PSC commends Government for ambitious, inclusive 2025 National Budget

THE Private Sector Commission (PSC) of Guyana has praised the Government of Guyana for presenting a visionary and impactful 2025 National Budget under the theme “A Secure, Prosperous, and Sustainable Guyana.” The policies announced by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, underscore a strong commitment to fostering inclusive growth, reducing inequality, and creating a supportive environment for businesses.

The budget, with an unprecedented total expenditure of $1.382 trillion, reflects the government’s resolve to ensure the equitable distribution of benefits from Guyana’s significant economic growth. The economy achieved remarkable expansion in 2024, recording a 43.6 per cent GDP increase and robust growth in non-oil sectors. The PSC expressed optimism about the measures aimed at sustaining this economic momentum.

The PSC commended fiscal reforms that prioritise improving the lives of Guyanese citizens. Key highlights include:
Increased Personal Income Tax Threshold: A rise from $100,000 to $130,000 monthly, alongside a reduction in the first tax band from 28 per cent to 25 per cent, will increase disposable incomes for families and boost domestic spending.

Support for Workers: The introduction of non-taxable thresholds for overtime earnings and secondary employment income demonstrates sensitivity to the realities faced by the workforce.
The budget’s initiatives to support the private sector were also lauded. These include: VAT Removal: Exemptions on critical inputs such as agricultural machinery and backup generators will lower operational costs and promote diversification in non-oil sectors like agriculture and manufacturing.
Support for Poultry Farmers: Accelerated depreciation provisions for investments in poultry farming highlight the government’s focus on food security and agro-processing.

The PSC noted the government’s commitment to enhancing the quality of life for vulnerable groups through: Social Support: Increases in old-age pensions, public assistance, and the Because We Care grant. Financial Relief: The removal of bridge tolls to ease financial burdens and promote mobility.

Investments in resilient infrastructure, coupled with measures to maintain macroeconomic stability and address inflation, were recognized as crucial steps toward building a sustainable economy. Efforts to contain freight costs further demonstrate the government’s pragmatic approach to shielding businesses and consumers from external shocks.
The PSC affirmed its commitment to working collaboratively with policymakers to implement these initiatives successfully. “Budget 2025 will enable continuous private sector growth, empowering businesses to drive innovation, create jobs, and build a strong, sustainable economy that benefits all stakeholders,” the Commission stated.

Looking ahead, the PSC stated that it remains focused on advocating for policies that enhance Guyana’s economic competitiveness and improve social well-being, ensuring a brighter future for all citizens.

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