Gov’t policies aimed at containing cost of living, cash grants not stand-alone solution– Minister Singh
Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, says the government has implemented a wide-ranging policy response to shield Guyanese from rising global inflation, while maintaining that cash grants will continue as part of a broader strategy to improve living standards.
Speaking on the Starting Point podcast hosted by Kiana Wilburg and Fareeza Haniff, Dr. Singh acknowledged public concerns over the cost of living, noting that inflationary pressures affecting Guyana are largely imported and driven by global developments.
He explained that rising commodity prices, geopolitical tensions, post-COVID supply chain disruptions and higher freight costs have all contributed to increased prices worldwide, including food and fuel. Against that backdrop, he said the government’s focus has been on limiting how much of that external inflation is passed on to local consumers.
Among the measures outlined were the complete removal of excise taxes on gasoline and diesel, which he said helped to contain and, in some cases, reduce fuel prices. He noted that lower fuel costs also benefit producers, particularly in agriculture, where diesel is a major input for farming and processing activities.
Dr. Singh also pointed to policies aimed at cushioning consumers from higher freight charges by limiting post-COVID increases in freight costs used to calculate import taxes. In addition, taxes were removed from a wide range of goods, including education and health services, medication, basic food items and construction materials.
On financing costs, he said the government implemented financial sector policies to keep interest rates low, noting that rates are now below five per cent, including for homeownership loans, compared to much higher levels in previous decades. He added that significant investments were made to expand domestic food production, given the importance of food prices in the consumer price index.
Turning to employment and incomes, Dr. Singh said more Guyanese are working now than five years ago, attributing this to job creation, business-friendly policies and expanded access to education and skills training. He highlighted initiatives such as technical and vocational training, the GOAL scholarship programme, free university education and the write-off of outstanding student loan balances.
Addressing the issue of cash grants and inflation, Dr. Singh said economic literature recognises that large injections of money into an economy can have inflationary effects if not supported by complementary policies. However, he stressed that the government does not view cash grants as a negative tool.
He noted that the administration introduced the COVID-19 cash grant for households, provided cash grants to adult Guyanese during 2024 into 2025, and has committed to offering cash grants on future occasions over the next five years.
While acknowledging the inflationary risks, Dr. Singh said the government intends to continue providing targeted support, emphasising that cash grants are only one part of a comprehensive policy framework. He said the ultimate objective is to ensure that national prosperity translates into community, household and individual prosperity.
According to Dr. Singh, the long-term goal remains economic empowerment, where Guyanese are equipped with the skills to secure good-quality jobs, support themselves and build household and individual wealth, with cash grants complementing, rather than replacing, those broader efforts.
