As revenues from oil production continue to support extensive infrastructural development projects in Guyana, it is also providing authorities with the capacity to direct over GY$70 billion (approximately US$335.5 million) toward citizens’ welfare.
This has been done within a span of two years and was highlighted by the nation’s Vice President, Dr. Bharrat Jagdeo, who also presides over the oil sector.
At a recent media briefing, he reminded that government remains cautious about the prospect of direct cash disbursements to citizens, warning that such a course of action might precipitate the Dutch Disease.
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Instead of pursuing this option, the Vice President said the administration has been looking at a more targeted approach to aid children and the elderly. “So, let’s look at what we collected. In the first year, we withdrew about US$600 million [approximately GY$125.1 billion] in the oil revenues, and this year, we have about US$1 billion [approximately GY$208.5 billion] programmed to be received from oil and gas…Now, what did people get now that they didn’t get in 2020?” Dr. Jagdeo questioned.
Underlining the government’s efforts, he pointed out that the budget allocation for the school clothing programme has increased by GY$8.4 billion (approximately US$40.3 million) compared to 2020. Additionally, pensions saw an upswing from GY$20,000 (approximately US$95.9) to GY$33,000 (approximately US$158.3), amounting to an increased expenditure of over GY$14 billion (approximately US$67.1 million). “So, in two categories alone, our people are getting nearly GY$23 billion [approximately US$110.4 million] more in assistance,” Dr. Jagdeo said.
Highlighting the government’s creation of part-time job opportunities which employs around 14,000 individuals, the Vice President stated that this scheme represents an investment of GY$10 billion (approximately US$48 million). “Now that is about GY$33 billion [approximately US$158.3 million] more people are getting from just three initiatives and this is leaving out the (other forms of) public assistance etc.,” Dr. Jagdeo clarified.
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He also drew attention to the government’s endeavor to bolster the public service payroll, which had increased from GY$68.6 billion (approximately US$329 million) to GY$105.7 billion (approximately US$507.1 million) due to the influx of oil revenues. He said this increment, amounting to GY$37 billion (approximately US$177.5 million), is indicative of the government’s strategy to channel over GY$70 billion (approximately US$335.5 million) of oil revenues directly to its citizens.
Dr. Jagdeo reiterated his government’s commitment to this gradual and strategic approach for the utilization of oil revenues for social welfare purposes, as opposed to direct cash handouts. He emphasized also the importance of the government resisting such options in order to avert the repercussions of the Dutch Disease.
