Dear Editor,
President Irfaan Ali and the PPP/C administration must be commended for presenting to the nation yet another budget that is people-oriented while at the same time laying a solid foundation for accelerated growth and development. This is the first time the budget has exceeded the one-trillion dollar mark and while much of that is attributable to our petroleum resources, this should not take away from the hard work put in by the government in the mobilization of financial resources from non-oil oil sources including loans and grants to drive the massive infrastructural projects currently underway. The good thing is that the economy is in a much better position to sustain the cost of loans thanks to greater inflows of revenues from oil.
Under the previous PNC regime, the debt burden was one of the highest in the world, with debt serving and repayments consuming nearly the entire government revenues. Very little was left for the provision of critical social services such as education, health, housing, water and for the payment of wages and salaries. In fact, the regime resorted to the printing of ‘paper’ money which fueled inflation to spiraling levels. Guyana at one time had the reputation as one of the most-indebted poor country in the world. All of that has now changed. The country is now on the path of accelerated growth and development never experienced before.
There are some in the political opposition who argue that more money should have gone into consumption rather than on infrastructural works. This argument fails to take into consideration the fact that investments in infrastructure do result in a number of positive externalities such as job creation, enhanced disposable income for businesses and suppliers and an overall impetus to the local and national economy by way of what economists refer to as the multiplier effect. The decision as to how much of the budget to allocate for recurrent expenditure as compared to capital expenditures has to be informed by the overall developmental thrust of the current administration which is to enhance the competitiveness of the economy through cheaper and cleaner energy and also to modernize the economic and social landscape of the country.
The construction of roads, bridges, sea defences and other infrastructural works are a necessary prerequisite towards this end. Development is all about people and the enhancement of their material and cultural life. The huge sums earmarked for education, health, housing, water and infrastructural development are important elements of the holistic developmental paradigm embraced by the PPP/C administration. The fact is that there is no magic wand when it comes to economic growth and social progress. Development is a process that requires the right balance and mix of resources to yield maximum economic and social returns. Credit must be given to the current administration for coming up with a budget which has all the elements of a balanced and people-oriented budgetary matrix.
Sincerely,
Hydar Ally