Opposition demands comprehensive response to increased inflation rates

Sep 10, 2022 News

…says public servant wages should be increased above 25 percent

Shadow Finance Minister, Juretha Fernandes

Economic and Youth Policy Advisor to the Leader of the Opposition, Elson Low

Kaieteur News

By Davina Bagot

With an estimated inflation rate of 4.9 percent recorded at half year – surpassing the year end prediction of 4.1 percent – the APNU + AFC Opposition believes that the PPP/C Government must respond in a comprehensive manner that allows all consumers to feel relief from the prevailing high cost of living.

During a Press Conference on Tuesday, the Economic and Youth Policy Advisor to the Leader of the Opposition, Elson Low, highlighted that the recently released Mid-Year Report indicates that Guyana’s first oil-based budget falls short of its projections with the wider population yet to receive assistance to cushion the rising inflation rates.

He explained, “When one examines food alone, Guyana saw food prices rising by some 11.6 percent in 2021. By June 2022, the Half-Year Report informs that food prices have increased by a further 8.1 percent. On the current trend, food prices by Christmas 2022 will likely be 25 percent higher than 2020’s Christmas.”

To this end, he told members of the media that a salary increase of no less that 25 percent should be instituted for public servants, as a fraction would amount to little or no impact on their spending power.

He was keen to point out that none of the measures in the 2022 budget have worked. According to him, “Only $1.8 billion of the $5 billion budgeted for cost-of-living relief has been used. This is the cluelessness and stinginess of the PPP which will deny the Guyanese people a decent quality of life. We reiterate our call for an increase in the salaries for public servants well above the inflation rate, grants for farmers to help boost production, fuel vouchers for canter and bus drivers to bring transportation costs down, and an expanded school feeding programme, among other short-to long term measures.”

Low went on to argue that Guyanese should note that with the price of crude oil remaining above US$100 per barrel and Government projecting a 32.5 percent increase in deposits to the Natural Resource Fund (NRF), the administration has merely committed to “the continued monitoring of cost of living throughout the rest of the year.” The Economist said, “This is unacceptable and a clear indication that the PPP/C does not care for the Guyanese poor.”

On Friday, the Alliance for Change (AFC) spokesperson on Economics and Shadow Finance Minister, Juretha Fernandes, also offered her perspective on the inflation rate. Fernandes joined in calling for the incumbent administration to take immediate measures to address the situation.

For one, she explained that in 2015, the PPP was clamouring for the then Coalition Government to increase public servant wages by 50 percent – at a time when the inflation rate was much lower.

To this end, the Shadow Finance Minister argued that the Government must honour its own request.

Similarly, Vice Chairman of the AFC, Ricky Ramsaroop, argued that the spontaneous handout of cash must cease and be replaced with subsidies that would benefit each Guyanese citizen. For instance, Ramsaroop urged that University of Guyana (UG) fees be waived, while citizens should enjoy fuel subsidies.

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