The National Budget for 2020, referred to as an ‘emergency’ budget, encompassed a variety of fiscal measures designed to quickly revamp the economy. First and foremost, the PSC acknowledges the context in which this budget was prepared – that is, after five months of political turmoil with the national elections which was then compounded by the economic and financial impact of the COVID-19 pandemic. In these respects, the PSC wishes to commend the Government of Guyana for the preparation of the budget in such a short period of time in the given circumstances.
Second, for a country to be without a national budget for nine months into the year; this can also wreak havoc to the economy given that in Guyana’s context, government spending accounts for about 40% of GDP. To this end, governments typically spend money on capital projects such as major infrastructure works, the building of roads, bridges, public health care and education among others. Governments also spend on the procurement of consumption goods and services. Therefore, with the injection of government spending in these areas, this spending helps to sustain local businesses that supply the government with these goods and services as well as the contractors, engineers and the labour force operating within areas where public investments are undertaken whether it’s the construction of building infrastructure or new road networks.