Vice President, Dr. Bharrat Jagdeo recently dismissed the opposition’s criticisms that the $100,000 cash grant and increased wages for public servants will lead to inflation and higher cost of living.
At his press conference last week, Jagdeo described the opposition’s stance as contradictory and politically motivated. He specifically responded to former Minister of Finance, Winston Jordan’s remarks on the grant’s potential inflationary effects, and dismissed them as baseless. “What should we do, stop paying it because it’s going to be inflationary?” he asked. He underscored that the one-off nature of the payout can be accounted for in the government’s framework.
The Vice President then highlighted the inconsistency and duplicity in the opposition’s arguments, pointing out how they simultaneously claim the cash grant is inadequate while warning that it will drive up the cost of living. “They argue the cash grant that we’re giving out is not enough… but then they’re saying, ‘Oh, they shouldn’t be spending so much because it will be inflationary; it will increase the cost of living,’” Jagdeo said.
He continued, “You have to make up your mind… are you in favor of the cash grant or not? Because you can’t then come and say it’s too little, pay more, and then on the other hand say this little is too inflationary.”
Further, Jagdeo acknowledged that increased money in the system could have some impact but highlighted measures the government has implemented to manage the cost of living. He pointed to subsidies on utility bills, mortgage payments, transportation costs, and fuel prices as steps to reduce financial burdens on citizens.
Jagdeo also addressed cultural practices among some businesses that may drive up prices during wage increases. “Sometimes people do that, some of the unscrupulous businessmen… They believe when you pay out more money in the public sector, they should raise their prices,” he explained. On the issue of increased prices for food items, Jagdeo avoided divulging much information but noted it is something the government is monitoring.
Moreover, he accused the opposition of seeking to undermine initiatives designed to benefit citizens, including the cash grant. “They want to make it look flawed, not recognizing the importance of it and how much time it takes to deliver on a major initiative that will end up with the citizens of this country getting over $60 billion,” he said.
