As Guyanese wait in anticipation to hear the budget measures that would be read today, persons are already breathing a sigh of relief, as Head of State Dr Irfaan Ali, in a virtual address to the nation on Tuesday evening, said resources have been set aside to directly address the global surge in the cost of living.
It could be recalled that, just weeks ago, the Food and Agriculture Organization (FAO) said that its Food Price Index continues to trend upwards, reaching a 10-year high, despite a few months which registered small reductions, including December. In its report published on January 6, the FAO confirmed that food prices are continuing to rise, and not just in Guyana.
The report shows – and as was conveyed by FOA Representative to Guyana Dr Gillian Smith – that not Guyanese alone are experiencing the rise in food prices, but the rest of the world as well.
The factors contributing to the rise in individual commodity prices are numerous – including, and not limited to, food production levels (supply); demand; speculation (also plays a part in food prices’ fluctuations); potential impact of weather and environmental conditions; COVID-19 pandemic, increases in freight and logistics. The report had stated that, for a country such as Guyana, the situation of the global food commodities would have mixed impact. As an exporter, Guyana is affected by global prices it would receive for exports of rice and sugar. Guyana is also feeling the impact of higher prices for imported foods (processed and raw materials), feedstock and farming input supplies.
Based on the FAO’s Index, it is welcoming that the Head of State acknowledged the economic burden around the world, including Guyana. To quote him: “I am aware of the impact that cost of living is having. While we cannot address all the issues surrounding cost of living, I’ve instructed those resources be set aside to address this issue…this Government has a commitment to do all it can within its budgetary constraint and framework to help the population of this country…I’ve asked the Minister of Finance to set aside a sizeable allocation to address issues of cost of living. This sizeable allocation will be used through consultation with communities across the country to identify specific ways and initiatives in which we can deploy this budgeted allocation to ease the burden on the population.”
The issue of significant increase for the cost of food has burdened Guyanese with prices in the local markets at their highest levels in recent history. It is for this reason the pre-budget address to the nation has ease the minds of many, who have been facing the brunt of these increases.
If one could recall that a mere 38 days after taking the reins of power, the PPP/C Government presented a $330 billion Budget to be approved by the National Assembly.
That was commendable, considering the fact that, normally, undertaking such a task would take over three months. It meant that from the time the new Government was sworn in to office, it was engaged in working non-stop to understand what the country’s financial situation was at the time, and plan for the remainder of the financial year.
Based on the previous budget and the constraints faced, the Government must be applauded for taking immediate steps to provide assistance to families, and, in a broader sense, reverse the downward trend of the economy pre-2020 elections’ results.
From what we have seen so far, the economic policy of the Government has been very inclusive and well-thought-out. We are confident that, once again, in another Budget under this Government, the economy will continue to grow, and this positive effect will trickle down to ordinary citizens.
