More cash grants coming in “balance” with infrastructural projects – Jagdeo

Last Updated on Friday, 18 October 2024, 21:07 by Writer

The Guyana government on Thursday announced that more cash grants would be handed out to Guyanese while investment in infrastructural development would continue, in stark contrast to President Irfaan Ali’s position against countrywide disbursements more than one year ago.

“It’s a sustainable thing for us. We can do this periodically: give our people some money and still do the infrastructure,” Vice President Bharrat Jagdeo told a news conference at Freedom House, the headquarters of his ruling People’s Progressive Party.

He said government was keen on “balancing the interests” between infrastructure such as roads, housing and hospitals. “You don’t have to do one at the expense of the other. Our people can benefit and also we can do that…in a sustainable way,” said Mr Jagdeo, a former Finance Minister and currently the chief policymaker on the oil and gas sector.

He said the disbursements would not be made every year and would depend on affordability and economic stability. “This will happen periodically in the future. It’s not going to be a recurring thing every year like they are saying. It’s dependent on affordability because we don’t want to become like some other countries that distribute money only and then they collapse years later and nothing happens,” he said.

The opposition political parties have been relentlessly calling for Guyanese to benefit more from the oil and gas sector in areas such as higher salaries, cash grants and improved education delivery. Opposition Leader Aubrey Norton had on several occasions said his People’s National Congress Reform believed that more money needed to be spent on human development while at the same time investing in infrastructure.

The Vice President’s announcement that government would disburse more cash grants from time to time is in sharp contrast to President Ali’s position in January 2023. He had said then that distributing cash to Guyanese households would be one of the worst things the government could do, and the fastest way to cause Guyana to be faced with the Dutch Disease in which the rapid growth of the oil and gas sector would afflict other aspects of the economy.

Meanwhile, Mr Jagdeo on Thursday announced that the GY$100,000 cash grant to every Guyanese adult 18 years and older from January 1, 2024, would be mailed as cheques to most Guyanese. Verifiable databases of pensioners and government workers would be used to dispatch the cheques.

He dismissed opposition claims that the disbursement of cash grants was the brainchild of Distinguished Economics Professor, Clive Thomas. Dr Thomas had several years ago first advocated that each Guyanese household should receive US$5,000 annually. The Vice President also scoffed at former Finance Minister, Winston Jordan for taking credit for the Guyana government’s change in distribution of the money from GY$200,000 per household to GY$100,000 for every adult.

Mr Jagdeo played a video recording from his phone conversation with Mr Jordan, as former Finance Minister, ruling out cash grants. Mr Jordan had been also lukewarm to the idea of cash transfers in 2018.