Why targeted cash grants make sense

Jan 23, 2026 Peeping Tom

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(Kaieteur News) – The President is correct. Universal cash grants are not sustainable. They are also not fair. When a billionaire and a pauper receive the same sum of money, something is clearly wrong with the policy.

The last cash grant is believed to have cost the treasury more than G$60 billion. That is an enormous amount of money for a small country like Guyana. Each recipient received G$100,000. More than 600,000 people were said to have registered for the grant. That number is troubling. It appears to be higher than the adult population of the country.

This raises serious questions. Were there duplicate applications? Did large numbers of expatriate Guyanese also register? If so, that was a mistake. Public funds should first and foremost benefit people who live and work here and who contribute to the economy daily.

A universal cash grant is a payment made by the government to all persons within a defined group, usually all adult citizens, without any consideration of income or need. Every eligible person receives the same amount, whether they are wealthy or poor, employed or unemployed. No means testing is applied and no proof of hardship is required.

While universal cash grants are easy to administer and politically popular, they are often criticised for being inequitable and costly, since scarce public funds can find their way into the hands of persons who do not need financial assistance.

Paying a universal cash grant one, two or even three times a year is simply not sustainable.  It puts tremendous pressure on the treasury. It also limits the government’s ability to spend on long-term development such as health care, education, roads, drainage, and security.

The People’s Progressive Party/Civic understood this reality long ago. That is why it promised targeted cash grants rather than universal ones. Targeted cash grants are designed to help people who genuinely need assistance. They are focused. They are fairer. And they are more affordable.

A targeted cash grant means that support is given to a specific group that is facing hardship. It is not given to everyone regardless of income or circumstances. The goal is to protect the vulnerable and support those who are struggling to make ends meet.

Guyana already has experience with targeted cash grants. A recent example is the grant given to fisherfolk. Many fisherfolk have been experiencing poor catches. Rising fuel costs and changing weather patterns have added to their difficulties. The government responded by providing a cash grant to this sector. That is a textbook example of a targeted cash grant. It was aimed at a group facing real economic stress.

There is no good reason why every adult Guyanese should receive a G$100,000 grant. A millionaire does not need it. A senior executive does not need it. Someone earning hundreds of thousands of dollars per month is not facing the same challenges as a low-income worker.

Under a universal system, a multimillionaire and an entry-level public servant receive the same amount. That public servant may earn less than G$120,000 per month. The millionaire may earn that amount in a day. Treating them as equals in this context is neither just nor sensible.

A better approach would be to target the next cash grant to low-income workers. This can be done in a clear and transparent way. All persons earning less than G$150,000 per month should qualify for a G$100,000 cash grant. They would be required to declare their income.

To qualify, persons should also show that they pay taxes to the Guyana Revenue Authority. This is important. It encourages participation in the formal economy. It rewards compliance. It also helps to reduce tax evasion.

All pensioners should automatically receive the cash grant. Pensioners often live on fixed incomes. Many struggle with rising food prices, transportation costs, and medical expenses. Supporting them is both humane and responsible.

This approach ensures that public funds go where they are most needed. It also ensures that people who contribute to the system benefit from it. It strengthens the link between taxation and public support.

The same principle should apply to the Because We Care Cash Grant. This programme is important. It helps parents with the cost of sending their children to school. But it should also be better targeted.

Only students whose parents have a combined income of less than G$250,000 per month should receive this grant. Parents should also be required to show that they pay taxes. This ensures that assistance is directed to families who truly need it.

Targeted cash grants are not about denying help. They are about fairness. They are about sustainability. They are about using scarce public resources wisely.

Guyana has an opportunity to do better. By moving away from universal cash grants and embracing targeted support, the country can protect the vulnerable while safeguarding the future. That is smart policy. That is responsible governance.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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• budget, cash grants, Peeping Tom, Public funds

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