Leader of the People’s National Congress Reform (PNC/R), Aubrey Norton, has dismissed the government’s concerns that significant wage increases for public servants could destabilize the economy.
Vice President (VP) Dr. Bharrat Jagdeo had earlier defended the government’s incremental approach to salary increases. He had explained that the staggered increase for public servants was the result of careful financial planning, considering Guyana’s economic growth and oil revenues.
Jagdeo had outlined that salary increases must be sustainable and based on thorough analysis of economic conditions and future revenue streams to avoid instability. Jagdeo warned, “Any salary increases not grounded in an analysis of your economy and future revenue streams is conjectural and unsustainable. Many countries have experienced economic instability due to unsustainable wage increases.”
Speaking at a press conference on Tuesday, Norton rejected the argument made by Vice President Jagdeo regarding the potential inflationary effects of raising public sector wages. The question was put to the PNC/R leader regarding why the public should trust his party to provide substantial wage increases for teachers and other government employees, while also ensuring economic stability.
Norton responded, “We have been establishing that the inflation argument by the government can never be a viable argument.” He argued that the billions being spent on infrastructure, going into the pockets of a few contractors, could fuel more inflation than increasing the salaries and wages of public servants.
He said the PNCR’s position is more than just distributing money. “We have always said it’s not just solely a case of paying money, but that we will expand agriculture into all regions which will create the employment we have identified projects to increase employment, put people in business, and once they are the economic activities to absorb the resources,” Norton explained.
Moreover, Norton criticized Jagdeo, suggesting his economic arguments lack credibility. “If he [Jagdeo] argues on pure economic terms, he will see that paying workers a livable wage will not result in inflation,” the PNCR leader added. He then accused the government of using inflationary arguments to suppress public servants, enrich cronies, and exacerbate poverty.
