2023 Budget debates wrap up, Ram and McRae say it’s the largest Budget deficit ever

Five days of debates for the $781.9 billion 2023 National Budget ended last Friday at the Arthur Chung Conference Centre, Liliendaal, East Coast Demerara, where parliamentary sittings take place.

Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh, in his closing presentation, said the budget debate is an essential aspect of the country’s annual economic cycle as he reiterated the benefits the government thinks will come from the allocated spending.

However, the  main Opposition, A Partnership of National Unity and Alliance for Change (APNU+AFC) countered that the Budget, in its present form, will not deliver for ordinary Guyanese, and drew attention that the Government has reduced spending in critical areas such as sea defense protection.

The  Opposition parliamentarians, during the debate, also called on the Government to release the information on the status of oil recovery and when the nation is expected to receive 50/50 profit sharing.

The budget is the biggest in Guyana’s history and the government said it is fully funded with no new taxes.

However, Ram and McRae in its analysis (Stabroek News, January 22, 2023) said whilst the Budget is the largest with the generous helping of funds from the Natural Resources Fund and some $31,275 Million from the sale of carbon credits, correspondingly, it was also the largest budget deficit ever.

The accountancy firm also chided the government for not raising the minimum wage and using cash grants as a “principal tool of poverty reduction.” That the world’s fastest growing economy is being sustained by one of the lowest minimum wages in the world sits uncomfortably with each other, said the organisation.

The Opposition also raised the issue of pension and public assistance increases saying they are miniscule compared to the revenue from oil and gas, and citizens offsetting increased spending for goods and services resulting from the high cost of living. The Opposition has also called for an increase in the minimum wage and paying public servants more. The Budget did not cater for that.

In the meanwhile, the trade unions have been calling for the government to respect collective bargaining and negotiate with them to increase wages and salaries and improve working conditions.  The Opposition has supported the trade union’s calls.

The Guyana Public Service Union (GPSU) has taken the government to court, requesting the court direct the government to respect collective bargaining as outlined in the Guyana Constitution, Article 147, and International Labour Organisation Convention which the government is a signatory of. The court is yet to rule.