Significant part of budget 2021 to be funded by loans – Jagdeo

A significant portion of the 2021 budget is and would be funded by loans says Vice President Bharrat Jagdeo. The Irfaan Ali led PPP/C administration will present its second budget on Friday.

Jagdeo who was at the time responding to questions by reporters at his first press briefing for the year said, “yes,” the country’s budget would be largely supported by loans. He added that the country still runs a fiscal deficit and, over the years, would have had to borrow loans.

Jagdeo who was integral to the budget process said that the Government is hoping to keep a cap on its borrowing while at the same time maximizing spending.

“This budget shall be a continuation of the framework that we would have established in opposition…that framework had a few key objectives, and we will remain faithful to those objectives and every budget over the next several years,” Jagdeo said.

Jagdeo blames the APNU/AFC for budgets he claims affected welfare of a number of people, staggered job creation and private sector growth.

“They actually had an aggressive plan to dismantle social security features that we put in place that led to the improvement of many Guyanese.”

This budget which is expected to be presented by Minister with responsibility for Finance Dr Ashni Singh is expected to focus on the expansion of the productive sector while aiding the non-oil sector.

“We allow the [oil] sector to dominate the rest of the sector, then we will suffer the same fate as many other countries around the world,” Jagdeo posited.

Jagdeo is promising a budget would create jobs, grants for enterprising entrepreneurs and infrastructure. Last year September, the Dr. Irfaan Ali Administration had presented a $330 billion emergency budget. This year’s budget is the first full-term budget proposed by the PPP/C government.