Early news
The early news that has emerged from the new administration about the financial condition of Guyana is not good and one fears that it is likely to worsen as the stories about the condition of different parts of the economy unfold. The Minister of Finance reported very early, albeit tentatively, that the main account of the government − the Consolidated Fund-was “overdrawn.” Even before the meaning of those words could sink in, more trouble was found in the public sector with the coffers of GuySuCo empty and with the company not knowing how it would meet its liabilities, including the NIS and credit union contributions of its workers. Why should one be interested in, or even be concerned about, the condition of the Consolidated Fund (CF) and GuySuCo? This article explores the reasons that Guyanese should pay attention to the information already disclosed about the CF and GuySuCo. It reveals the irrationality of the previous administration when it came to managing the resources of Guyanese taxpayers and the undue burdens that it had them bearing.
Cash sales
The discourse will start with the Consolidated Fund (CF). Government receives money from many sources. It collects taxes, royalties, rents, fines, and tolls from households and businesses, and moneys from the sale of passports and state properties. The government also receives money from bilateral and multilateral sources. The money from the different sources are brought together or consolidated into one package. This package is referred to as the Consolidated Fund. As such, the CF is really a reflection of the total sum of money that is collected or received by the Government of Guyana and is akin to a cash sales account that is used in private retail business to accumulate revenue from the sale of different products. The official account is kept at the Bank of Guyana. The government uses the money to meet expenditures on the goods and services that it provides to the public. These goods that are normally referred to as public goods include, inter alia, things like
