Finance Ministry guided Guyana’s economic transformation in 2021
The People’s Progressive Party Civic (PPP/C) government steered the nation onto a path of economic transformation in 2021, with the help of a financial agenda championed by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, M.P.
Here are some of the major initiatives and projects championed by Minister Singh and his ministry during 2021:
Dr. Singh spearheaded adjustments to the ceilings for domestic and external debt to regularise several issues unearthed after the government assumed office in 2020, and to facilitate financing for Budget 2021. The domestic debt ceiling was increased to $500 billion, almost three decades after the last upward revision to $150 billion, in 1994. Additionally, the external borrowing ceiling was increased to $650 billion, three decades after its last increase to $400 billion.
Dr. Singh tabled the $383.1 billion budget for the government’s 2021 development agenda in early 2021, and shepherded it through for consideration by the National Assembly.
Through the year, he also secured approximately $50 billion in supplementary financing for critical interventions, including COVID-19 and flood relief initiatives for the vulnerable and worst affected Guyanese groups, thereby injecting fiscal stimuli into the economy.
The Ministry facilitated increased mortgage financing for homeowners through signing of agreements with Bank of Baroda and the New Building Society (NBS). In March, Bank of Baroda was designated a mortgage finance company, which allowed it to offer home loans to prospective borrowers, as well as provide another choice to those considering applying for a loan to construct homes. In the same month, Dr. Singh approved an increase in the NBS mortgage ceiling from $12 million to $15 million.
Minister Singh led a countrywide outreach initiative with the National Insurance Scheme (NIS), resulting in the resolution of hundreds of backlogged cases. He also advocated for improvements in the efficiency of the Scheme’s processes. During its 52nd anniversary ceremony in September, the Minister said, “That quality of service [displayed during the outreach] must be provided at all times, starting now, and my instructions to the board and to the management are that they are to have a zero-tolerance attitude to discourtesy, disrespect, inefficiency.”
The Finance Minister inked an agreement with Midas BPO for the creation of 250 business process outsourcing (BPO) jobs in Linden. This agreement is one success story, out of multiple meetings Dr. Singh has had with several BPO companies to help facilitate their expansion and create more jobs, including Qualfon, Emerge BPO, Express International and Teleperformance.
The Minister announced an across-the-board increase of 7% in the wages and salaries of public servants, teachers, members of the Disciplined Services, Constitutional office holders, and government pensioners in November. This resulted in a payout of $10.5 billion in wages and salaries in December.
In December, Dr. Singh announced a two-week tax-free bonus for all health sector employees, in recognition of their hard work and patriotism throughout the COVID-19 pandemic. This provided $612 million in the hands of 9,200 health sector employees.
The Minister also announced the restoration of the joint services’ full month tax free bonus, as promised by His Excellency, Dr. Mohamed Irfaan Ali when the PPP/C reassumed power. This returned $1.2 billion in the hands of the joint services, which was taken away from them by the APNU+AFC government.
The Fiscal Management and Accountability Act was amended twice last year, with Bills tabled by Dr. Singh, in February and in December. The amendments articulated a transparent process for the submission, consideration and approval of budgets of constitutional agencies, while preserving their independence. In both cases, the amendments were necessary to address provisions placed into the principal Act by the APNU+AFC government during the previous term, which had unnecessarily complicated the consideration process.
Dr. Singh tabled the Natural Resource Fund Bill 2021 in December. It was necessary to replace the Natural Resource Fund Act 2019, which was passed by the APNU+AFC government after it was defeated in the National Assembly by a motion of No Confidence.
The new Act creates a robust, practical and transparent framework for the management of the wealth resulting from the development of Guyana’s petroleum resources. It establishes a governance framework in the form of a Board of Directors, and emphasises parliamentary oversight over the management and expenditures of Guyana’s oil revenues.