Guyana debt is growing bigger and bigger each year

Dear Editor,

Firstly, let me state categorically that I’m not a trained Economist.

From a layman’s perspective, Guyana debt is growing bigger and bigger each year. Why is this the case since we have money in the NRF for development.

Clearly something is wrong with the Guyana’s economy when we are borrowing heavily and saving a pittance in the NRF.

Glossing over the problem/s with Guyana’s economy with bigger and bigger budgets is not the answer.

What is needed is proper oversight of Government Spending to curtail the PPP/C Government over exuberance and over reliance on debt financing to “grow” the economy.

Point to note: if Guyana’s economy grew by 20% yet we borrowed to propel that growth then realistically Guyana’s economy contracted by about 5% since the debt would carry an interest rate (I’m assuming here that the interest rate is 5%).

In layman’s terminology, what the PPP/C Government of Guyana is doing is borrowing from Peter to pay Paul. They are basically rolling over debt as opposed to reducing it which is astonishing since Guyana has all this oil wealth.

You do not need to be a trained economist to see that this will create a problem for future generations.