–country’s largest fiscal package fully financed with no new taxes
–massive funds revealed for continued economic, infrastructural development
–slew of initiatives outlined to provide disposable income, to support vulnerable groups

OUTLINING a clear strategy for building national prosperity and creating opportunities, Guyana’s trillion-dollar+ 2024 budget has been described as a holistic overview of the country’s development trajectory.

In a live broadcast following the presentation of the country’s largest fiscal package of $1.146 trillion to the National Assembly on Monday, President Dr Irfaan Ali said the governing People’s Progressive Party/Civic (PPP/C) will continue with its transformation agenda, as this year’s budget outlines several initiatives to provide disposable income to citizens.

He said: “All of these measures are aimed at increasing disposable income, putting more money in the pockets of people, bolstering income for vulnerable groups, and of course, improving the system of services, governance, and the provision of services for our country.”

The President said that approximately $100 billion will be put back into the pockets of people and into the economy.

“This will stimulate spending, bolster income, and improve living conditions, addressing issues of cost of living,” he added.

Further, Dr Ali that the government will continue to keep the taxes on fuel at zero.

“40 billion dollars of taxes that should have been collected will now be placed back into the pockets of people and into the economy. This measure will save our people, our country, the ordinary man on the streets, and the private sector $40 billion,” the Head of State said.

Since the government assumed office in 2020, measures have been implemented to reduce the taxes on fuel to zero.

This measure saved consumers $75 billion, the President said, adding that it is the first measure containing the cost of fuel, an important issue many countries have.

In 2023, the government employed about 15,000 persons through its part-time job programme and this year, $10 billion has been allocated for this.

“We will be expanding household and community disposable income by $10 billion. What this means is that $10 billion that was not [there] the year before is now available in communities across the country to be spent in the markets, in the local shop, and a person who has a low-income house, who now goes on this programme and get $40,000 every month, can repay the low-income loan and still have $12,000 in their pocket every month. That is the impact of this policy,” Dr Ali said.

Meanwhile, $7 billion has been set aside to target specific groups in cost-of-living adjustment measures.

“Whilst we have been able to contain our inflation because of the measures we have implemented in 2023, global and regional inflation is creating havoc and we will be importing a lot of that inflation into our country… So, $7 billion is set aside to directly address and cushion the impact of costs of living as we analyse what is taking place globally,” the Head of State said,
Meanwhile, to support the further growth of the sports sector, all VAT and duties on sports equipment will be removed.

Aside from this, all vat and duty on essential cellphone accessories such as chargers, charging cables, headphones along with every component for phone repairs will be removed as well.
Additionally, efforts will continue to support vulnerable groups.

“Old age pension is an important issue. Since we came into office, we have moved old age pension from $20,500 in 2020 to $33,000 as of last year. In this year’s budget commencing from January 1, 2024, we are now further increasing old age pension to $36,000 per month.

“This reflects a 75% increase in old age pension from the day we came in office, to now, 75% increase in old age pension from the day we came in office to now. What this will do is that it will put $2.7 billion of disposable income in the hands of our [pensioners],” Dr Ali said.

He added: “This will put $2.7 billion of disposable income in the hands of our pensioners. 76,000 pensioners will now have $2.7 billion of disposable income in their hand.”
Meanwhile, public assistance has been expanded to $1.2 billion of disposable income to persons living with disabilities.

The budget also outlines new initiatives which include: The provision of health vouchers for pensioners and children, improved firefighting facilities at Neighbourhood Democratic Councils (NDCs) and measures with the elimination of all loans, all outstanding student loans owed by students to the University of Guyana.

Measures have also been outlined to facilitate greater access to universal medical care and coverage, with a reduction in the cost of life and medical insurance.
Further, the 2023 budget will now take the income-tax threshold, which was increased from $65,000 to $85,000 to $100,000 monthly.

“Together we are building a stronger, more prosperous, unified country for all our people. This is the mission,” the Head of State said.

He said that the PPP/C government in its fifth presentation of a fiscal package for the country will continue “undistracted” from its plans to transform the country.

“This is the Guyana we are building. One in which basic needs are met for all. One where opportunities abound for wealth creation and one where we are fully integrated into the global economic system,” Dr. Singh related.

He added: “This is budget 2024, a budget that will improve the lives of each and every single Guyanese citizen. This is Budget 2024, a budget that addresses today’s priorities and that also sets the stage for tomorrow.”