethora of measures are the re-introduction and increase of the education grant to $55,000 per child; the increase in old-age pension to $41,000; increase in public assistance; targeted cash transfers, including the ongoing $100,000 cash grant initiative, and the grant for persons living with

disabilities; health vouchers and programmes; and the removal and reduction of taxes, along with other targeted tax-deduction measures.
The IMF, as part of its advice to the government, said: “Going forward, additional targeted transfers, integrated into a medium-term fiscal framework, could further support inclusive growth, and help Guyana advance faster towards its sustainable development goal (SDG) of no poverty.”

The government’s financial framework and mechanisms for funding these initiatives were also commended by the IMF.
“Staff commends the authorities’ continued commitment to maintaining macroeconomic stability, ensuring fiscal sustainability, and fostering inclusive growth. While there are no clear signs of overheating, enhancing the close monitoring of macroeconomic developments and continuing to proactively

respond through tighter policies would be essential to ensure that the economy avoids overheating and remains on a balanced expansion path.
“Early in 2024, the Natural Resource Fund (NRF)’s withdrawal ceiling was increased, creating space for a significant increase in capital expenditure, which, in 2024, accounted for more than 12.5 per cent of GDP.

“To ensure intergenerational equity and maintain fiscal and macroeconomic sustainability, it was suggested that the overall fiscal deficit be gradually closed by 2031, followed by a reduction in the non-oil primary deficit over the (conservatively) projected lifespan of oil reserves.

“Given Guyana’s development and investment needs, the fiscal policy stance is appropriate at this stage, and the fiscal deficits should gradually close over the medium term,” the IMF said.

While acknowledging the country’s efforts to modernise its public financial management systems, the IMF advised: “Implementing a comprehensive medium-term fiscal framework with an explicit anchor and an operational target, further modernising public financial management systems, and conducting

regular expenditure reviews to continually assess spending efficiency and effectiveness in reaching the SDGs will also help further strengthen fiscal discipline and transparency.”

Despite significant investments, owing to prudent management by the PPP/C government, the total Public and Publicly Guaranteed (PPG) debt-to-GDP ratio has been reduced from 47.4 per cent at the end of 2020 to 24.3 per cent at the end of 2024.

The government has constantly stressed the importance of prudent financial management, noting that it is focused on sustainable development rather than short-term gains.