–Dr. Jagdeo says consultation with citizens required before decision is made
WITH a number of measures already being put in place to cushion the rising cost of living, General Secretary of the People’s Progressive Party (PPP), Dr. Bharrat Jagdeo, last Thursday, said that the $5 billion that was set aside in budget 2023 has not yet been spent.

While announcing that the allocation has not been touched, the General Secretary said that not only will his administration consult with the people, but it will also examine where the interventions are needed.
“Norton is right on one thing, that we have not spent the $5 billion that we set aside this year for the cost-of-living measures as yet. So, we will look at it, and we will see where the interventions are needed. We said we need to consult with people and then we will do it,” he said.

Budget 2023 is 41.4 per cent larger than budget 2022, amounting to $781.9 billion, fully financed with no new taxes. Prior to the government tapping into the Natural Resource Fund (NRF), central government revenue typically composed of 96 per cent tax revenue and four per cent non-tax revenue.

Moreover, Dr. Jagdeo remarked that although naysayers continue to hurl criticisms from all angles, they have failed to acknowledge the major subsidies and implementations put in place by the PPP government, which are aimed at ensuring Guyanese do not feel the wrath of the surge in the cost of living.

Dr. Jagdeo said: “We then had direct interventions; we removed the taxes on a whole range of items, on data, on electricity, on water, on food items, a whole range of stuff, all of value-added taxes,” adding that his government has also implemented a number to measures for people who are building low-income houses, in particular, the steel and cement subsidies.

Through the steel and cement subsidies, Guyanese constructing homes to the tune of $6 million and below benefit from 80 lengths of ½ inch steel rods, 60 lengths of 3/8 inch steel rods, and one sling of cement.
In comparison, builders with estimates of above $6 million and $25 million will benefit from two slings of cement.

Noting that other countries have decided to put pressure on their citizens and increase costs for amenities such as electricity, Dr. Jagdeo blazed the media outlets for not informing citizens about the measures that are being put in place to alleviate the cost of living.

Jagdeo further said: “…Are you aware that throughout increase in prices for fuel, that the government did not increase the price of electricity? Electricity is a huge component of the cost of living, and electricity prices.”
Additionally, he touched on the fact that the two major components of the cost of living- water and electricity prices- have always remained constant.

“…Are you aware that the government did not increase the price for water, because the government provides water? We kept water and electricity prices constant. What this meant you don’t see it, but bigger subventions to these agencies, subsidy, we subsidized those. So, two huge components of costs we observed as part of the government’s plan to alleviate the cost of living increases,” the PPP General Secretary said.