–        Fully financed with no new taxes
–        Clears way for continuation of govt’s transformative projects
–        Income Tax Amendment bill passed

CLEARING the way for the continuation of transformative interventions, Guyana’s largest budget of $1.382 trillion was on Wednesday evening passed in the National Assembly.
This year’s budget, which it was noted was fully financed with no new taxes, was approved during the 100th sitting of the Twelfth Parliament, following the completion of the budget debate and consideration of estimates and expenditures over the past few weeks.

To be included in this year’s budget is the sum of US$2.463 billion or GYD$512.4 billion to be withdrawn from the Natural Resources Fund (NRF) for the financial year 2025 in accordance with the NRF Act of 2021.
When the budget was presented to the National Assembly in January, Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh, indicated that the formulation of the budget with no new taxes marks a significant step towards fulfilling the People’s Progressive Party/Civic (PPP/C) government’s commitment to sustainable economic development.

The historic budget is set to serve a dual purpose to complete and exceed the undertakings promised by the PPP/C administration in its 2020 manifesto and further lay the foundation for the PPP/C’s next term in office.

INCOME TAX AMENDMENT
As part of the announced beneficial measures for citizens across Guyana, the Income Tax (Amendment) Bill 2025 was also passed by the national assembly.
This clears the way for several tax measures announced in the budget, which includes the moving of the income tax threshold from $100,000 per month to some $130,000. This, in turn, means individuals earning $130,000 or less will no longer be subject to income tax, while those earning above this amount will only pay tax on income exceeding that amount.

This move, Dr Singh, told the house doubles the threshold from $65,000 to $130,000 during the PPP/C’s current term in office.
Added to this, the bill also acts on measures set to reduce the income tax rates from 28 per cent and 40 per cent. The rate of 28 per cent is being reduced to 25 per cent while the 40 per cent will be reduced to 35 per cent.
“That will redound to the benefit of every single taxpayer in Guyana,” Dr Singh said on Wednesday.

Further to this, the move for persons paying income taxes to be able to claim a deduction from their taxable income of up to $10,000 per month per child was also approved.
“That benefit, I might add, is available to one parent, one claimant might make the claim for each child that, of course, is a historic pro-family and pro-children innovation in our tax system,” he added.
Another measure to be enacted with the passage of this act is that income earned from a second job, up to a total of $50,000 per month, will be allowed as tax-free income or will be deductible from taxable income.
Further income earned by way of overtime up to a total of $50,000 per month will also be allowed as tax-free.

“And so, this introduces, in addition to the increases in the income tax threshold, this bill, the current bill introduces those three important and historic innovations to our tax system,” he said.
It was subsequently passed by the national assembly without changes.

TRANSFORMATIVE PROJECTS 
This year, the continuation of several transformational projects is expected including the advancement of Guyana’s energy sector for which some $88 billion has been set aside.
This includes the continued expansion of renewable energy and upgrading infrastructure.

One significant project as part of the expansion of renewable energy is the historic 300 megawatts Gas to Energy project for which some $51.1 billion was allocated in the budget. The allocation includes sums for the natural gas liquid plant, transmission lines and substations and transformers along with the construction of a building for the Guyana National Control Centre.

This is expected to slash electricity costs by 50 per cent, and it was revealed that the simple cycle of the project is expected to come on stream in November this year.
In relation to infrastructure, some $252.8 billion has been allocated for the pursuance of a number of innovative projects including the Palmyra to Moleson Creek Highway for which just around $15.5 billion was allocated.

Some $20.2 billion has been set aside for the new Demerara River Bridge, expected to be completed this year, $17.5 billion for continued work on the Railway Embankment project and $9 billion for the Linden Soesdyke Highway project.
Additionally, $2.1 billion has been approved to advance works on the Wismar bridge in Linden. The Linden to Mabura Hill road along with 45 concrete bridges will be undertaken with a $12.9 billion sum.
Meanwhile, the housing sector was allocated some $112.6 billion to continue the development of new and existing housing areas.

This caters for the allocation of an additional 25,000 house lots, which will result in surpassing the PPP/C’s manifesto promise of delivering 50,000 house lots.
Dr Singh, during the presentation of the 2025 budget indicated that the government is committed to developing 85 new and existing housing areas, including Amaila’s Ward, Bell West and Charity.

This plan includes allocating over 40,000 house lots across all income categories, constructing more than 2,000 homes and removing the Value Added Tax (VAT) on locally produced building materials.
In the security sector, some $6.2 billion has been approved for the Safe Country initiative which will leverage advanced technology for crime detection. The allocation will ensure the establishment of 320 new Intelligent Video Surveillance (IVS) sites.

Additionally, $4.7 billion has been set aside to cater for the infrastructural needs of the Guyana Police Force, this includes $1.7 billion designated for the ongoing construction of the Brickdam Police Station and some $1 billion for the completion of several police stations and posts across regions.
Further, approval of the budget clears the way for the increase in the Because We Care cash grant to $50,000 per child, thus benefitting over 205,000 school children.

In the education sector, $36.2 billion has been set aside for the expansion of schools and a further $13.4 billion has been allocated for the University of Guyana to finance its operations and kick-start the tuition-free experience for students.
In the Health sector this year, $143.2 billion has been allocated aiming to significantly expand and enhance public healthcare coverage while advancing efforts to establish a modern, world-class system.
Notably, the budget caters for the completion and commissioning of the Paediatric and Maternity Hospital at Ogle and six regional hospitals at Lima, De Kinderen, Diamond, Enmore, Bath and No. 75 Village.

Added to this, works are set to advance on four regional hospitals at Moruca, West Demerara, New Amsterdam and Kato, and the upgrading of the Lethem Regional Hospital for which a sum of $28.1 billion is budgeted.

Further, some $852 million is budgeted in 2025 for the completion of training complexes in Suddie and New Amsterdam, and the commencement of the construction of two dormitories for the health sciences training complexes.
The passage of the $1.382 trillion budget ushers in a new era of economic growth and prosperity. As Guyana’s largest-ever fiscal package, it represents a 20.6 per cent increase over the previous year and was themed, “A Secure, Prosperous and Sustainable Guyana.”