MP Duncan criticizes Govt’s increased borrowing

Jan 25, 2025 News

…country’s debt rose to US$6B by the end of 2024

Kaieteur News- Opposition Member of Parliament (MP) Sherod Duncan, on Friday, voiced his concerns over the Government of Guyana’s borrowing policy.

Giving his contributions to the 2025 Budget Debates, Duncan pointed to the alarming rise in public debt, and mismanagement of the country’s resources.

Duncan described the $1.382 trillion budget as a continuation of fiscal practices that have failed to deliver meaningful improvements in the lives of ordinary citizens.

MP Duncan criticizes Govt’s increased borrowing

Opposition Member of Parliament (MP), Sherod Duncan

“While the current administration touts Budget 2025 as the largest budget ever, we must not be swayed by mere superlatives or bewitched by enticing words. Instead, let’s delve into the substance and assess whether this budget truly serves the best interests of all Guyanese or if it is a continuation of fiscal habits that have not always yielded optimal results,” he said.

The MP raised concerns about Guyana’s growing debt burden, citing data to highlight the troubling growth. “Domestic public debt has increased significantly, from G$88.7 billion in 2020 to G$360.2 billion in 2021, and external debt now exceeds US$1.5 billion. This unsustainable trajectory poses risks for future generations,” Duncan stated.

As of December 31, 2024, Guyana’s debt has climbed to nearly US$6 billion, standing at US$5.993 billion. This marks a significant increase from the US$4.5 billion recorded at the end of December 2023. This was revealed by the Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr. Ashni Singh, during his 2025 Budget presentation. External Public and Publicly Guaranteed (PPG) debt reached US$2.2 billion by the end of 2024, while domestic PPG debt rose to US$3.7 billion.

Early 2024, the government got the green light to increase the ceilings on both domestic and external debt. The domestic public debt ceiling has been increased to $1.5 trillion, up from $750 billion from its last revision. Meanwhile, a new external borrowing ceiling of $1.5 trillion has been approved, after its last increase to $900 billion. This move was part of a broader financial strategy to increase the nation’s capacity, in order to finance its $1.146 trillion 2024 budget, including several large-scale infrastructure projects.

Moreover, in his presentation MP Duncan accused the government of over-reliance on oil revenues while failing to diversify the economy or address critical issues in traditional sectors.

“The AFC has consistently voiced concerns over the management of Guyana’s economy, particularly in light of its burgeoning oil revenues. Mismanagement of resources, overpriced infrastructure projects, and increasing national debt have been recurrent issues,” Duncan explained.

He also addressed the persistent cost of living crisis, stating, “Subsidies address symptoms, not root causes.”

Duncan further pointed to alarming trends in the economy, including poor execution of infrastructure projects, high inflation, stagnant wages, and declining traditional industries. It should be noted that in 2024, the gold industry grew by 0.5%.

In conclusion, the Opposition MP described the budget as an election-year document that prioritizes political goals over the needs of the people.

“Budget 2025 is not a vision for progress; it is a missed opportunity. It prioritizes the political agenda of the PPP over the practical needs of the Guyanese people,” he said.

(MP Duncan criticizes Govt’s increased borrowing)

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borrowing, budget 2025, debates, Debt, Sherod Duncan

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