– in terms of its contribution to the country’s GDP, as well as making homeownership, more disposal income a reality for the average Guyanese

WITH a housing programme based on a profound understanding of the needs of the Guyanese people, measures contained in the 2020 National Budget increases access and availability to financing, and puts homeownership within the reach of every citizen, Minister of Housing and Water Colin Croal told the National Assembly on Friday.
Making his contribution to the House as the 2020 Budget Debates entered Day Five, Croal pointed to the mortgage interest relief for low and middle-income homeowners, as well as the increase in the limit for low-income loans, and the reversal of Value Added Tax (VAT) on building materials as measures that citizens will greatly benefit from.

“These are measures to give increased access and availability to financing for homeownership within the reach of every citizen; it is part of the government’s continued drive to increase the disposable income of every household, which will increase cash-in-hand, and improve living conditions,” Croal pointed out.
The suite of measures as outlined by the Minister includes: Improving transportation and water networks, affordability and access to finance, and mortgage relief among others, all of which will reinvigorate the housing sector.

“These measures will increase the contribution of the housing sector to the Gross Domestic Product GDP), jobs, and ease the burden of electricity and water that complements dwelling in new and existing homes. More money in people’s hand, and command of more disposable income through adjustment measures for all Guyanese are sure to be directed to their own priorities; one we have seen over the years and most recently to be housing,” Croal said.

Aside from deeming the budget one which will aid the sector’s contribution to the country’s GDP, Croal also emphasised that the national estimates cater to the ordinary Man, who has weathered the storm and is deserving of a bright future.

“I rise to give support and sustenance to the 2020 Budget presented by Bishop Juan Edghill, Minister of Public Works,” he emphatically stated in his opening remarks.
“The 2020 Budget has been crafted to ensure that every stratum and every sector in our country benefits. This budget provides an economic stimulus for the individual and his community,” he added.

Minister Croal further assured citizens that the budget ensures that measures implemented by his Ministry will rebound positively on the employment rate and by extension see an increase in income as well as spending.

In the 2020 Budget, the low-income loan ceiling has moved from $8M to $10M, which will allow for a larger number of persons to qualify for loans of up to $10 million giving them the opportunity to improve on the quality of houses built.

An increase in the ceiling for which tax-deductible Mortgage Interest Relief (MIR) has also been offered in this year’s budget. While MIR previously offered refunds on interest paid on mortgages of up to $15M, it will now be offered on mortgages of up to $30M.

What this means for the ordinary man is that they will get back a portion of the money paid on their monthly mortgage that went to the interest. Introduced in 2013 under the Guyana Revenue Authority (GRA), the relief takes the form of tax refund that the GRA credits to the beneficiary, after they would have filed their annual income tax.
Speaking to the Water Sector, the Minister pointed to the former government’s poor administration and mismanagement of the sector.

He said that his government will remove the Value Added Taxes (VAT) on the commodity, thus allowing more than 170,000 residents to benefit immensely from the service

“Leakages in the system will also be a thing of the past,” assured the Minister.

Additionally, pensioners will see the return of subsidy on their water bill. A total of 25,620 pensioners across the country will benefit from free metered water to the value of $227 M. He pointed out that giving Guyana’s expected growth through the oil and gas sector, sanitation and water will play an important role in driving the economy.”