Latest update January 23rd, 2025 7:40 AM
PSC praises govt. for ‘impactful’ $1.3trillion budget
Kaieteur News- The Private Sector Commission (PSC) has applauded the government’s $1.382 trillion 2025 Budget calling it “forward-thinking and impactful.”
The 2025 budget was presented last Friday by Senior Minister in the Office of the President with Responsibility for Finance and the Public Service. This year’s budget is a 20.6% increase compared to Budget 2024.
PSC praises govt. for ‘impactful’ $1.3trillion budget
In a statement, PSC stated that the policies outlined by Minister Singh reflect a clear commitment to fostering inclusive growth, reducing inequality, and creating an enabling environment for businesses to thrive. “The budget, with a total expenditure of $1.382 trillion, is a testament to the government’s dedication to ensuring that the benefits of Guyana’s unprecedented economic growth are shared equitably among all citizens,” the private sector body said.
PSC underscored that it is heartened by the government’s targeted measures to sustain the momentum of the country’s economy which received a 43.6% increase in Gross Domestic Product and growth in non-oil sector in 2024.
“The Commission recognizes the profound impact of the government’s fiscal reforms on the lives of Guyanese people. The significant increase in the personal income tax threshold from $100,000 to $130,000 monthly, coupled with a reduction in the first tax band from 28% to 25%, will increase disposable incomes for families and stimulate domestic spending,” it was noted.
PSC stated that the introduction of non-taxable thresholds for overtime earnings and secondary employment income underscores the government’s understanding of the realities faced by the working population.
“Social measures such as the increase in old-age pensions, public assistance, and the Because We Care grant reflect the government’s deep commitment to improving the standard of living for vulnerable groups. These initiatives, coupled with the abolition of bridge tolls, will alleviate financial burdens on families while promoting greater mobility and economic participation,” it was stated.
PSC said it is encouraged by the government’s efforts to maintain macroeconomic stability, address inflation, and invest in resilient infrastructure, which are critical to fostering a strong and sustainable economy. The Commission underscored that the continuation of measures to contain freight costs reflects a pragmatic approach to shielding businesses and consumers from external shocks, ensuring economic resilience.
Moreover, in relation to the business community PSA welcomed the removal of VAT on critical inputs such as agricultural machinery and backup generators. The Commission explained that these measures not only reduce operating costs for key industries but also align with efforts to diversify the economy and strengthen non-oil sectors such as agriculture and manufacturing.
The government was commended for its accelerated depreciation provisions for poultry farmers’ investments. PSC called it a proactive approach to support food security and boosting the agro-processing sector.
“Budget 2025 will enable continuous private sector growth, empowering businesses to drive innovation, create jobs, and build a strong, sustainable economy that benefits all stakeholders,” it was added. PSC is looking forward to working with policymakers to ensure the successful implementation of the initiatives outlined and committed to advocate for further policies that enhance Guyana’s economic competitiveness and social well-being.
(PSC praises govt. for ‘impactful’ $1.3trillion budget)
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