Without substantive backing, the bold promises of the PNCR-led opposition risk creating economic chaos and eroding public trust, financial expert Rennie Parris has contended.
In his column ‘Talking Dollars and Making Sense,’ Parris highlighted that the proposed fiscal policies of the opposition would deplete all of Guyana’s oil revenues within a year.
“More concerning, these policies – when combined with existing spending priorities for various government ministries and programs – would deplete the entire Natural Resource Fund (NRF) within a year,” he wrote in his latest column which examined the lofty promises made by the PNCR-led opposition.
Among those promises are: monthly cash grants of $100,000 to $150,000 to every adult Guyanese; $400,000 per month tax threshold; $100,000 per month old age pension; and 35% salary increases among other measures.
The financial expert said that even if the opposition saves $300 billion through capital expenditure reallocation, reduces corruption, and improves government efficiency, the combined costs of proposed cash grants, tax relief, and pension increases would still result in a deficit.
He explained that the NRF’s current balance of $646 billion, proceeds from oil, royalties, investment income, government taxes and non-taxed revenue, carbon credits, and the Guyana REDD+ Investment Fund are projected to provide the government with $1.7 trillion in spending power in 2025.
However, the $900 billion PNCR cash-grant policy would reduce that amount to $800 billion.
Additionally, the $45 billion reduction in tax revenue due to raising the tax threshold and the $55 billion increase in spending from higher pensions would leave the government with $700 billion – a figure that must fund the entire government, including ministries, loan servicing and new PNCR initiatives like rent, mortgage, and utility subsidies, childcare assistance, and a 35% salary increase.
“By the end of 2025, there would be no money left in the NRF,” he stated.To make matters worse, Parris explained that if oil prices drop to an average of $50 per barrel – a real possibility given the volatility of global energy markets – Guyana’s oil revenue could shrink by up to $185 billion.
He said that this would force the government to choose between massive spending cuts or taking on more debt, further increasing the deficit.
As such, he said that the proposed measures are deeply concerning and risk creating economic chaos.
“While the PNCR’s proposals may resonate with voters at first glance, their lack of a sustainable framework is deeply concerning. Policies must be grounded in fiscal realism and designed to promote inclusive growth. Bold promises without substantive backing risk creating economic chaos and eroding public trust,” the expert stated.
Parris’ academic credentials include a Bachelor’s in Finance and a Master’s in Real Estate from Baruch College, complemented by an MBA in Strategic Management from The Wharton School at the University of Pennsylvania.
He holds the prestigious Chartered Financial Analyst (CFA) designation, recognized globally as the highest qualification in the finance industry. His 18-year career spans some of the world’s leading financial institutions.
