Budget increases by 41%, but less than 1% set aside for the cost of living relief- Opposition laments

Jan 20, 2023 News

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Kaieteur News – Despite the fact that this year’s budget is 41% larger than the previous one and the Natural Resource Fund (NRF) has over US$1 billion, a mere $5 billion or less than one percent has been set aside from the $782 billion national budget for cost of living relief.

This was highlighted on Thursday at the weekly press conference of the Leader of the Opposition, Aubrey Norton. During the press briefing, the Economic Adviser attached to the Office of the Opposition Leader, Elson Low noted that despite the yearly increases in the budget, the cost of living relief sum seems to remain minimal. Low said: “This $5 billion is less than half of a percent of the national budget which is $782 billion and during the biggest cost of living crisis for the past 40 years; the government has decided to give less than a percent of this budget towards the cost of living mitigation.”

He continued “The Government seems to think that spending on public servants is useless but it is the exact opposite. So why public servants’ salaries are not increasing at the same or similar rate as the budget…and we are not talking about a mere pay increase. We are talking about the economic benefits that come from being able to pay people better ways.”

The Economist also stressed the fact that the sum is the same amount as last year when the budget was much smaller. “It is a totally ridiculous figure,” he declared, reminding that Government has at its disposal $60 billion which it received as a result of the hike in oil prices last year. “At least, you would think that the Government would put the $60 billion to offset the burden of the cost of living,” the Economics Adviser said.

Norton echoed similar sentiments, noting that budget 2023 confirms that the Government is more interested in serving its business cronies than in lifting the quality of life of the Guyanese masses. The Opposition Leader noted that while the Minister with Responsibility for Finance, Dr. Ashni Singh, spoke for over six hours; the budget was long but vacuous.

He asserted that “Budget 2023 confirms that the Government is uncaring, and anti-poor. Budget 2023 confirms that the government has no national development plan …will not eliminate poverty, will not ensure that families can live comfortable and happy lives, and will not build world-class social services in health, education, public utilities, public safety, justice, and a clean environment. Budget 2023 confirms that the PPP is incapable of using our vast oil wealth to transform the lives of the Guyanese people.”

Norton opined that people should no longer accept a paltry $5 billion towards the cost of living mitigation. He said, “Old Age Pension, public assistance, and ‘Because we care’ cash grant increases are shameful at a time when our country’s oil industry is booming. The poverty Guyanese endure today is not artificial, it is real. It is a product of a government that refuses to even contemplate the harsh realities we see every day. Social support for families could easily be doubled this year. The PPP, however, is only content to offer a heartless pittance. This is even while the real wages and salaries of the people continue to decline.”

The Opposition Leader questioned the measures to transform the education system.  He noted that in September of 2022, President Ali told the United Nations that education spending would be increased to 20% of the national budget.  Additionally, last year only 13% of the budget went to the Ministry of Education, and this year only 12% will be spent on education.

“Where are the salary increases for public servants and teachers? Where is the decision to make the University of Guyana free? Where are the plans to ensure all our schools across all communities and regions have the human, financial, and other resources to deliver quality education to our students? There are none!” declared Norton.

Norton explained that “budget 2023 failed to speak in terms of quality of life indicators, such as life expectancy, literacy and numeracy levels, infant and maternal mortality rates, and doctors-to-patients ratios, teachers-to-students ratios, crime rates, and access to adequate food and nutrition–with the goal of lifting Guyana far beyond its historic underperformance.”

According to the opposition leader, the budget is mere platitudes with no specific targets to be achieved in terms of improving the quality of life of our people.

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• Budget increases, Economic Adviser, Elson Low, Natural Resource Fund (NRF), Office of the Opposition Leader

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