Dear Editor,
RECENTLY, President Irfaan Ali’s government made the important decision to lift tolls on selected bridge crossings. While public discourse has largely focused on the potential revenue loss from eliminating toll collections, it’s essential to highlight the positive impacts this decision will have on Guyanese households and small businesses.

Removing tolls directly reduces costs for families and lowers operational expenses for small businesses, such as minibuses. This is particularly significant in the context of rising inflation, as it alleviates the financial burden on consumers.

By eliminating tolls, the government is effectively putting more income back into the hands of Guyanese families, thereby increasing disposable income, especially for lower and middle-income households, who are often most affected by economic challenges. With additional funds from toll removal, families can choose to either spend more or save, offering a critical economic boost.

Traditionally, tolls have funded infrastructural projects, but the government has identified alternative funding sources, such as the Natural Resources Fund, to sustain these initiatives. By diversifying funding, the government can continue essential infrastructural investments without relying solely on toll revenues.

To illustrate the economic implications of lifting tolls, consider the Berbice River Bridge, where the toll is approximately $2,000 GY (around $10 USD) for cars and between $2,000 GY to $3,000 GY (about $10 to $15 USD) for larger vehicles.
Removing this toll could result in significant savings per month for households. These savings can reduce transportation costs significantly, encouraging further investments by small businesses in various sectors.

Moreover, abolishing tolls can contribute to addressing the ongoing issue of inflation. The International Monetary Fund has recently projected that inflation in Guyana could reach around four percent by the end of 2025.

By lowering transportation costs, the government can help stabilise prices across sectors, particularly those reliant on bridge crossings for the movement of goods and services. Reduced tolls can lead to decreased operational costs for businesses, which may in turn result in lower prices for consumers.

This policy decision underscores the government’s commitment to enhancing the quality of life for its citizens by making daily commutes more affordable and promoting increased economic activities and mobility. Additionally, it reflects a broader commitment to inclusive economic policies that prioritise the well-being of the population over mere revenue generation.
In the long term, by investing in sustainable infrastructural improvements and redirecting funding from tolls to more stable revenue sources—such as tourism, agriculture, or enhanced public transport systems—the government can more effectively tackle immediate and future economic challenges.

While the fiscal implications of lifting tolls are significant, the potential benefits to Guyanese households and the overall impact on inflation should not be underestimated. This policy represents a crucial step towards fostering a more equitable and resilient economic environment in Guyana.
Sincerely,

Dr. Tilokie Arnold Depoo
Economist