With approximately two months remaining in the year, the Government of Guyana has not yet tapped into the $5 billion allocated in the 2023 National Budget to implement key cost of living measures.
During a recent press conference, Vice President Dr. Bharrat Jagdeo faced questions regarding the allocation and its intended use. He clarified that the $5 billion remains untouched, stating, “The $5 billion is still there. It’s not like it’s been expended as yet.”
He went on to mention, “So there are some ideas already — I’ve seen some ideas floating about how to utilize, but there’s been no final decision as to what will go where, but it’s sitting in the treasury.”
In January of this year, $5 billion was earmarked for additional measures to mitigate the impact of rising living costs in Guyana. Finance Minister, Dr. Ashni Singh had attributed the cost of living challenges to global developments but assured the public that the government was committed to collaborating with stakeholders to implement interventions addressing these issues.
The $5 billion allocation was intended to be utilized following consultations with various communities.
In August, Jagdeo was asked for an update on the sum and emphasized the government’s commitment to responsibly distributing these funds to alleviate financial burdens faced by the population. He revealed plans for a national consultation to seek feedback from various segments of society, ensuring that interventions are directed where they are most needed.
This announcement was in response to criticism from the parliamentary opposition, who accused the government of neglecting the working class and poor, highlighting the absence of salary and wage increases for crucial sectors like teachers, police, the Guyana Defence Force, and public servants.
However the most recent line of questioning spurred from a letter to the editor by Opposition Member of Parliament, Annette Ferguson that was published in various sections of the media. In the letter she called for updates on the spending and raised concerns as to whether the money is still in the treasury.
In the recent press conference, Jagdeo did not provide an update on the community consultations, leaving uncertainty about when a firm decision regarding the use of the $5 billion will be made by end of year.
With Guyana approaching its next budget, it remains to be seen whether the funds will be appropriately distributed in the interim or if they will roll over to the 2024 budget, potentially leaving an allocation for cost of living relief measures next year in question.
