Reduce cash grant, deliver to individuals instead of households – former Finance Minister Jordan

Last Updated on Sunday, 13 October 2024, 20:55 by Writer

Former finance minister, Winston Jordan on Sunday recommended that government abolish plans to distribute the GY$200,000 cash grant per household because of concerns about the definition of a household.

“To avoid this problem that is inherent about this issue about households, they (government) should step back and say ‘we’re listening’ they are indeed problems about this question about household,” he said on the People’s National Congress Reform’s programme, Nation Watch.

Instead, he said government should distribute GY$100,000 to each adult Guyanese, backed up by identification data from the Guyana Revenue Authority (GRA), National Insurance Scheme (NIS) and the Guyana Elections Commission’s (GECOM) register. “That is easier because, first of all, you don’t have to have a problem anymore about defining households,” said Mr Jordan, an economist and former budget director at the Ministry of Finance.

He stressed that a house could have several households.

Using the GECOM register, he said, it would also allow authorities to know who are in Guyana and are eligible to vote, GRA could tick off recipients of the money by using their Taxpayer Identification Numbers and determine who is not on their roll and the NIS would be able to determine who are not contributors. “This is the beauty about going individuals. The question is whether the government wants to know this kind of inf0rmation,” he said.

If Mr Jordan’s approach, if accepted, would avoid major disagreements among families and result in many households receiving more monies.

Vice President Bharrat Jagdeo last week acknowledged that Guyanese of all political persuasions were likely to engage in skullduggery to get more cash grant per household than they are legitimately entitled to. He said government planned to use the consumer databases from Guyana Water Incorporated and Guyana Power Light as part of the method to hand out the money.

Mr Jordan also questioned government’s calculation that the cash grant would cost the treasury GY$60 billion when, even with an increase in the number of households, foreigners would not benefit from the payout. He said at least GY$12 billion would have to be accounted for if government’s figures and plans are used.

Meanwhile, the PNCR on Sunday restated its promise to increase the income tax threshold to GY$400,000 per month in its first national budget should it win the 2025 general and regional elections. “This threshold will also serve as a tax allowance, producing the double impact where those who earn $400,000 a month and less will pay no taxes and those who earn higher will pay taxes only on the amount above GY$400,000/month,” the party said in a statement.

That political party said its proposed tax-free threshold and tax allowance of GY$400,000 per month would “move the needle in the lives” of over 210,000 workers: approximately 54,000 in the public sector, 150,000 in the private sector, and several thousand self-employed persons. Coupled with the PNCR/APNU’s pledge to raise the salary of all government employees by 35% (graduated) and with its social programs for all, “the positive impact on poverty, economic insecurity, inequality, opportunity, and economic dynamism would be immediate, self-perpetuating, and self-augmenting.”