Guyanese Socio-economic Development and the 2024 Budget: Investments in Key Critical Areas for Growth

Jan 19, 2024 Letters

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Dear Editor,

It’s budget time in Guyana, and with this comes the promulgation of President Irfaan Ali’s Government’s strategic priorities to continue economic growth while uplifting the lives of all Guyanese. As with all budgets, this budget is a statement of how government policies will be funded and the sources of receipts.  The total budget has grown to $1.146 trillion compared to $781.9 billion last year, which is 46.6 percent larger than the 2023 budget. The remarkable success of this budget is that it has no new taxes on Guyanese and is fully financed without new taxes; funding comes from increase in receipts. Contributing to a healthy budget, the Guyanese economy grew an impressive 34.3 percent in 2023. Still, more significantly, the non-oil economy increased by 11.9 percent, according to the Finance Minister, Dr. Ashni Singh.

The importance of the budget is that it clearly outlines government priorities for the Guyanese people. According to President Ali, “All of these measures are aimed at increasing disposable income, putting more money in the pockets of people, bolstering income for vulnerable groups, and, of course, improving the system of services, governance, and the provision of services for our country.”  Beyond controlling macroeconomic challenges such as inflation, household income, increasing gross domestic product (GDP), and improving access to healthcare and education for all Guyanese, the budget also focuses on those Guyanese in need.

The priorities outlined are also aligned with the People Progressive Party plan for the prosperity of the nation for all Guyanese, as stated in their manifesto: “We will continue to promote good governance, respect for the Constitution and the human rights of all Guyanese, while fostering an economic environment where jobs flourish, and there is guaranteed income for people.”  The 2024 budget is rooted in these principles and supports that promise. An example of this policy is the “…expanding household and community disposable income by $10 billion. This means that $10 billion that was not [there] the year before is now available in communities across the country to be spent in the markets and local shops. A person with a low-income house, who now goes on this programme and gets $40,000 every month, can repay the low-income loan and still have $12,000 in their pocket every month. That is the impact of this policy,” According to Dr Ali.

In economic planning, governments build their budgets to satisfy seven crucial areas, which include (1) promoting economic growth, (2) reducing inequalities in income and wealth, (3) re-allocation of resources, (4) economic stability, (4) growing the economy, (5) management of public enterprises, (6) reducing disparities, and (7) providing employment opportunities.  As outlined by Dr. Ashni Singh, the 2024 budget satisfies these criteria while supporting the Government’s focus on socio-economic development priorities.

President Ali states this budget will “… stimulate spending, bolster income, and improve living conditions, addressing issues of cost of living,” Some of the significant direct impacts on Guyanese households and individuals include an allocation of $7 billion to increase food production to reduce prices, this will have an immediate impact across Guyana and a $8,000 increase to pensioners as well as an increase of $3,000 to those on public assistance. Considerable allocation to healthcare, including eye care for students and pensioners and $8,000 for cancer identification for treatment. Expansion of part-time jobs program with $10 billion budgeted.  Increasing access to healthcare with a deduction from their chargeable income for premiums paid for life and medical insurance up to a maximum of 10 percent of their income or $50,000 monthly, whichever is lower.  Household income increases with an increase in the monthly income tax threshold from $85,000 to $100,000.

In terms of the Socio-economic development of Guyanese, this budget shows a significant commitment to this concept based on its sector allocations. The Government is focused on access to healthcare, which is demonstrated by the $129.8 billion budgeted to continue the transformation of the health sector into one that meets world-class standards. This includes new and improved healthcare facilities and the training and development of qualified healthcare workers, including doctors, nurses, and other healthcare professionals. In the education sector, $129.8 billion has been budgeted for the continued transformation of the health sector into one that meets world-class standards. A budget of $78 billion has been allocated to develop further housing infrastructure countrywide, while $22.5 billion has been for improved drinkable water across the nation. Also, a total of $48.3 billion has been budgeted to pursue initiatives in social services directly impacting the poor and elderly.

Regarding food, $97.6 billion is budgeted to advance and catalyze agriculture development.  A $90.6 billion budget has been budgeted to pursue the government’s overall objective of the security sector. Given the budgeted amounts, this budget has a firm commitment to the development of Guyanese; the outcome would be improved quality of life for all.

In terms of improving governance and improved services to Guyanese households and businesses, the budget supports efforts in transparency, improving commerce, and building a more robust, technologically advanced economy. Guyanese stands to benefit directly from the 2024 budget, and their Government is making them the priority.

Respectfully,

Dr. Tilokie Arnold Depoo, Economist

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• Dr. Tilokie Arnold Depoo, Economist, Guyanese, Investments, President Irfaan Ali

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