City faces $1.28B budget deficit

Apr 22, 2026 News

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…receivables pegged at $7.69B, accounts payable at $6.76B

(Kaieteur News) – The Mayor and City Council of Georgetown on Tuesday unveiled its 2026 budget with the financial projections revealing a significant deficit of approximately $1.28 billion, highlighting ongoing fiscal challenges and the urgent need for revenue optimisation and expenditure control.

According to the projected estimates, total revenue is expected to reach $4.41 billion, while expenditure is forecasted at $5.69 billion. However, the city’s broader financial position includes accounts receivable of $7.69 billion and accounts payable of $6.76 billion. To address the deficit, the Council plans to intensify revenue collection efforts, particularly targeting delinquent ratepayers. Strengthening compliance, improving billing systems, and diversifying revenue streams are expected to be central to the recovery strategy. Additionally, there may be a need to reassess spending priorities, improve efficiency across departments, and explore cost-reduction measures without compromising essential public services.

In presenting the budget, Chairman of the city’s Finance Committee, Lelon Saul noted that several departments are projected to operate at substantial deficits. The City Engineer’s Department shows one of the largest shortfalls, with expenditure far exceeding revenue. Similarly, Solid Waste Management, Public Health, and Human Resources are all expected to require heavy financial support. The City Constabulary and Town Clerk’s Office also reflect considerable funding gaps, indicating that essential public services continue to place pressure on the city’s financial resources.

Despite the overall deficit, certain departments contribute significantly to revenue generation. The City Treasurer’s Department stands out with a strong surplus, generating over $3 billion in revenue, far exceeding its expenditure. The Markets Department also records a positive balance, albeit on a smaller scale.

Meanwhile, Saul warned that the capital remains under severe financial and administrative pressure. Delivering what he suggested may be his final budget presentation, Saul addressed councillors and citizens against the backdrop of Guyana’s approaching 60th Independence Anniversary. He urged political leaders to move away from divisive practices and embrace governance rooted in equity, meritocracy, and respect for democratic rights.

The 2026 budget themed, “Fortifying Local Foundations: Efficiency, Advocacy, and Controlled Delivery Amid Constraints,” reflected what the Council described as limited capacity to launch new initiatives. Instead, Saul said the focus will be on maintaining core services and preventing further deterioration of infrastructure.

According to him, the Council aims to distribute resources prudently to improve quality of life in Georgetown through strategic investments and operational efficiency. Key priorities include economic development, infrastructure upgrades, public safety, environmental sustainability, education support, and community well-being.

Among its main objectives for 2026 are maintaining approximately 645 miles of drainage networks, reducing mosquito breeding in streets and alleyways, continuing waste collection services to over 34,000 properties, and strengthening public health oversight, including operations at the city abattoir. Additional goals include improving early childhood outreach, supporting maternal health programmes, and increasing citizen participation in municipal initiatives.

Tax policies

On the revenue side, the Council plans to review tax policies, pursue grants, expand public-private partnerships, and adjust service fees where necessary. It also intends to explore new revenue streams in areas such as open spaces, street vending, and advertising.

However, the presentation underscored significant financial challenges. In 2025, the Council projected revenues of $3.8 billion but collected only $1.9 billion. General rates, the city’s primary income source yielded $1.1 billion against a target of $2.6 billion, Saul said in his presentation.

Saul attributed the shortfall largely to an outdated property valuation system. The current framework he said is based on assessments last conducted in 1997, limiting the Council’s ability to generate revenue reflective of present-day economic conditions. He noted that many property owners face accumulated debts that exceed their property values, contributing to widespread non-payment.

Amnesty

Saul mentioned that the Council had proposed a rates amnesty to central government to encourage compliance and provide relief to affected citizens, but this request was not approved. As a result, he said the municipality indicated it will proceed with legal action against defaulting ratepayers.  Saul cited what he described as ongoing central government intervention in city functions without consultation, noting that projects such as road repairs and drainage works are often executed independently of the M&CC. Additionally, he said the absence of a functioning Local Government Commission is a major constraint. Without the commission, he said the Council faces difficulties in staffing, disciplinary processes, and administrative oversight.

The finance chairman reported increased waste generation in recent years without a corresponding expansion in collection capacity. This he said has resulted in reduced collection frequency in some areas and visible accumulation of garbage across the city. He pointed to behavioural challenges, including indiscriminate dumping and non-compliance by businesses, as well as the lack of a national waste management strategy. Saul noted that overlapping responsibilities among agencies and the absence of recycling systems further complicate efforts to address the issue.

Looking ahead, the 2026 budget places emphasis on strengthening key departments, including the City Engineer’s office, the City Constabulary, Solid Waste Management, and the Public Health Department. Saul said efforts will also be made to improve financial reporting through upgrades in the Treasury Department, including the implementation of new accounting systems and recruitment of qualified staff. Saul acknowledged that uncertainty regarding central government plans continues to affect budget preparation, noting that the lack of information on potential national interventions in areas such as road maintenance and drainage creates challenges in planning and resource allocation.

Factors influencing the 2026 budget include efforts to monetise municipal assets, pursue delinquent taxpayers, including government agencies, update valuation lists, and enhance collaboration with central authorities.

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• 2026 budget, Mayor and City Council, public health, Solid Waste Management

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