Mid-Year report reflects economic growth but makes no difference to the lives of Guyanese-PNCR

Sep 10, 2024 News

Kaieteur News – The People’s National Congress Reform (PNCR) has noted that while the Mid-Year Report released by the Ministry of Finance paints a glowing picture of Guyana’s economy, citizens are still reeling in poverty.

In a statement, PNCR said that while the Mid-Year report indicated that Guyana’s real economy grew by an estimated 49.7% in the first half of this year; it failed to show how the average Guyanese saw increase in their income. As such, the PNCR reiterated that “if the country grows our people must benefit.”

The party noted that “The Mid-Year report makes no difference to the lives of Guyanese. Mid-way through the life of the third oil budget, life in ordinary Guyanese households has not in any way become more prosperous or comfortable. On the contrary, it has become more stressful and burdensome.”

It continued: “The recent teacher strike and negotiations are an example of this paradoxical situation. The government must surely have known these were the growth numbers for the first half of the year, yet they stuck to a salary increase number so anemic, teachers have been left bitterly disappointed.”

According to the opposition party, the Ministry of Finance in its report speaks of the economic and fiscal risks the economy faces. The party said “Its list of five such risks, however, completely ignores several major risks: that is, the tens of billions of dollars lost to corruption, poor planning, and mismanagement. The more the government spends, the more this loss escalates.”

Further, the PNCR said there is no evidence, for instance, that the government is responding to the recommendations of the International Monetary Fund (IMF) for “a strong and effective public financial management system, and a robust public investment management (PIM) framework.”

PNCR explained “The reported 12-month (June 2023 to June 2024) inflation rate of 4% is a number with no meaning. It is the butt of jokes. Apart from being a Georgetown-based index, it severely undervalues food inflation. Many citizens share the view that prices of essential food items have increased around 20% since mid-last year.”

According to the opposition party, this crisis has caused many Guyanese families to reduce the number of meals they eat as well as what they eat. Nevertheless, the PNCR said that VP Jagdeo is on record as denying the existence of high inflation and soaring cost-of-living. With that kind of attitude, do we want another term of the PPP?

“The report has been ‘deafeningly silent’ on the progress on reducing Guyana’s food import bill.  The party noted that Guyana’s Government has commitment to effort to reducing food imports CARICOM-wide by 25% by 2025.”

The party said that “Guyana’s role in this endeavour is two-fold: (a) reducing its own food imports, and (b) increasing food exports to the CARICOM even as 2025 looms large.” Further, the party stressed that report makes no mention of the need for any supplementary budgets.  It reasoned that “this most likely reflects the fact that the government’s planning process, such as it is, is haphazard and spur-of-the-moment.”

• Guyana’s economy, Guyanese, Mid-Year Report, Ministry of Finance, PNCR