Finance Minister Winston Jordan yesterday announced plans to hike old age pensions by $1,200 and increase public assistance by $800 as part of a raft of measures to support the elderly.
During his presentation on the 2016 national budget in the National Assembly yesterday, Jordan announced that old age pensions would increase from $17,000 to $18,200, representing an increase of 7%, with effect from April 1.
Jordan’s inaugural budget had seen a $3,875 increase in the monthly pension last year, although it was criticised for the decision to withdraw monthly subsidies of $2,500 and $990 for Guyana Power and Light Inc (GPL) and Guyana Water Incorporated (GWI) bills previously enjoyed by pensioners. There had been calls by the main opposition PPP/C, which had introduced the subsidies, for their restoration.
Nearly 50,000 pensioners are expected to benefit from the latest increase, according to Jordan, who said that in the short space of eight months the coalition government has been able to increase old age pension by 38.7%, which he noted is the largest increase in recent memory and a testimony to its commitment to govern in the interest of all Guyanese. The APNU+AFC coalition had promised a “significant” increase in old age pensions during its election campaign last year.
He also said that systems will be put in place to further enhance and modernise the old age pension system through consultations and testing of an electronic payment system, with full implementation in all 10 Administrative Regions by 2017.
In addition, Jordan announced that public assistance will be increased from $6,500 to $7,300, which represents a 12% increase. Over 9,600 persons, he pointed out, will benefit from an almost 24% total increase since the new government took office last May.
He noted too that in an effort to ensure that persons with disabilities receive their benefits throughout the year without interruption or delays, the government will be issuing a one-year Public Assistance booklet to persons with permanent disabilities.
Jordan also announced that with effect from April 1, 2016, all citizens 65 years and older will no longer be required to pay for a driver’s licence and they will no longer have to pay a travel tax when travelling overseas on a Guyanese passport. However, he said they will still be required to pay the Airport Security Tax.
Jordan also proposed an increase in the pensions payable to former employees of the Guyana Telecommunications Corporation, while noting that they have “waged a prolonged struggle” to get their correct pension but were denied by the former PPP/C administration. The increases will be effective from April 1, 2016.
In addition, the minister also signaled plans to address what he dubbed “the plight” of former public servants and parliamentarians, whose current pensions, he said, neither reflect their years of service or the positions from which they retired. “This is because their pensions have been substantially eroded because of depreciation of the Guyana dollar and inflation over the years,” he explained.
Jordan said the government would continue to examine other ways of easing the burden on elderly citizens, having noted in his address that it would focus on “a holistic approach” for the improvement of services and provisions for the elderly.
