People’s Progressive Party (PPP) General Secretary Bharrat Jagdeo reaffirmed the government’s commitment to easing the rising cost of living, outlining the series of initiatives aimed at relieving financial pressures on citizens.
Speaking at a press briefing on Thursday, at Freedom House, Georgetown, Jagdeo emphasised that the administration has made significant efforts to maintain stable prices in key areas of the economy.
Jagdeo highlighted that five of the six major drivers of living costs —transportation, electricity, water, internet, and mortgages— have remained steady or decreased since 2020, areas where the government holds direct control.
“We have pointed out that of the six major drivers of cost of living, the five that the government had a role in – transport, electricity, water, internet and mortgages – the figures have remained constant from 2020 and in some cases are lower than 2020,” he said.
He acknowledged, however, that food prices, the sixth and most variable factor, remain unpredictable due to global market shifts. While the government has implemented policies such as tax reductions to mitigate the impact, food prices continue to fluctuate.
“The one component of cost of living – food prices – that one is fluctuating. And we have gone through supply responses by removing taxes and a whole range of stuff, hoping to attenuate that. But it is fluctuating,” the PPP General Secretary said.
Dr Jagdeo defended the government’s approach, saying, “…yet they (critics) say we are insensitive to it. If we were insensitive to it, we would not have done what we have done, which even the developed world has not done.”
Government Strategies to stabilise costs
The PPP/C government’s measures designed to tackle rising costs and protect citizens, include:
* Fuel Cost Absorption: The government has reduced the excise tax on fuel by 50%, saving citizens approximately $80 billion annually. This decision has prevented significant fuel price hikes, which could have seen the cost of gasoline and diesel rise by $500 per gallon.
* Electricity Subsidies: To avoid rising electricity costs, the government is seeking nearly US$70 million in additional funding to subsidise fuel costs for Guyana Power and Light (GPL) Incorporated. This intervention aims to maintain stable electricity prices for households and businesses.
* Reduction in Water Rates: Water rates have been reduced by 5% since 2020, despite higher operating costs. Additionally, a $200 million investment is being made in new water treatment plants, ensuring better water quality and broader access for citizens.
In addition to cost management, the government has implemented a variety of social and economic support programmes, including:
* Public Servant Wage Increases and Pensions: The administration has allocated $90 billion to raise public servant wages, while pensioners have seen a significant $20 billion increase in disposable income, helping them cope with rising expenses.
* Part-Time Employment Program: An annual investment of $10 billion supports a part-time job program benefiting 15,000 people, particularly women and single parents. The program has recently expanded into the hinterland regions, offering employment opportunities in more remote areas.
* Support for Farmers: To counter the rising cost of fertilisers, the government has provided subsidies to farmers, aiming to keep production costs lower and maintain stable food prices for consumers.
These measures are part of the administration’s broader strategy to ensure economic resilience and household relief in the face of global economic fluctuations.
Since 2020, the government has injected over $200 billion into the economy through targeted relief and growth initiatives, enabling the creation of approximately 60,000 jobs across the public and private sectors. These actions have helped to stabilise the economy despite challenges such as the COVID-19 pandemic and inflationary pressures.
On October 16, 2024, President Dr. Mohamed Irfaan Ali announced a one-time cash grant of $100,000 for every citizen aged 18 and above, designed to provide immediate financial relief. This grant replaces the previously announced $200,000 household grant to avoid potential conflicts and streamline distribution. The president also revealed a major educational reform: starting in January 2025, all tuition fees for government-run technical and vocational institutions, including the Guyana Industrial Training Centre, Carnegie School of Home Economics, and the Guyana School of Agriculture, will be abolished.
This initiative will benefit an additional 3,000 students, making vocational education more accessible to the public.
The PPP/C government continues to implement wide-ranging measures to address the cost-of-living challenges, with Bharrat Jagdeo underscoring the administration’s dedication to supporting households through these difficult times. With initiatives in place to stabilise costs and boost employment, the government remains focused on ensuring that Guyanese citizens are shielded from the worst impacts of inflation and global economic turbulence.