–to deliver ‘accelerated’, people-centred development, Dr Singh says
–calls out APNU+AFC for stalling progress, as Fiscal Enactments Bill passed

AFTER a thorough five-hour budget presentation, two weeks of policy debates and scrutiny from the political opposition, the National Assembly, on Friday night, approved the historic $1.146 trillion budget to deliver accelerated improvement to the lives of Guyanese and development.

Following the wrap-up of the consideration of the budget estimates, the Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, reported to the National Assembly that the estimates were thoroughly considered in the Committee of Supply.

Dr. Singh commended his colleagues as well as members of the Opposition for meticulously examining the estimates and posing questions to government ministers on various line items under each sector, and by doing so, providing an opportunity for the public to get a better understanding of what is in the budget.

Budget 2024, the country’s largest to date, is the fifth budget to have been presented by the People’s Progressive Party/Civic (PPP/C) administration, since being elected to office in August 2020.

Minister Singh also tabled an amendment to Guyana’s tax laws allowing for many of the measures provided for in the Appropriation Bill (2024), commonly referred as Budget 2024, to take effect.

It was presented this year under the theme: “Staying the Course: Building Prosperity for All.”

This year’s budget is the largest ever, and despite being 46 per cent bigger than Budget 2023, it is entirely financed by no new taxes.

It is the third budget that will benefit from financing from the proceeds of Guyana’s new and emerging oil-and-gas sector, following the historic passage of the Natural Resources Fund (NRF) Act, which addressed the most “offensive deficiencies” of the predecessor Act.

Following the passage of the budget, Dr Singh addressed the National Assembly and criticised the APNU+AFC members for exiting the session before the second reading of the Fiscal Enactments Amendment Bill.

“It should come as no surprise that the APNU+AFC, just as we were about to consider this Fiscal Enactments Bill, chose to leave the House in the manner that they did. Because they have a long and well established and well-documented track record of obstructing frustrating and derailing progress,” he said.

The minister explained the bill’s objective to optimise the financing mix, ensuring a balance between immediate withdrawals and long-term savings from the NRF.

He also pointed to the strategic importance of the bill, which aimed at amending the NRF Act of 2021 to facilitate the country’s oil revenues for the development of public infrastructure and social services.

“…The financing that will be mobilised, under the auspices of this bill will deliver accelerated improvement to the lives of the Guyanese. And as their customary fashion, the APNU+AFC will do everything that they possibly can to frustrate the delivery of these benefits to the Guyanese people,” Dr Singh said.

The passage of the 2024 budget and the Fiscal Enactments Bill paves the way for a continuation of zero per cent excise tax on petroleum, costing the government an estimated $40 billion annually to mitigate global fuel price volatility and extended pre-pandemic freight charge adjustments until December 31, 2024, at a cost of over $6 billion to combat increased shipping costs.
Additionally, in 2024, a sum of $450 million has been budgeted for the replenishment of the Small Business Development Fund, and $331 million is budgeted for the Small Business Bureau for initiatives that will contribute to small and micro business development, and the promotion of entrepreneurship.

The government is expanding the part-time job programme with an allocation of over $10 billion to support household incomes and skill development, allocating $7 billion to address the effects of El Niño on food prices, and partnering with commercial banks to lower interest rates on loans up to $5 million to support small and medium-sized enterprises.

An increase in Old Age Pension to $36,000 per month will benefit 76,000 individuals, reflecting a 75 per cent rise since 2020, while Public Assistance increases to $19,000 monthly, impacting over 35,000 persons, alongside eye care vouchers for over 205,000 school children and pensioners, and an $8,000 voucher for cervical cancer testing for women aged 21 to 65.

The budget also includes the removal of VAT and duty on sports equipment and essential cell phone accessories, an increase in the National Insurance Scheme’s minimum pension to $43,075, enhancements to survivor’s and invalidity pensions, and a one-off grant for those nearing Old Age Pension qualification.

Additionally, the “Because We Care” Student Grant will increase to $40,000, benefiting over 205,000 children, with a debt write-off initiative for University of Guyana graduates who demonstrate post-graduation employment or self-employment in Guyana.

Also, there is an increase in the deductible ceiling for life and medical insurance premiums to $50,000 monthly, and an income tax threshold increase to $100,000 monthly from 2024 to boost disposable income for workers.

The comprehensive measures in Budget 2024 essentially aim to inject billions of dollars into the economy, addressing price pressures, supporting vulnerable groups, and stimulating productive sector expansion and job creation, reflecting the government’s dedication to sustainable development and the prosperity of Guyana.