– Jagdeo responds to criticism of salary increases

– highlights PPP reduced taxes by $40 billion

KEEPING the economy afloat requires both critical analysis of the current economy and how certain actions can influence the future, according to the General Secretary of the People’s Progressive Party/Civic (PPP/C), Dr Bharrat Jagdeo.

During a press conference on Thursday at Freedom House, Dr Jagdeo responded to the criticisms surrounding the 6.5 per cent across-the-board salary and wage for public servants.

The increase will benefit public servants, teachers, members of the Disciplined Services, constitutional officeholders, and government pensioners.

It will be granted retroactively from January 1, 2023.

Moreover, the consequential salary adjustments will benefit over 54,000 persons and will place an additional $7.5 billion in disposable income into the pockets of these employees.

“There’s an obsession about percentages every year,” Dr Jagdeo said while underscoring that any salary increase that is not rounded in an analysis of the economy, the state of the nation’s finances and failure to take into account the future revenue streams will be not be sustainability.

“The public servants are very important to managing a country. They work with the administration of many of our programmes in Guyana. We [the PPP/C government] have ensured that working conditions have improved; we have ensured that salaries have increased for public servants.”

“In some of the categories now, at the lower level in the public service, people are leaving the private sector to come and work because we have a minimum wage now in the public service that is higher in many private sector agencies,” he said.

Dr Jagdeo also stated that unlike the previous coalition government, who increased tax collection by over $80 billion, his PPP government, when they assumed office, in the middle of a global pandemic, reduced taxes by $40 billion.

“It’s not only wages and salaries you can spend on. You have to spend on roads, electricity…. We’ve restored the subsidy to the pensioners… People don’t look at all of those,” he said while highlighting the numerous implementations by his administration, such as the “Because We Care” grant along with the other investments being made in the traditional sectors, that are aimed at diversifying the economy.

Last week, Senior Minister with Responsibility for Finance, Dr Ashni Singh, during the announcement of the across-the-board increase for public servants, also stated that the government will be giving a one-month tax free bonus to all members of the Discipline Services.

According to him, this will benefit 12,000 members of the uniformed services and will place an additional $1.5 billion of disposable income into their pockets.

Additionally, he said that for the first time, the bonus will be paid to the civilian employees of the Guyana Defence Force (GDF).

“…Work will start immediately to ensure that all persons receive their salaries, together with the retroactive amounts and in the case of the discipline services, together with the one-month tax free bonus no later than the designated pay day in December,” the minister told the public.

Moreover, last month, President, Dr. Irfaan Ali, announced $25,000 one-off tax-free bonuses for public servants, including teachers, members of the disciplined services and employees of semi-autonomous agencies and public enterprises across Guyana.

He stated that it will bring benefit to 67,000 workers across the spectrum of these categories; 67,000 workers at a cost of $1.7 billion.

Also, pensioners across the country will also receive a $25,000 bonus, while persons living with disabilities will receive $35,000.

According to President Ali, these grants will benefit over 72,000 pensioners at a cost of $1.8 billion and 19,000 persons who are registered on the public assistance register at a cost of $660 million; this too will be paid in December.

He had also announced that teachers cross Guyana are set to benefit from major adjustments to their salaries and allowances.

According to President Ali, the new adjustments to teachers’ salaries, and interventions will accumulate to a total of $1.9 billion in additional disposable income for the country’s educators.

All graduate teachers who are holders of a relevant bachelor’s degree from the University of Guyana, a degree-awarding institution under the Guyana Online Academy of Learning (GOAL) programme, or a degree certified by the National Equivalency Board, will be moved to the maximum point of the scale applicable to the post they currently occupy.

This, the President said, will benefit over 4,000 teachers at an additional annual cost of $1 billion, effective from December 1, 2023. Additionally, teachers will receive an education allowance of $ 10,000 monthly for holders of a bachelor’s degree; this allowance, he said, would be equivalent to $120,000 annually.

Notably, these are just some of the benefits.