Leader of the Opposition, Bharrat Jagdeo noted that, the government intends to borrow close to G$ 220B (GuySuCo’s bond and Islamic Bank loan), almost the equivalent of Guyana’s total external debt by 2015 of G$236B, is serious cause for concern.
“We had however predicted this. The massive growth in the size of the national budgets, primarily on consumption, could not be financed by the hefty increase in taxation; so this hopelessly misguided APNU government had to resort to large scale borrowing,” he said.
The Opposition Leader called the approach, a failure to national economic management. The economist noted that this method was tried in the past and it led to a bankrupt country and resulted in devastating consequences for the Guyanese people. “I am sure everyone would recall that the external debt was over 900 per cent of GDP in 1992, which was reduced to 36 per cent of GDP in 2015,” he said. Jagdeo is of the opinion that the Government plans to double it again within give years.
“Borrowing without feasibility studies and spending haphazardly with no vision or plan, particularly in the wasteful and corrupt manner that is now the hallmark of the Granger-led Administration will not solve the economic malaise that we face, but lead to pawning the wellbeing of current and future generations of Guyanese, the former President said.
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