More seniors benefitting from pension increases than utility subsidies

More seniors are benefitting from the government’s increase of the old age pensions than from subsidies for electricity and water bills that had been instituted under the former government, APNU+AFC Member of Parliament Charrandass Persaud told the National Assembly on Monday.

In his contribution to the budget debate, Persaud, a representative of Region Six, said that while there is an estimated 40,000 persons in Guyana who fall under the category of pensioners, only 7,000 were qualified to get the subvention on electricity and water service charges from the Guyana Power and Light Inc (GPL) and Guyana Water Inc. (GWI) respectively.

Charrandass Persaud
Charrandass Persaud

He alluded to pensioners in areas like Canje Creek and Orealla, in Region Six, where there is no electricity or running water and who would not have been benefitting from the subsidies offered by the previous administration.

Additionally, he said that the subsidies were only payable to those who were of age and had the meters registered in their names.

Persaud noted that despite the government giving a reasonable justification for ending the subsidies offered to pensioners, the opposition continues to sell the impression that the decision was unjust and unfair.

But with the subsidies having been revoked from the selected few, Persaud said that all pensioners across Guyana would be able to benefit from the increase in old age pension.

Last year, the old age pensions saw an increase from $13,125 per month to $17,000 per month and they will see a further $1,200 increase come April 1.

“The subsidy would have applied to 7,000 people only, while this government’s increase would apply to all pensioners. That is what they are not getting, that is what they are trying to sell to the people 24/7 in the hope that they will buy it,” he explained.

He was further supported by fellow APNU+AFC Parliamentarian Hemraj Rajkumar who noted that less than half of the total number of pensioners in Guyana were actually benefitting from the subsidies.

“Now all we did was take the subsidies and put it so that everyone could benefit. We are not a discriminating government; every person must benefit, every person must enjoy the good life,” Rajkumar offered.

As of 1st April, over 50,000 pensioners will benefit from the increase in old age pensions. They will now receive a monthly pension of $18,200, while public assistance will rise from $5,900 to $7,300, representing a $1,400 increase.

“We made promises which are continued and kept by this government in providing a good life for our senior citizens and the less fortunate. It is a promise that has been kept and continued to be kept,” he added.

Cannot please everyone at the same time

Meanwhile, Persaud noted that while there have not been provisions for the increase in salaries for public servants in this year’s budget, the government has fulfilled its promise to resurrect the use of collective bargaining for the public service in increasing salaries for the public servants as mentioned in APNU+AFC manifesto of 2015.

In addition, he noted that the income tax rate remains at 30% but the income tax threshold was increased to $600,000 per annum to $660,000 per annum.

Persaud said that while the 2016 budget cannot please everybody, it was no haphazard “overnight budget” as it was put together by a “very competent team.”

“Mr. Speaker, the God Almighty cannot please everyone at the same time,” he added, before going on to question how the Finance Minister could have pleased everybody at the same time

“The opposition expects that this government would have the magic touch and make everything happen, but Mr. Speaker we have been sitting on the side as government for a measly eight months and there is 23 years of mess we have to clean up. And if they want to see what progress we made, they should go walk around Georgetown and if you can’t see, you can smell. You’d notice that it doesn’t stink anymore,” he further said.