Budget 2026 and the problems people actually face

Jan 31, 2026 Features / Columnists, Peeping Tom

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(Kaieteur News) – Leader of the Opposition, Azruddin Mohamed, has argued that Budget 2026 fails to address the fundamental problems confronting the Guyanese people. That claim is not difficult to understand or to support.

The government may appear to be living in an alternative reality, but the everyday challenges facing ordinary citizens are plain to see. They are experienced daily, not debated in theory.

The first and most visible problem is traffic. Thousands of Guyanese spend an inordinate amount of time commuting to and from work and school. Long hours are lost daily in congestion. What makes matters worse is the massive increase in vehicles on the nation’s roadways without a corresponding improvement in road networks, traffic management, or public transportation. This problem affects productivity, mental health, and family life, yet Budget 2026 offers little reassurance to the average commuter.

Second, there remain pockets of poverty across the country. Despite rapid economic growth and rising national revenues, many communities continue to struggle with poor housing, unemployment, and limited access to essential services. Growth figures alone do not put food on tables. Development must be felt where people live, and many Guyanese do not feel it yet.

Third, crime continues to plague the society. Even where there has been some reduction, crime still represents a massive transfer of wealth each year from law-abiding citizens to criminals. Businesses suffer losses, households feel unsafe, and fear persists. The resurgence of bicycle gangs, particularly in urban areas, is deeply troubling. A budget that does not clearly outline how public safety will be strengthened is disconnected from lived reality.

Fourth, there is the persistent and unresolved problem of National Insurance Scheme (NIS) records failing to properly reflect contributors’ payments. Workers routinely discover missing contributions when they apply for benefits. This situation is worsened by employers who deduct NIS from wages but fail to remit those funds. Budget 2026 does not convincingly show how this long-standing injustice will be corrected.

Fifth, Guyana faces high labour costs and acute labour shortages, particularly in productive sectors such as agriculture, construction, and manufacturing. These shortages have led to a growing reliance on migrant labour. While migrant workers may be necessary, their large-scale importation increases social costs, places pressure on housing and services, and raises questions about long-term workforce planning. These issues are insufficiently addressed in the budget.

Sixth, there is growing chaos and disorder caused by the unchecked spread of illegal vending. Many people now feel entitled to set up vending operations anywhere—on pavements, roadways, and public spaces. This problem is made worse by weak enforcement and the near absence of zoning. Without order and planning, the country risks becoming increasingly disorganised and unmanageable.

Seventh, inequality across Guyana is widening. The rich are getting richer, while the middle and lower classes struggle to keep pace. Government policies, including measures contained in Budget 2026, appear to favour those who already have capital and influence. An economy that consistently rewards the top while leaving others behind cannot remain socially stable.

Eighth, the high cost of living has become one of the most pressing concerns for households. Prices for food and basic goods continue to rise, stretching incomes thin. For many families, budgeting has become an exercise in survival. Budget 2026 does not adequately explain how it will ease the pressure of spiraling prices. The measures announced such as an increase in the income tax threshold and a cash grant for adults do not fundamentally address the cost-of-living crisis. The existing measures such as the relief on taxes on freight charges have not brought any relief.

Ninth, the cost of housing has become prohibitive. Rents are skyrocketing, making it increasingly difficult for young people and working families to find affordable accommodation. At the same time, the cost of building a home has risen sharply due to high material prices and labour costs. Home ownership is drifting out of reach for many, yet the budget offers limited relief.

It must be acknowledged that a budget is a one-year financial plan. It is not a long-term or even medium-term development strategy. However, during the budget debates, the government has a clear opportunity to demonstrate clearly and irrefutably how the measures in Budget 2026 will help to alleviate these very real problems.

If the government can show how traffic will be reduced, poverty tackled, crime contained, NIS fixed, labour shortages managed, disorder addressed, inequality narrowed, the cost of living eased, and housing made affordable, it would go a long way toward pulling the rug from under its critics’ feet. Until then, the criticism that Budget 2026 is out of touch with the everyday reality of Guyanese life will continue to ring true.

(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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• Azruddin Mohamed, Budget 2026, fundamental problems, Peeping Tom, traffic

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