Dear Editor,
The 2026 Budget is a missed opportunity for the upliftment of the working class-the sector that the Founder of the PPP spent his entire life to elevate. Booming economic success has failed to translate into better lives for the people who keep Guyana moving every day as pensioners will receive a paltry increase of $5000 (US$20) monthly in yet another broken promise by the President who had indicated an increase to $20,000.
The raising of the mortgage ceiling to 30 million from 20 million, an increase of 50%, clearly illustrate that the government has officially admitted that $20 million can no longer build a basic home in Guyana. A 20 million mortgage with a 20-year amortization incurs a monthly payment of $132,000, while 30 million translates to $198,000. Most lending institutions have guidelines ranging between 30 % to 40 % gross income ratio which means that the minimum annual income for a 30 million mortgage would be $495,000 monthly 40% of 495,000 =198,000. Homeowners would be forced to sell cell phones and chocolate to make mortgage payments. The thinkers of the PPP have not realized that housing is in a precarious bubble stage and are not cognizant that this is a deadly shift towards increased debt burden. Additionally, by tapping into insurance funds, the government is seeking a new source of financing to keep housing afloat, albeit on dangerous waters. Such a shift imposes greater risks on pension funds and insurance premiums policy of the ordinary people; a debt trap when one considers the Keynesian economic model that when wages do not keep on par with inflation people will become saddled with burgeoning and unpayable debts.
Budgets ought to be constructed by all sectors of society, including the Opposition bench which represents over 45 % of Guyanese society. It should not be a fait accompli, but rather a reflection of the broader society.
The tyranny of the elected is clear: take it or leave it. Last year US$2.46 billion was withdrawn from the Natural Resource Fund for national development priorities like the Bharrat Jagdeo Bridge and the Gas-to-Energy project, which aims to slash electricity costs by 50%. This project has all the hallmarks of previous projects like Skeldon, Amaila Falls, Surendra Hospital and a litany of other catastrophes.
However, money sitting in in a New York bank account earning around 3% interest makes little sense when Guyanese citizens lack reliable electricity, modern healthcare, or efficient transport. Further-more, Guyans borrows from China for a range of construction projects at a rate of around 6%.
It seems like Guyana’s economic train is moving so fast it has forgotten to pick up the passengers.