notes oil revenue funds less than 30 per cent of Guyana’s Budget

critiques past economic policies, advocates for prudent management

IN spite of government critics propagating a form of unpredictable economic policies, Vice President Dr. Bharrat Jagdeo has delineated the development strategies of the People’s Progressive Party/Civic (PPP) administration, which are backed by prudent management aimed at improving the standard of living for citizens.

In a recent interview on the show “Election Insights,” he provided an in-depth analysis of various current issues and elaborated on the government’s successful efforts in maintaining a sustainable economy.
The Vice President emphasised the comprehensive nature of Guyana’s trillion-dollar+ 2024 budget, which provides a comprehensive view of the country’s developmental path.
In response to questions concerning oil revenue, Dr Jagdeo said that it funded less than 30 per cent of the budget.
This year’s budget outlines several initiatives to provide disposable income to citizens, as pointed out by the Vice President.
Despite the rhetoric from critics advocating for the government’s complete sharing of oil revenue with citizens, Dr. Jagdeo emphasised the unsustainability of this approach.
He noted: “It’s the same economic philosophy that caused us in the 90s to become the most heavily indebted country in the world. We lived above our means for a short period as a country and then we burdened the next generation forever. It took us 15 years to get out of that hole.”

The Vice President then pointed out that public sector wages and salaries, in central government, public corporation and statutory bodies, have grown from 2020-2024 by $90 billion.
Adding to this, he said that the pension has grown by approximately $20 billion.
Within a short span of three years, the current administration under the leadership of Dr. Irfaan Ali has taken significant steps to enhance the welfare of the elderly population. An example of such a measure is the increase of the old-age pension to $36,000 upon the passing of Budget 2024. The amount stood at $20,500 at the commencement of the government’s term in 2020.
Under the previous APNU+AFC government, the pension in 2015 moved from $13,125 to $17,000.

In 2016, it increased from $17,000 to $18,200 and in 2017 it went from $18,200 to $19,000.
Further, old-age pension increased from 19,000 to 19,500 in 2018; just $500 more. And in 2019, despite passing a $300.7 billion budget, the elderly only saw $1,000 more on their pension; the final figure being $20,500.
Aside from direct cash transfers, other measures that senior citizens have benefitted from, include the reintroduction of water subsidy which has benefitted over 27,000 pensioners and provided them with additional disposable income of $200 million per annum.
While highlighted some other initiatives by the government, which have contributed to improving the well-being of citizens’ lives, he turned his attention to the ‘Because We Care’ cash grant.
This year, the ‘Because We Care’ cash grant has been increased to $40,000, coupled with the $5,000 uniform allowance, placing over $9 billion into the pockets of many parents.
Last year, a total of 201,281 public and private school students benefitted from the initiative, which saw some $8.1 billion being expended. The undertaking fits into the PPP/C government’s promise to provide financial support to families, improve attendance, and promote better attentiveness at school.

Speaking more on measures by the government, he then noted, “$200 billion has been spent on developing 40,000 house lots. The cost of developing one of those house lots is about $5 million,” while explaining that the house lots are being sold for way less.
“Where do you think this is going back? It’s to our people,” he said.
He also noted that healthcare is being boosted under this government and 12 new state-of-the art hospitals are being built across the country.