–Jagdeo says; confident that macroeconomic framework could accommodate cash-grant initiative without inflationary impact
AS Guyana continues to chart a bold course towards national development, the opposition has attempted to cast doubt on the positive impact of the $100,000 cash-grant initiative which will put approximately $60 billion into the pockets of Guyanese 18 years and older.
Addressing these concerns, Vice president, Dr Bharrat Jagdeo, confidently affirmed that the current economic framework is robust enough to sustain this monumental venture without negative effects.
Speaking at a People’s Progressive Party/C (PPP/C) press conference last Thursday, Dr Jagdeo shared that the PPP administration has done a careful analysis to ensure the initiative aligns with the nation’s macroeconomic objectives and constraints.
“We keep a tight look at the real sector and how the real sector is growing.
“Inflation is a combination of several things. It is, on the fiscal side, tied to expansionary fiscal policy or to lose monetary policy. And trust me, we are examining all of these variables.”
Dr Jagdeo emphasised that the government’s approach remains data-driven, balancing the need for immediate relief with long-term economic stability. The General Secretary noted that among the reasons the government is optimistic about the impact the grant will have on the economy is because the grant is not a reccurring expenditure; ensuring that economic strain is placed on neither the public nor the government’s budget.
“We believe that the resources we are paying out through the cash grant could be accommodated in the macroeconomic framework without it being inflationary,” he explained.
The $60 billion initiative, designed to place much-needed funds directly into the pockets of Guyanese citizens, is seen as a strategic move to improve livelihoods while safeguarding the economy.
Dr Jagdeo clarified that while this initiative is a significant step, it does not guarantee a similar disbursement of the same scale in the following year. “It doesn’t mean next year that you have to pay out 60 billion more,” he remarked.
Looking ahead, Dr Jagdeo gave the asurance that the administration remains committed to additional interventions aimed at directly benefiting citizens. These measures will align with the government’s long-term goals to secure sustainable growth and development for all. As he stated, “As we get resources consistent with our macro plan and consistent with the long-term goals of the country, there will be short-term interventions from time to time to help people directly,” the Vice President said.
