By Mark DaCosta- In a fierce debate over the 2025 national budget, opposition lawmakers have raised serious concerns over the People’s Progressive Party (PPP) administration’s economic policies, pointing to rising public debt, soaring inflation, and the growing financial struggles of the country’s poor. Despite the government’s claims of robust economic growth, critics argue that the budget fails to address the real needs of everyday Guyanese, particularly the most vulnerable in society.
During the National Assembly’s budget debate, Shadow Finance Minister Juretha Fernandes, representing the opposition, presented a scathing critique of the government’s fiscal management over the past five years. She highlighted the sharp increase in the nation’s debt and the failure to match wage growth with inflation, warning that the government’s current policies are exacerbating the financial difficulties faced by working-class families.
Fernandes, who represents the Opposition coalition, A Partnership for National Unity and Alliance for Change (APNU+AFC), pointed to the substantial $1.382 trillion budget presented for 2025 and the government’s spending of over $3 trillion in oil revenues between 2020 and 2024. Despite this influx of oil wealth, Fernandes said that the nation’s poverty rate has continued to rise, now standing at 48 percent. She described this as a “stark reality” under the PPP administration, accusing the government of prioritising private business interests over the welfare of ordinary citizens.
High Inflation, Rising Debt
One of the central points raised by Fernandes was the issue of inflation, particularly the sharp increase in food prices. According to her, food inflation has risen by 44.8 percent between 2019 and 2024, placing a significant burden on the working poor. She noted that while the government has announced wage increases during this period, these have not kept pace with the rising cost of living. “According to the Bureau of Statistics, from 2019 to 2024, inflation increased by 20 percent, with food inflation skyrocketing by 44.8 percent. The wage increase for public servants during this period was only 35 percent,” Fernandes stated, underlining the disparity between salary increases and inflation.
Fernandes further criticised the government’s approach to public debt, emphasising that between 2020 and 2025, the national debt is projected to reach US$7.637 billion. This represents a staggering increase from US$1.698 billion in 2019, placing a burden of approximately GYD$5.9 million per household. Fernandes argued that this debt will ultimately be borne by struggling families who are already living paycheck to paycheck. “From 2020 to 2025, the PPP added a debt burden of GYD$5.9 million to every household in Guyana,” she pointed out.
In her speech, Fernandes also questioned the government’s use of oil revenues to finance infrastructure projects, pointing to delays and failures in key sectors like power generation. She warned that the growing national debt was being used to enrich the wealthy, while the poor were left to shoulder the costs of these lavish projects.
Disputing Economic Growth Claims
Fernandes also took issue with the government’s comparison of debt-to-GDP ratios, which she deemed misleading. She argued that by using non-oil GDP during the coalition administration’s tenure and comparing it to the current government’s oil-inclusive GDP, the administration was presenting a distorted picture of economic growth. The non-oil economy grew by 36 percent from 2020 to 2024, according to Fernandes, yet the national debt increased by a staggering 253 percent during the same period. This, she argued, demonstrated a “7 percent growth in debt for every 1 percent growth in the economy.”
To highlight the contrast with the previous administration, Fernandes pointed out that under the APNU+AFC government, Guyana’s GDP grew by 19 percent between 2015 and 2019, while public debt increased by just 14 percent. She concluded that the PPP had increased the national debt by 18 times more than the coalition government while only delivering 17 percent more growth.
Government’s Defence of the Budget
While opposition MPs continued to criticise the budget, government representatives defended it as a step forward for the country. Minister in the Ministry of Housing and Water Susan Rodrigues rejected accusations of economic mismanagement, highlighting the PPP government’s efforts to create jobs and improve living standards. She pointed to the booming construction sector, which she said had provided thousands of jobs for young Guyanese. Rodrigues also praised the government’s housing programmes, which have reportedly helped over 20,000 young people acquire homes or land in recent years.
However, the heated debate took another turn when Minister of Tourism, Industry and Commerce Oneidge Walrond responded to Fernandes‘ criticism of the hospitality sector. Walrond accused Fernandes of misunderstanding the value of the sector, which she said offers diverse career opportunities, from housekeeping to management. “MP Fernandes’ remarks reflect a fundamental misunderstanding of the Tourism Sector and disregard for the average Guyanese,” Walrond said.
Despite these defences, Fernandes remained firm in her position that the 2025 budget does not address the pressing economic concerns of ordinary Guyanese. She called on the government to focus on reducing the national debt and prioritising the needs of the most vulnerable citizens over private business interests.
As the budget debate continues, it is clear that tensions between the opposition and government are unlikely to subside. While the PPP administration highlights economic growth and infrastructure development, critics like Fernandes argue that the financial burden on ordinary Guyanese is growing, and the government’s policies are failing to deliver meaningful improvements in the lives of the nation’s poor and working class. As the country moves forward, the challenge remains: can the government balance its ambitious spending with the needs of its citizens, or will rising debt and inflation continue to hinder progress for those who need it most?