Home Letters The Govt’s strategic measures against inflation are a triumph for Guyanese
Dear Editor,
The ill-placed critique on cost-of-living increases fails to consider the full picture of a Government that has acted with empathy and strategic foresight absorbing many costs through the Treasury in order to keep living expenses manageable for all Guyanese.
It is astonishing how the Opposition and certain sections of the media continue to propagate a narrative that ignores the Herculean efforts and strategic measures our Government has implemented to shield Guyanese from the worst effects of global inflation.
The Government’s comprehensive approach has safeguarded our economy, and enhanced the wellbeing of our people in these challenging times. We tend to forget that during the COVID-19 pandemic, the price of every commodity escalated due to halted production.
For instance, when Indonesia and Malaysia stopped exporting oil, the price of cooking oil surged by 300%, and the domino effect of this increase resulted in the cost of shipping a 40-foot container from China skyrocketing from US$3,500 to US$20,000.
Global conflicts like the war in Ukraine and unrest in the Red Sea further strained the global supply chain, driving costs higher.
Despite these external pressures, our Government, led by Dr. Irfaan Ali, maintained an inflation rate below the regional average, and that was no accident. This stability is a direct result of strategic interventions and substantial treasury expenditures.
While other countries have faced massive increases in transportation and utility costs, Guyanese were insulated against such occurrences because the Guyana Power and Light Inc (GPL) was allocated a large subsidy by Central Government in a decision that positively impacted both the business community and ordinary citizens.
Similarly, the Government made significant efforts to reduce the cost of the burden of fuel by removing a 50% excise tax on gasoline and diesel, saving the population USD$384 million annually. This tax relief translated into savings of approximately $500 per gallon of fuel, significantly reducing transportation costs and thus the overall cost of living.
Government have indicated that, since taking office, they have increased wages, salaries, and benefits by $90 billion; while pensioners now receive $20 billion more annually, and over 60,000 new jobs have been added, turning economic despair into opportunity for every part-time worker, every pensioner, every new job-holder; that’s real, tangible income in the hands of Guyanese.
These are just a few examples of how Government have mitigated the impact of global economic pressures on the local economy.
This Government has managed the complexities of global inflation, not with empty promises, but with strategic, people-focused actions. Every time one buys fuel, pays their electricity bill, or turns on the tap, just know that the Government is working tirelessly behind the scenes, absorbing costs in order to shield you from economic hardships; and this is a triumph for Guyanese.
Yours truly,
Anson Paul