Government Senator Dwayne George on Wednesday rejected opposition criticism of government borrowing under a projected budget surplus, arguing during the Upper House debate that borrowing is a deliberate investment strategy rather than a sign of fiscal weakness.
Speaking during debate on the 2026 Appropriations Bill, George said the government has moved from “borrowing to survive” to generating surplus revenue in order to invest, and that prudent borrowing allows the country to preserve reserves while financing long-term development.
“We don’t borrow now to survive,” George told senators. “We generate surplus to invest.”
He challenged claims that a surplus should eliminate the need for borrowing, using a household-finance analogy to explain the government’s approach.
“If you have $100 in your bank account and you want to purchase something for $100, any sensible individual would borrow rather than use the last $100,” George said. “When you use your last hundred dollars, you have zero dollars and zero cents. In the case of an emergency, you don’t have anything.”
George said borrowing allows governments and households alike to manage risk while spreading costs over time, even when cash reserves are available.
“It is easier to pay $5 or $10 a month than to spend your last lump sum,” he said, adding that businesses and individuals routinely borrow despite having sufficient savings.
The senator said the same logic applies to national finances, arguing that surplus funds should be preserved while borrowed capital is used to finance projects capable of generating returns.
He cited government investments in Social Security, the Jolly Beach redevelopment, the University of the West Indies Five Islands Campus and other state-backed ventures, saying such investments are intended to create a “multiplier effect” that strengthens long-term sustainability.
“We invest to multiply what we inject,” George said. “If we inject one dollar, we inject it with the intention of multiplying that dollar.”
He said borrowing in this context supports economic growth, job creation and social stability, rather than undermining fiscal discipline.
George dismissed opposition claims that borrowing contradicts surplus projections, saying the government’s approach balances discipline with development.
“This budget is not about survival,” he told the Senate. “It is about progress.”
The debate continued as senators examined competing interpretations of the government’s fiscal strategy and surplus projections under the 2026 budget.