Don’t expect an elaborate increase—says Finance Minister to public servants

Public Servants can expect a “top-up” on their salaries before Finance Minister, Winston Jordan, brings

Minister of Finance, Winston Jordan

his next budget before the National Assembly.  But at the same time, he cautioned that expectations for handsome increases need to be tempered.
His warning in this regard comes on the heels of a report by the International Monetary Fund (IMF). This report said that Guyana must be mindful with its increases in wages when one considers the extent of economic challenges facing the Government.
The IMF Mission which was recently in Guyana noted, “Discussions with authorities centered on strategies to maintain fiscal and debt sustainability while boosting growth. Increasing current expenditure will crowd out space for public investment, despite significant donor support.”
The mission suggested “moderating the growth of wages, as well as reforming public enterprises with a view to reduce their reliance on government support.”
The Finance Minister said he agrees with the IMF position on this matter.
“As an economist and Minister of Finance, I can only say that I agree with the IMF on this front. I have been advising and giving warning about how we are to address expectations for wage increases and exaggerated demands in this regard.
“In the good times, paying exaggerated salaries has serious long and short term impacts. Trinidad and Tobago is feeling the effects of paying salaries which at one time seemed sustainable,” explained Jordan.
He added, “But given our economies, where we are exposed to the vagaries of the international market for our products, we could see that at one time, price just dramatically falls and then you are left hanging. Then there are two options before you. You either cut salaries or cut employment so to avoid being caught in that situation; one has to be extremely careful and prudent on matters of wage increases.”
The Finance Minister said that Guyana’s economy is now coming out of an economic slowdown but “I can say safely that increases will be paid before the next budget,” added Jordan.
The International Monetary Fund is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Under Article IV of the IMF’s Articles of Agreement, the IMF usually holds bilateral discussions with members every year. During those consultations, the mission reviews the overall economic developments in the country, as well as its policy measures aimed at maintaining of economic stability, ensuring a sustainable external balance and further liberalizing foreign trade.
Upon the completion of the IMF mission consultations, the IMF Executive Board discusses the staff report and issues an assessment of the country’s economic situation and the adequacy of its economic policy measures, based on a comprehensive analysis of the overall economic situation and a wider fiscal policy strategy of the member country. (Kiana Wilburg)