Dear Editor,

SINCE the restoration of democracy in 1992, successive People’s Progressive Party/Civic (PPP/C) governments have consistently used fiscal policy not as a tool of political expediency, but as a strategic instrument to promote long-term national development. This approach has successfully delivered tangible, measurable outcomes for the Guyanese people across a range of critical areas — economic growth, job creation, poverty reduction, and improved access to basic services.

Importantly, these investments were never ad hoc but firmly anchored in the various development strategies developed by PPP/C governments since 1992, such as the National Development Strategy (NDS), Poverty Reduction Strategy Papers I & II (PRSPs), National Competitiveness Strategy, and Low Carbon Development Strategy (LCDS).

Aligned with these policy documents, successive PPP/C governments have consistently allocated substantial capital investments to construct, rehabilitate, and expand roads, bridges, ports, energy supply, and other critical infrastructure. These projects have not only improved connectivity for ordinary citizens but also played a key role in “crowding in” private investment—both domestic and foreign—by narrowing the infrastructure gap that constrained private sector growth for many decades.

The increase in productivity in key sectors and robust sectoral growth rates recorded over the past four years provide sufficient evidence of the efficacy of the government’s capital expenditure. This must be contrasted with the capital spending of the PNC during the 28 years, which correlated strongly with negative economic growth rates. In other words, the capital spending of the PNC during this period undermined economic growth.

The multiplier effects of capital spending by successive PPP/C governments are most visible in the construction sector, which has emerged as a key driver of non-oil economic growth rates and employment opportunities. As the President explained in his speech at the building expo, the construction sector contributed approximately 19 percent of the nominal non-oil GDP and created tens of thousands of jobs over the past four years.

Beyond infrastructure and macroeconomic performance, government spending in the social sectors—including health, education, housing, water, and sanitation—has been a major factor in reducing multidimensional poverty since 1992. Today, tens of thousands of Guyanese are homeowners, while more citizens have access to reliable healthcare and enjoy improved access to education and potable water. Again, these outcomes are not accidental but are a direct result of sustained, strategic investment in the social sectors.
Housing policies, for example, have been deliberately designed to make homeownership more affordable and attainable for low- and middle-income families. The construction, expansion, and rehabilitation of hospitals, health facilities, and schools are intended to make world-class education and healthcare more accessible to our citizens, which in turn will improve the standard of living. Equally important is the fact that these investments in the social sectors have yielded long-term human capital development, as reflected by the continuous improvements in the country’s Human Development Index. In other words, our spending in the social sector is not just about economic growth, but about enhancing the overall quality of life for our citizens.

Another significant spinoff effect of public capital spending has been job creation. Over the past five years alone, more than 60,000 jobs have been created, with over 70 percent of these jobs created in the non-oil economy. Again, this is clear evidence that the spending by the PPP/C government is delivering inclusive growth, that is, economic growth which translates into benefits for all Guyanese.

Finally, it is worth highlighting that while successive PPP/C governments have consistently expanded expenditure, it has done so without straying from the principles of fiscal prudence. Indeed, successive PPP/C governments were able to increase spending without accumulating unsustainable debts or incurring unhealthy fiscal balances, as pointed out by many international financial agencies and academics.

As Guyana moves further into its new era of development, including the management of oil revenues, it is essential for citizens to understand the importance of electing leaders who will continue to manage public funds in a responsible manner.

The announcement by the opposition leader at the launch of his party’s manifesto to curtail spending and deny the private sector opportunities will not only be injurious to the private sector but also to every Guyanese. This approach, applied by the APNU-AFC government during the 2015-2020 period, was responsible for the loss of 30,000 jobs, the collapse of key economic sectors (including the forestry sector, bauxite industry, agriculture sector, and construction sector), and the reversal of some of the development gains.

Unless we wish to return to those dark days, the choice is as simple: vote for the political party that has a proven track record of deploying public funds responsibly to foster inclusive growth and development, rather than one that would arbitrarily slash public spending and trigger joblessness, stifle our economic momentum, impair wealth creation, and undermine our country’s potential to become one of the most developed nations in the world.

In this regard, we should treat these elections as an opportunity to protect the hard-earned progress our country has made over the past four years and to secure a future of shared prosperity, and not a stage for political theatrics where leaders without vision, any track record, or experience can earn our votes with comical promises and policies.

Yours faithfully,
Kevin Persaud