Because of space constraints, there are four matters that we were unable to elaborate on in our coverage last week of the Estimates of Revenue and Expenditure for the fiscal year 2022. The first is about the relationship between the inflation rate of 5.7 percent recorded in 2021 and the salary increase of 7.0 percent that public servants received in December last. Considering the absence of a salary increase in 2020, the severe impact of the COVID-19 pandemic and its variants, and the aftermath of the floods resulting in a steep increase in prices for locally produced food items, Government employees are no better off financially than they were two years ago. Indeed, the amounts they received were not even enough to cover the inflation rate for the combined two years. This state of affairs was exacerbated by the steep rise in prices for imported items as a result of increased shipping costs. It would appear that these price increases were not fully taken into account in the computation of the inflation rate for 2021. These observations must also be viewed against the backdrop of the 19.9 percent GDP growth in 2021 and a projected growth rate of 47.5 percent in 2022, raising questions about the extent to which citizens, especially those on the lower rung of the economic ladder, are really benefitting from the enhanced performance of the economy.
