The government has implemented deliberate initiatives and policies over the last four years to address the rise of global food prices and cushion the cost of living for Guyanese.
This was highlighted by President Dr Mohamed Irfaan Ali, as he detailed the impacts of the government’s deliberate measures during a live broadcast Friday evening.
The president reminded that the rise in global food prices and the costs of transportation, goods and services resulted from the Russian-Ukraine war, and the global pandemic, among other disruptions.
In the European Union, food price inflation increased from the last quarter of 2021 to reach 3.5 per cent in January and 7.5 per cent in May 2022.
In Latin America and the Caribbean, food price inflation surged steadily from January 2022 to 81.6 per cent by September 2023.
Food price inflation in the United States increased to 10.9 per cent in July 2022, the highest since 1980.
“This is the global environment in which we are a part of and operating. When you look at our figures and the inflation rate for Guyana compared to all of these regions, it is remarkable in the way that we have been able to manage our economy…And the way we have been able to cushion these costs,” the president said.
In 2023, Guyana’s food inflation rate was 3.8 per cent, 7.8 per cent in Jamaica and 81.67 per cent in the Latin American region.
The low food inflation rate in Guyana is because of the deliberate investments and measures implemented by the government to boost food production by providing the necessary support to the poultry sector and farmers.
“This is not by any accident. This is by the deliberate interventions of the government. This is by the policies and programmes in the budget that are buttressing the economy and creating an environment that leads to stability,” the head of state explained.
The government implemented a slew of measures to further reduce food inflation such as the removal of value added tax (VAT) on fertilisers, agrochemicals, pesticides and several inputs in the poultry industry, at an annual estimated cost of $262 million.
And this does not include the more than $1 billion that was spent in 2023 to provide agricultural implements to farmers.
Further, to boost food production, the government removed VAT on machinery, corporate income tax, reversed drainage and irrigation (D&I) fees, constructed shade houses, farm to market roads and D&I infrastructures.
A broiler breeders facility was established to reduce the dependency on the importation of hatching eggs.
The rising fuel and freight costs were also addressed. Wages and salaries were also increased for public servants by more than $90 billion.
Additionally, measures to reduce cost of living included the taxes on building materials being waivered and the subsidies for utilities were restored.
VAT was also removed on medical supplies, electricity and water, saving citizens almost $3 billion annually.
To boost the income of many households, the government reinstated the ‘Because We Care’ cash grant, placing over $22 billion into the hands of parents over the last four years.
Old age pension and public assistance were increased by more than 75 per cent and 111.1 per cent respectively. The undertaking provided over $13.4 billion and $2.8 billion into the hands of these beneficiaries respectively.
Further to that, the one month tax free bonus to the disciplined services was reintroduced, placing $4.1 billion into the hands of the members.
President Ali underscored, “These things were removed by the last government…It is clear that our measures are working. It is clear that the measures that we are implementing brought tremendous relief to the population. If we had not implemented these measures the effects would have been severe…We want the best for all the citizens of this country.”
Before the end of 2024, President Ali has pledged to highlight more strategies that will increase disposable income at the household level and expand prosperity. [DPI]
