Guyanese Voices in the 2025 Budget

Jan 26, 2025 Letters

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Dear Editor,

It’s budget time in Guyana! Over the past week, we’ve seen a surge of comments from both supporters and critics regarding the budget and its implications for everyday Guyanese. This moment offers us an opportunity to review the budget and assess its potential impact on the lives of citizens across the nation. Let’s examine the allocations directly to Guyanese households and individuals within the economy.

President Irfaan Ali has articulated a compelling vision for 2025, stating, “THIS IS THE FUTURE we’re working toward — a Guyana where every citizen has a fair shot at success, and every family has the chance to live their best life.” According to Finance Minister Dr. Ashni Singh, this budget focuses on three major elements: fulfilling the promises made by the PPP government, ensuring the health and safety of every Guyanese, and striking a balance between immediate short-term priorities and the need for long-term economic growth, which is projected at a robust 10% for 2025.

A closer examination of the budget indicates that the government is indeed attuned to the concerns of the Guyanese populace. Over the past year, numerous reports have highlighted the challenges posed by rising prices and the escalating cost of living. Notably, one newspaper conducted a year-long series interviewing citizens nationwide about the impact of these high prices on their daily lives, reflecting the urgent need for effective government intervention.

To evaluate whether the 2025 budget meets its stated goals of supporting Guyanese households, we must scrutinize its funding priorities. To address the cost of living, the government has committed to several key initiatives, a significant reduction of 50% in energy costs is planned, which will directly alleviate financial pressure on households.  Lowering transportation expenses with toll reductions on bridges will benefit approximately 50,000 citizens, making daily commutes more affordable.  Eliminating fuel taxes on fuel aims to further ease the burden of transportation costs. And expanding employment opportunities with initiatives to create jobs will help increase household incomes.

Additionally, the government has allocated $9 billion to tackle economic challenges that may arise in 2025. This funding is expected to provide immediate relief to households by reducing their energy and transportation expenses.

The budget also includes provisions for the most needing help. The government plans to increase monthly pensions for about 76,000 pensioners to $41,000; approximately 40,000 individuals will receive a $5,000 increase in their public assistance benefits; every citizen will receive $10,000 to help access quality healthcare services; a one-off grant of $100,000 will be provided for every newborn, assisting families with early infant expenses, and an allocation of $10 billion has been set aside to ensure the continued viability of this essential program. These allocations are particularly crucial for individuals who lack alternative means to increase their income.

In terms of fostering individual development, the government aims to positively impact around 250,000 children nationwide by increasing the BWE Care Grant to $50,000. The free tuition and fees initiative continues, benefiting 11,000 current and future students. The Cash Grant Program has been funded at an impressive $60 billion, benefiting adult Guyanese.

Furthermore, employees earning overtime will see the first $50,000 of their pay exempt from taxation, a benefit that also extends to those with second jobs. To enhance disposable income further, the government has raised the tax threshold from $100,000 to $130,000, allowing households to retain more of their earnings.

Regarding healthcare access for Guyanese, the budget allocates a substantial $143 billion to improve the public healthcare system. This investment will lead to the construction of more hospitals, improved access to pharmaceutical drugs, and enhanced training for doctors, nurses, and other healthcare workers, ultimately aiming to elevate the standard of healthcare available to all Guyanese.

Overall, the 2025 budget reflects the diverse voices of all Guyanese and is designed to provide relief while ensuring that the projected 10% economic growth is not hindered by economic pressures on households. It is a pragmatic budget aimed at benefiting citizens nationwide, regardless of race, gender, religion, or political affiliation. This budget represents a significant step toward a more equitable and prosperous Guyana by addressing immediate needs and laying the groundwork for future prosperity.

Respectfully,

Dr. Tilokie Arnold Depoo

Economist

(Guyanese Voices in the 2025 Budget)

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• 2025 budget, Finance Minister Dr. Ashni Singh, Guyanese households, Guyanese populace

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