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Finance Minister agrees with IMF to guard against big wage hikes

Finance Minister, Winston Jordan.

Finance Minister, Winston Jordan.

Guyana’s coffers do not have sufficient money for public servants and other government employees to be paid hefty salary increases, Finance Minister Winston Jordan said Wednesday.

Ahead of negotiations with trade unions, he said they have already been told not to expect substantial wage and salary hikes.

The Finance Minister’s remarks at a news conference on Wednesday followed a word of caution by the International Monetary Fund (IMF) against substantial wage increases. “I agree with the IMF on this particular front,” he said.

While Jordan assured that government employees would receive a pay-hike before year-end, he urged them not to expect “exaggerated salaries” because they could lead to a cut in salaries or jobs in the future.

“We have to be careful when it comes to wages and expectations on wages because our economy is now coming out of the throes of a slowdown,” he said, adding that a lot more work needed to be done to collect revenues.

The Finance Minister said, “you can’t pay with the expectation that revenues will come.”

Asked whether the economy provides him with enough room to negotiate, he said he did not know about that but a  “sustainable” wage increase would be negotiated and that “we can meet out of projected revenues.”

The IMF forecasts that Guyana’s economy will grow by 4 percent in 2016, while the government projects a  4.4 percent growth.

 

The APNU+AFC government had promised a 20 percent increased in salaries for some government workers during the May 2015 general elections campaign.

  • Emile_Mervin

    The coalition is funnier now than a year ago. After giving themselves an unexpected or unannounced pay hike last year, the coalition jokers suddenly agree with the International Mother Fluffers to fluff public servants out of the campaign promised 20% pay hikes. Nevertheless, the coalition has money for Flag Raising and Independence celebrations and GuySuCo bailouts. Corruption is here to stay in Guyana, because if the coalition gave itself a raise to avoid ministers being corrupt, but did not give public servants a raise to stop being corrupt, then guess what?

  • Danny Persaud

    Hahaa..everyday u grunt..the afc..pnc cabal don’t care about…go look fo food and clothing fo u family..ur wasting ur time grunting…I feel sorry fo u after all u try an can’t get anywhere..