Latest update January 18th, 2025 7:00 AM
‘Big budget but little for the people’ – Norton’s reaction to govt.’s $1.3 trillion budget
By Renay Sambach
Kaieteur News- Leader of the Opposition, Aubrey Norton, has dismissed the government’s $1.382 trillion 2025 budget, describing it as a “big budget” that will bring “little benefit” to the people of Guyana.
Norton shared his criticisms during an interview with News Source, following Finance Minister Dr. Ashni Singh’s presentation of the budget in the National Assembly on Friday evening.
One of Norton’s key critiques centered on the increase of the income tax threshold to $130,000, which he argued does not benefit the “small man.” According to Norton, “You just said the minimum wage… is $130,000, which means there is no relief for the small man because he is already at the threshold or below the threshold. So, the measure doesn’t apply to the small man.”
Norton also criticized the government’s tax policies, calling them “self-contradictory” and inadequate for addressing the needs of lower-income earners. He pointed to the unchanged VAT rate as a missed opportunity for broader relief.
Leader of the Opposition, Aubrey Norton
“If this government was serious about using tax measures to help everyone… the average Guyanese would have benefited more if they had brought the VAT down from 14% to 10% because what that means is that every Guyanese who going out there and purchase, they will be spending less because they are paying less VAT,” he explained.
The Opposition Leader also criticized the announced one-off $100,000 cash grant for women with newborn babies, arguing it falls short of addressing the real costs of raising a child.
“I don’t know if they know the hospital bill they pay. I don’t know if they have an idea what it costs to start a child. $100,000 is nothing of consequence, and if they go to a private hospital, the $100,000 done get knocked out,” Norton said. He further criticized the government for failing to explain the intended impact of such measures.
“Tell us what it is intended to do, how it is going to impact the society. You didn’t say anything about that,” he added.
Moreover, Norton expressed skepticism about other tax deductions, including the additional $10,000 per child tax deduction. He argued that such measures do not benefit those with lower incomes. “Now that is not applicable to the small man, because the threshold is $130,000 and they ain’t gon be paying any taxes. So, who this measure is for?” he asked.
According to Norton, the government’s failure to increase wages significantly undermines its tax measures. He reiterated the Opposition’s position that wages should have been raised to at least $200,000 to make such measures meaningful.
“If you give people a livable income, then they would have a high income, and then some of them would have applied. But… that is why I said my main focus would have been to reduce VAT, increase the income tax threshold more, and then more people would have benefited,” Norton said.
On the old-age pension increase, Norton did not hold back, calling it “a joke.” He criticized Finance Minister Singh for presenting the increase as substantial, stating, “Old Age Pension moved from $36,000 to $41,000, which is an increase of $5,000. That cannot help pensioners.”
Norton accused Singh of using percentages to hide the incompetence of the government’s spending.
“He sought to hide the incompetence… using percentage. That is one of the first things he did,” Norton argued. He also questioned the government’s priorities, pointing to construction projects that lack adequate planning for staffing and resources.
“You are announcing how many schools you are building. You are announcing how many hospitals you are building, but you’re not telling us where you’re getting the nurses, the doctors, and the teachers to staff them, because they are presently understaffed,” Norton said. He also accused the government of using such projects as avenues for wastage and corruption.
Norton called the $1.3 trillion budget “garbage,” claiming it lacks proper planning and prudent management of Guyana’s oil resources.
(‘Big budget but little for the people’ – Norton’s reaction to govt.’s $1.3 trillion budget)
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