GOVERNMENT will spare no effort in ensuring that the sugar industry is transformed into a viable and competitive one, assured Finance Minister, Dr. Ashni Singh during the 2012 National Budget presentation, on March 30 in the National Assembly. According to Minister Singh, in addition to the resources that were already injected by Government into the industry, this year’s budget provides for a transfer of $4B from Central Government to the Guyana Sugar Corporation (GuySuCo), to ensure that the sugar industry is financially able to meet its operating and investment requirements.
The production and financial turnaround expected from the support and other initiatives taken by the industry will ultimately benefit 120,000 people, including the industry’s 18,000 employees and its suppliers of goods and services.

GPL
The Guyana Power and Light (GPL) Inc. will also benefit from a transfer of $6B from Government, which will provide direct benefit to 164,000 subscribers and their households.
The Finance Minister noted that electricity tariffs were last adjusted in 2007, when light and heavy fuel oils were procured at US$71 and US$109 per barrel respectively. However, prices have since been increased by 61 and 38 percent respectively — to US$114 and US150 per barrel respectively — and GPL funded the escalated costs without any tariff adjustments.

Renewable energy sources
In keeping with Guyana’s Low-Carbon Development Strategy (LCDS), in this year’s budget, Government signalled its intention to promote greater reliance on renewable energy and more energy-efficient devices.
In this regard, Dr. Singh stated, through legislation, Government aims to remove applicable taxes on non-traditional sources of electricity generation for both household and commercial purposes, among which are solar panels, solar lamps, solar generators, wind turbines and power inverters.

Public Assistance, Old Age Pension
The budget provides for a seven percent increase in public assistance, bringing the monthly payment to $5,900, more than double that of 2006, when it was $2,350.
Old age pension has also been increased by eight percent over the 2011 rate, bringing the amount to $8,100.  In 2006, the monthly old age pension was $3,500.
Dr. Singh noted that the increase in public assistance and old age pensions will account for a further $350M of disposable income to the elderly and the most vulnerable.

Personal Income Tax
The personal income tax threshold was also increased to $50,000 monthly, or $600,000 annually, which guarantees every taxpayer a higher take home pay. The increase has also removed 21,000 persons from the income tax net, and places over $3B in additional disposable income in the hands of beneficiaries.
In 2006, the income tax threshold was set at $300,000 annually, or $25,000 per month.
It has since been adjusted upwards progressively up to last year, when it was set at $480,000 annually or $40,000 monthly.