Jagdeo says: $100B needed to fund PPP’s proposed cash grants, pensions

Aug 24, 2025 News

…but Guyana paid five-times the amount in taxes for Exxon in 2024 alone

PPP’s proposed increases for children’s grant, public assistance and old age pension to cost $100B annually – Jagdeo

General Secretary of the PPP, Bharrat Jagdeo

Kaieteur News – The People’s Progressive Party Civic (PPP/C) government paid five-times the amount last year, in taxes for Exxon, Hess and CNOOC – it would cost to fund the proposed increase to the ‘Because We Care’ children’s grant, old age pension and public assistance should the party win the upcoming general and regional elections.

The ruling party recently unveiled its 2025 manifesto which outlines the party’s plan to increase the ‘Because We Care’ children’s grant for students in public and private schools from $50,000 annually to $100,000. In addition, the PPP plans to distribute an annual $100,000 transportation support grant per child.

The party also plans to increase the old age pension from $41,000 to $60,000. Pensioners will also receive an annual transportation support grant of $50,000. Moreover, PPP proposed to increase public assistance from $22,000 to $40,000.

“All of these will transfer to these categories of people, those earning public assistance, the children of our country and the pensioners about $100 billion per year. That is what it will cost. Every year they will get that. So that is what these promises come up to,” General Secretary of the PPP/C, Bharrat Jagdeo said at his press conference on Thursday.

Jagdeo noted that this increase would be a gamechanger for pensioners, families and persons receiving public assistance. He said that his party plans to transfer direct benefits from the government to vulnerable groups and individuals who may be living in poverty or have difficult circumstances.

It is important to note that in 2024 alone, the government paid over $500 billion in income taxes on behalf of ExxonMobil Guyana Limited and its partners, Hess and CNOOC, under the terms of the 2016 Production Sharing Agreement (PSA) governing the Stabroek Block.

This means the amount paid in taxes for the three oil companies last year was five times the amount needed to fund the PPP’s proposed increases for the children’s grant, pensioners, and public assistance.

Notably, the Irfaan Ali-led PPP administration has made it clear that the Stabroek Block deal will not be renegotiated.

On the 2025 campaign trail, opposition parties, A Partnership for National Unity (APNU), Alliance for Change (AFC), and We Invest in Nationhood (WIN) are promising to engage ExxonMobil Guyana for better terms if elected to office. However, Jagdeo has dismissed the opposition’s promises as a political bluff and reiterated the PPP’s position not to renegotiate the deal.

He pointed to a clause in the contract that requires Exxon’s agreement before any renegotiation can take place, noting that the oil company has already made it clear it will not revisit the agreement. Jagdeo further explained that the PSA contains a stabilisation clause, which prevents the government from unilaterally altering its terms without facing financial consequences.

The PSA allows the oil companies to recover 75 percent of oil produced to cover investment costs, requires the oil companies to pay a 2 percent royalty to Guyana, and stipulates that the government must pay taxes to the Guyana Revenue Authority (GRA) on behalf of the oil companies from its share of oil.

ExxonMobil Guyana operates the Stabroek Block with a 45 percent stake, while Hess Guyana holds 30 percent and CNOOC Petroleum Guyana Limited 25 percent.

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children’s grant, Old Age Pension, People’s Progressive Party Civic, public assistance

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