THE Budget 2023 amounts to $781.9 billion, an increase of 41.4 per cent over Budget 2022. It is fully financed without new taxes and is based on the National Development Strategy (NDS), which began three decades ago.

The budget includes measures to combat the cost-of-living issue and has substantial allocations for social services, with a 42 per cent increase from the previous year.

The total cost for cost-of-living measures is estimated to be $89 billion, which represents 11.3 per cent of the budget and 43 per cent of the Natural Resource Fund (NRF) withdrawal used to finance the budget.

The government is pursuing an expansionary fiscal and monetary policy framework to support the economy’s development trajectory. Capital expenditure has increased by over 400 per cent since 2020, while current expenditure has increased by only 51 per cent since the government assumed office in 2020.

The major challenge faced by the government is absorptive capacity, which acts as an anchor to prevent overheating of the economy.

In keeping with its theme – Improving Lives Today, Building Prosperity for Tomorrow – Budget 2023 strikes a balance between addressing the pressing needs of today and the critical investments needed for tomorrow, ensuring that both are attended to.

Government has delivered: $3 billion worth of special salary adjustments for healthcare workers and uniformed servicemen and servicewomen; $3.3 billion in tax relief to those paying income taxes, and removes 12,000 of them immediately from the tax net; $2.1 billion in additional cash grants to parents of school-aged children; and $4.4 billion in additional old age pension payments to senior citizens, just to name a few of the immediate initiatives.

At the same time, Budget 2023 allocates: $136.1 billion for the upgrade of thousands of roads and bridges countrywide; $43.3 billion to advance construction of the gas-to-energy project which will reduce the cost of electricity by half and bring much-needed relief to the entire citizenry, and creating jobs for Guyanese nationals; $84.9 billion for enhanced healthcare delivery; and, $94.4 billion for the education sector to ensure that young people are prepared for the future that beckons to them.

This is a budget for all Guyanese and it is a budget for now and for the future. Budget 2023 delivers on its promise, and on the PPP/C government’s unwavering commitment to improve the lives of every single Guyanese family and individual and to improve the opportunities they enjoy for the future. It is also a responsible budget, cast within the context of a macroeconomic framework that recognises the risks faced both from the global economy, as well as from the realities that confront a new and emerging resource-based economy.

Budget 2023 is also partially financed by revenue from Guyana’s carbon credits sale, since Guyana is the first country to receive a payment of $75 million from Hess Corporation under an agreement that could be worth a minimum of $750 million until 2030.

Two more payments of $37.5 million each will bring the total budgetary allocation to $150 million. The payment recognizes the important role of Guyana’s forests in fighting climate change and the government’s efforts in this area. The Natural Resource Fund will provide an additional $1 billion this year to finance developmental priorities.

This year’s budget balances current needs with investments in the future, with transformational projects planned for agriculture, education, health, and infrastructural sectors. The budget allocates $84.9 billion for the health sector and $94.4 billion for the education sector, including $13.1 billion for a paediatric and maternal hospital and regional hospitals and $12.4 billion for improving education infrastructure.

Energy is a major focus of the budget, including the construction of a natural gas liquids plant and a 300 MW power plant that will reduce emissions by 70 per cent. Other infrastructural projects include upgrades to highways, the East Coast railway embankment and the construction of a bridge across the Hope Canal.

The budget includes measures to increase disposable income; expand the part-time job programme; support the vulnerable, and incentivize home ownership. It reflects the government’s commitment to improving the lives of all Guyanese today, while also creating opportunities for the future.