By Samuel Gillis
PPP General Secretary and Vice President Dr. Bharrat Jagdeo has criticized AFC Leader Nigel Hughes for his inconsistent approach to the allocation of oil revenues for direct cash transfers to citizens.
Hughes had previously advocated for legislation that would enable all Guyanese to receive direct monetary transfers from oil profits, initially proposing that these payments should not exceed 10.5 percent of the annual revenue transferred to the Natural Resource Fund, which totals $568 billion.
However, Hughes recently stated that the AFC will consult with economists to determine a new proportion for these payments.
In response, Dr. Jagdeo has dismissed the 10.5 percent plan as impractical and unsustainable.
He argues that the direct cash transfer strategy could exacerbate economic issues, including the risk of Dutch Disease, which could negatively impact the country’s economy.
Instead, the PPP/C Administration is focusing oil revenues on capital projects in infrastructure, healthcare, and education, aiming to support long-term national development.
Dr. Jagdeo emphasizes that the PPP’s approach is designed to use oil revenue to benefit the country’s future rather than implementing what he views as a potentially harmful and unsustainable cash transfer system.