Guyana’s increasing debt

According to the Bank of Guyana Quarterly Report, Guyana’s total public debt (domestic and external) has increased by 3.9 percent (US$2,692M) for the first quarter of the year, compared to the last quarter that ended December 2020. This is not a healthy or welcoming sign. Government has to be attentive that they are passing on the burgeoning financial burden to future generations that have not created it. Government spending also suggests shortsightedness or an uncaring attitude towards future generations. Living life and making decisions, particularly at government level, require proper planning.

Development is not only about today, splurging and living in the moment.  Decisions being made in the present should be made cognisant of the implications for the future. Guyana is incurring expenses on things that are not considered priority. Take for example, the buying of expensive vehicles for government officials. This is unnecessary expenditure and a reminder of Dr. Cheddie Jagan’s admonition of living in a donkey cart economy on a Cadillac lifestyle.

The Guyana health care system is in shambles. The system cannot adequately respond to the novel coronavirus (COVID-19) which has dire implications for the economy, labour and production.  In the presence of the national challenge there remains no visible national response. Factors such as valuing the contributions of the wide cross section are being ignored. A partisan and alienated approach to involvement and accepting only ideas from supporters or allies would not aid the national response needed to combat the deadly virus and return normalcy to society

Any financial decision presently taken will impact the future, favourably or adversely. Decisions that would incur expense and debt should not be made because they look good or feed an image or ego. After all, it is the taxpayers’ money being spent and used to repay the debts and the taxpayers deserve respect. Borrowing is accepted as necessary in government spending. But borrowing does not mean the government should not act prudently.   For instance, the beleaguered Guyana Sugar Corporation (GuySuCo) remains a financial burden to taxpayers. The company has been given a blank cheque by the government to spend.  Thus far, GuySuCo has spent tens of billions of dollars to have Guyana produce sugar for foreign consumption at more than 100 percent of what it is being sold for on the international market.

As good money is being thrown behind unnecessary purchases and on uneconomic sugar production for foreign consumption, the government will have to borrow to fund other expenses of the state.  The burgeoning debt is a signal to Guyanese and the Government of the importance of rethinking financial management. It is important to prioritise what needs to be done, what is considered unnecessary, frivolous and unworthy of spending and incurring debt. Guyana could do with the redirecting of the tens of billions of dollars diverted to GuySuCo to engage in productive endeavours such as fixing the health and education systems. These would be worthwhile investments because there is a need for an educated and healthy society to respond to the opportunities for modern and future development.