$25,000 per household cash transfers in relief package – Ali

COVID-19 pandemic

…Joint Services to receive 2-week tax-free bonus

In light of the negative impacts of COVID-19 on citizens, the Government has announced that every household will get $25,000 in direct cash transfers. The Government plans to have this money distributed through a door to door, voucher system.
The $25,000 per household cash transfer was among the measures President Dr Irfaan Ali announced would be in the emergency budget, during a press briefing on Monday. According to Vice President Bharrat Jagdeo, several mechanisms for delivering the money were initially examined.

“We’ve had numerous challenges, how to get the money to people as swiftly as possible. There’s been a system where people could register online but many people in the rural areas, hinterland and even in Georgetown, can’t go and register online. They don’t have access to WiFi,” Jagdeo said.
“Then we were concerned that if we gave the money to the NDCs (Neighbourhood Democratic Councils) alone, then maybe you would have a lack of accountability. One of the reasons we decided to move away from the targeted approach, we know if it’s $25,000 per household, some wealthier families will get the monies too. We’re hoping they don’t take it,” he added.
According to Jagdeo, they settled on having teams fully decked out in Personal Protective Equipment going door to door and distributing the money. He noted that the vouchers persons will sign for will likely feature consequential numbers, to aid in the accountability of the exercise. He explained that each home will be eligible for one voucher.

“But if we sent out teams to say, you decide which household, it could be done in an arbitrary fashion and often with discrimination. So, an extensive form has been developed, that has the name of the recipients, the ID card etc, particulars. The teams are going to go out, with their vouchers, properly attired with PPEs, go to the homes with a card of vouchers.”
Another consideration was the fact that there could be multiple households in one house. In such a case, Jagdeo noted that the second household would have to fill out the form in order to make a case for a second cash transfer to the house.

Joint Services bonus
Meanwhile, Ali also announced that members of the Joint Services will be receiving a two-week tax-free bonus. This, therefore, means that the Guyana Police Force (GPF), the Guyana Fire Service and the Guyana Prison Service will benefit.
Joint Services previously received a tax-free bonus implemented by the former People’s Progressive Party (PPP) Government, until the measure was discontinued by the former A Partnership for National Unity/Alliance For Change (APNU/AFC) Government back in 2015.
“In order to support our men and women in uniform, to ensure we do all that is possible within the constraints of the economy, we are announcing a two weeks tax-free bonus for the Joint Services,” President Ali said.
During his inauguration speech last month, President Ali had announced that the Government had already started work in securing an initial sum of $4.5 billion in emergency funds to help Guyanese at the household level.
Many Guyanese have felt the effects of COVID-19 on an economic level, with businesses closing their doors, layoffs and a slowdown in the circulation of money. This was compounded by the political paralysis Guyana found itself in from the elections in March 2020 until Dr Ali was sworn in on August 2, as the previous Government refused to concede defeat.
When COVID first arrived in Guyana earlier this year, the former A Partnership for National Unity/Alliance For Change (APNU/AFC) Government had taken steps such as closing its borders to mandating that only essential businesses open their doors.
During its five-month extension in office, the former Government did not provide any economic stimulus for the remaining businesses which remained open. Guyana has also not had a budget since the last one was passed in November of 2018. (G3)