Robust audits of oil expenses, removing flaws from Exxon deal among initiatives to help PNCR fund campaign promises

Feb 02, 2025 News

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Kaieteur News-The People’s National Congress Reform/ A Partnership for National Unity (PNC R/APNU) on Saturday defended its 2025 Budgetary proposals, following arguments by Finance Minister, Dr. Ashni Singh that its measures were merely fanciful dreams.

In bringing the curtains down on the five-day Budget Debate in the National Assembly on Thursday evening, the Finance Minister challenged Guyanese to calculate the measures promised by the Opposition, questioning the feasibility of such proposals.

He pointed out that these would cost $ 799B – almost one trillion dollars without including any infrastructural plans for new schools, hospitals, police stations, water wells, or allocations for drugs or medical equipment for health institutions.

In responding to his comments, the PNCR recognized that the Minister specifically identified the following measures and provided his own estimated costs: (i) $400,000 tax-free threshold monthly to cost $34B; (ii) the $100,000 cash grant for 600,000 adults will cost $60B annually or $120B if done twice annually; (iii) $25B for University of Guyana (UG) fees; $50,000 monthly to 14,000 students at UG and the technical institutes will cost another $8.4B. For the re-imbursement of UG loans $1B; (iv) water subsidies will cost about $11B; (v) free electricity up to $10,000 per month will amount to $27.6B; (vi) to pay $100,000 per month in old age pensions would cost $91.2B; (vii) salary increase – $283.5B; (viii) to increase minimum wage to $200,000 monthly – another $43.2B will be required; (ix) $20B for direct cost of living measures; (x) $3B for small business bureau; (xi) $50B for a development bank; (xii) $100B towards rent-to-own programme; (xiii) GPL allocation $200B to support grid updates; and (xiv) job seekers $40,000 monthly payment – another $28.8B.

The PNCR/APNU in welcoming the debate noted that this provides a golden opportunity for the Guyanese people to see the contrast between the PPP’s friends, families and favorites approach to development and the PNCR/APNU’s people-centered strategy.

To this end, the party said, “We wish here to focus exclusively on our social protection programs and on the measures to guarantee all households a livable income.”

This, it said, would initially cost just over $600B annually.

The PNCR therefore questioned, “Is Dr. Singh suggesting we can’t or shouldn’t invest so much in the people of Guyana?”

According to the party, its initial rollout of programmes will see the tax free threshold increased to $400,000- to cost $34B; the $100,000 cash grant for 600,000 adults at a cost of $60B annually or $120B if done twice annually; sliding scale salary increase (starting from 35% for minimum wage earners); $8.4B in student stipend for 14,000 tertiary-level students, and $1B for loan reimbursement for UG students; $40B on electricity and water subsidies; $100,000 per month in old age pensions at a cost of $91.2B; increase in minimum wage to $200,000 monthly for another $43.2B; ) job seekers program to cost another $14B and a monthly childcare allowance for each child up to 16 years to cost an average $25B.

To meet the cost associated with these measures, the PNCR explained that as the next government, it would ensure there is a reduction in the billions of dollars lost in “corrupt and inflated” contract awards.

Additionally, it highlighted plans to tighten the management of public finances following the advice from the International Monetary Fund (IMF) and other financial institutions which would result in an average of 20 to 40% of public expenditure being saved annually.

Moreover, the party said it will conduct robust audits of the expenditures of oil companies, with sustained efforts to recover outstanding unauthorized expenditures; will remove flaws and weaknesses in the 2016 oil contract to prevent financial leakages and loopholes and ensure prudent investments of the Natural Resource Fund (NRF).

Furthermore, PNCR said it would pay out any windfall taxes that are obtained when oil prices rise above a predetermined level.

In its over 1400-word statement, the party explained, “We cannot present a full case in a press release, but let us emphasize a few things: 1) We are hellbent on eliminating poverty and providing a livable income by year two in government as core objectives of our people-centered strategy; 2) cost-of-living measures will be included within other measures; 3) we will apply budgetary fiscal rules to guide such expenditures; 4) unlike the PPP, we see these and other measures as direct investment in people and economic development, not as consumption or as Vice President Bharrat Jagdeo put it ‘people eating out the budget’”.

The PNCR was keen to note that it is fully cognizant of the jeopardies of runaway inflation and an overheated economy. To this end, it noted that predictive economic modelling – to be done by hired experts – will provide necessary guidance.

 

(Robust audits of oil expenses, removing flaws from Exxon deal among initiatives to help PNCR fund campaign promises)

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