…outlines post-election economic relief plan to confront cost of living
Vice President (VP) Bharrat Jagdeo has confirmed that while the People’s Progressive Party/Civic (PPP/C) Government will not issue any new cash grants before the September 1, 2025, General and Regional elections, Guyanese can expect a flood of financial support measures, particularly direct cash transfers and increases in stipends, when the party is re-elected to office.
Speaking at his weekly press conference on Thursday, Jagdeo reaffirmed the party’s intention to fulfil its campaign promises, emphasising that more cash grants, higher wages, and expanded support for vulnerable groups are part of its long-term plan to ease the cost of living.
“I can assure you there will be lots of cash grants after the elections – but not before,” Jagdeo declared. “We are a party – you know, once we put it there in our manifesto… there will be cash grants and increases.”
In December 2024, the Government began the distribution of the $100,000 cash grant per adult citizen. Approximately 600,000 persons were eligible for the grant, of which, to date, more than 500,000 cheques have been distributed.
Cost of living
According to the VP, the initiative is part of the administration’s dual approach to tackling the cost of living by providing disposable income while simultaneously reducing expenses for households through subsidies and tax relief and increasing disposable income through higher earnings and direct support.
Jagdeo pointed out that the Government had already done extensive work to cushion households from global economic shocks, especially those caused by the COVID-19 pandemic and the war in Ukraine.
He identified six primary areas of concern for most Guyanese households: electricity, water, transportation, internet, mortgages, and food. The Government has subsidised electricity and water bills, kept fuel prices low through heavy subsidies on gasoline and diesel, reduced mortgage interest rates, and liberalised telecommunications to offer faster internet at better rates.
Despite these interventions, food prices remain a challenge. Jagdeo explained that even locally grown food items, like cassava, have seen price surges due to logistical costs and market imbalances.
“Our cassava production in Region Three jumped from 3 million pounds to 20 million pounds, but the price still went up – from $40 per pound in Parika to $120 in other markets,” he noted. He said that while the Government is actively promoting agriculture and expanding farmers’ markets, food inflation is a global issue that requires continuous innovation and investment.
“So those five areas we had success in, because there were things we could do policy-wise. On food items, we’re not so successful because even for the things we produce in Guyana, there was an increased production – they went up… We have to look at tackling that issue. But we’ve been honest about it. And we tackle the things that are under our control. The five items that push prices up. But food prices were different,” Jagdeo said.
He also outlined a broad roadmap for more relief measures post-elections. These include expanding public transportation, increasing wages and pensions, boosting stipends for part-time workers, and Community Support Officers (CSOs).
“Already the public servants – it’s 120 billion dollars more per year they earn. We see it reflected in more vehicle purchases. Pensions would be increased, public assistance increased… So, we have to focus on this issue from two angles. One, getting more money in people’s pockets by getting better-paying jobs for them. Two, ensuring the taxation system allows people to keep more money in their pockets.”
More relief
Jagdeo explained that the Government is pursuing a multi-pronged strategy to help families: first, by increasing earnings through better jobs and skills training; second, by lowering taxes to put more money in people’s pockets; and third, by directly reducing household expenses in areas like education, healthcare, and housing.
He highlighted the Government’s education transport grants and school feeding programmes, which reduce the cost burden on families. In health, investments in tertiary care and support for chronic illnesses like dialysis and cancer are expected to cut out-of-pocket expenses significantly.
Jagdeo reiterated the Government’s support for low-income homeownership, noting its efforts to distribute house lots and support home construction and upgrades. The administration is also moving ahead with plans to reduce electricity costs by up to 50 per cent as part of the gas-to-energy project and a major solar farm development on the Essequibo Coast.
Other cost-reduction measures on the horizon include lowered cooking gas prices and broader training programmes aimed at empowering youths to earn higher incomes through skilled employment.
Jagdeo concluded with a powerful message to Guyana’s youth: “We are saying, give us six months of your time, and we’ll give you a skill that allows you to earn ten thousand dollars a day – not just a one-time handout.”
