Amidst the crippling burden of poverty and exorbitant cost of living, President Irfaan Ali said during his speech during the 12th Parliament Special Sitting of the National Assembly that every home in Guyana will get a one-time cash handout of $200,000.
To loud acclaim from government Members of Parliament, Ali stated that this program, which would infuse $60 billion into the economy, is scheduled to start soon as authorities implement a fair and transparent distribution mechanism. Members of the Opposition who abstained from the session organized a demonstration outside the House to draw attention to the country’s cost of living issue and charges of corruption leveled against the administration.
- Advertisement -
President Ali emphasized the government’s commitment to putting the welfare of all Guyanese first. He noted that since taking office, the administration has taken several steps to increase disposable income, such as eliminating more than 200 taxes and fees that the previous administration had imposed, including the VAT on basic food, water, and electricity.
Other steps taken include raising the cap on low-income mortgage loans, doing away with taxes on the use of data for residential purposes, and removing the gasoline excise tax, which saves consumers over $90 billion yearly. Members of the disciplined services, teachers, and public employees received a $25,000 one-time, tax-free cash award last year as part of a $5 billion cost-of-living allocation.
President Ali stated, “This is how we are promoting prosperity, ownership, and the distribution of wealth… The resources and revenue of this country are being spent every single day to lift the lives of people.”
Later, during a press conference, Vice President Bharrat Jagdeo addressed questions about the definition of a “household” to allocate monetary grants. He mentioned the results of the most recent national census, which showed 264,000 homes, although he conceded that not every person may have been included. Jagdeo said that to ascertain eligibility, the government will use information from utility providers including Guyana Power and Light (GPL) and Guyana Water Inc. (GWI).
Jagdeo noted, “We have about 200,000 people who pay electricity rates who are on the GPL database…So clearly, if someone is paying their electricity bill that is going to be a household.”
He pointed out that utility data might not be enough to guarantee fairness, even though verification might be simple in some places. He emphasized the need for close examinations to stop system abuse and the involvement of the Auditor General’s Office to ensure accountability.
Jagdeo noted, “We try to see as far as possible how we can make it fair without people ripping off the system too. So, we still must work it through in great detail, but we believe we can do it… The aim is once it is a legitimate household. If you have a bill, that will be easily accessed.”
Furthermore, Jagdeo said that foreign nationals are ineligible for the grant of money, saying, “These are Guyanese families; if you are not a Guyanese household, you are not getting the money.”
The database will not, Jagdeo noted, contain information about people of regions 1, 7, 8, 9, and other coastal riverine districts. Due to the tiny size of the villages, Jagdeo said that these households can be readily confirmed in these situations and will receive verification from the Toshaos in those areas.
Payments will be split first among homes with several families living under one roof that can be easily verified by utility bills. To verify household identity, further steps will be taken for secondary households, such as leased houses in rural regions. According to Vice President Jagdeo, residents in homes with numerous buildings whose names are on utility meters must apply for the award individually.
Jagdeo remarked, “So, if you can prove that people are renting, you show that you are renting, then that’s an easy way that you have your own households.”
Predicted the Gas-to-Energy project, President Ali declared in his speech that Guyana will see a 50% decrease in energy bills by the end of 2025. It is anticipated that this action would greatly increase residents’ disposable income and infuse $250 million into the economy.
According to President Ali, “This $250 million injection by the Guyana government will positively impact disposable income.” He emphasized the prior difficulties encountered by Guyana Power and Light, which from 2015 to 2019 struggled to keep up with the rising demand for energy because of a lack of investment and inventory.
President Ali also disclosed intentions to require public sector workers to make at least $100,000 per month by the end of 2025. According to him, many workers would gain from changes made to the wages of several public sector categories and a raise in the income tax threshold from $65,000 to $100,000.
It was stressed by the Head of State, “This will see the disposable income of these employees increasing by more than 1 billion. This is how we build prosperity; this is how we reduce disparity, and this is how we build equity in the system.”
Beginning next year, parents will be able to deduct an extra $10,000 from their income taxes every month for each kid as part of a new income tax deduction program designed to benefit families. “This will increase the tax-free threshold for families with children,” the president remarked.
Ali outlined the increased income tax threshold that each parent will get for each kid, which is $120,000 above the pre-existing level. Asking if it will be taken out of the government agency on a monthly or annual basis, Jagdeo provided more clarification at his news conference. In his explanation, he said, “So, once they get the code that they are eligible, so the same way how they apply the exemption, so it has to be monthly because you pay your taxes which is deducted on a monthly basis; for example, you are earning a $120,000 a month, you get two kids, you get a code and you are now eligible of deductibles for two kids. The threshold how is $100,000 so you have to now pay taxes on the $20,000 because tax free threshold is $100,000 so your tax-free threshold now goes up to $120,000 so then you don’t have to pay any taxes.”
Additionally, every Guyanese citizen will get a $10,000 universal health care voucher in 2025, benefiting over 500,000 people and requiring an expenditure of over $5 billion in public health. The fundamental medical tests covered by the voucher are necessary to collect health statistics and stop the spread of non-communicable illnesses.
Finally, President Ali emphasized that the National Insurance Scheme (NIS) would get a one-time $10 billion infusion to assist those who are having difficulty collecting their entitlement payments. Specifics of this financial support will be included in the budget for the next year, “The universal health voucher will help us as we work to build a healthy, strong, and resilient population.”
The president emphasized that “this would allow contributors who would not have met the requirement to benefit from a cash injection that will support a better quality of life for them and allow them the opportunity to benefit from their contribution.” More than 3,800 people will gain from this effort.
