WHILE much of the world struggles with rising household costs, Guyana is taking a different economic path.

 

This path focuses on policies that prioritise the well-being of everyday families instead of strict austerity measures.

 

President, Dr Irfaan Ali recently said the government’s cost-of-living agenda highlights an important truth often missed in narrow economic discussions.

 

Macroeconomic outcomes are not just the result of global forces. They are shaped by the conscious decisions made by those in power.

 

The amount of financial relief provided to Guyanese households is impressive and deserves more public recognition.

 

The government has removed over 200 taxes and heavy measures, many put in place by the previous APNU+AFC administration between 2015 and 2020.

 

This has returned more than $40 billion each year to workers, farmers, entrepreneurs, and consumers.

 

This is real money that would have been taken from citizens if the government had continued the previous administration’s heavy fiscal policies.

 

The removal of fuel excise taxes alone saves consumers $90 billion a year. Additionally, the elimination of bridge tolls, a five percent reduction in water charges, and the removal of Value-Added Tax on electricity and water provide benefits that add up for households.

 

The agricultural sector shows how focused cost-of-living actions can work. In Region Five alone, farmers now save $1.6 billion on drainage and irrigation charges and land-rental fees.

 

This relief contrasts sharply with the increases in 2017, which devastated smallholder incomes with annual charges ranging from $3,500 to $15,000.

 

When the government removes such burdens while also providing fertiliser subsidies and improving critical infrastructure, it changes the economic landscape for productive sectors and benefits communities.

 

Besides tax cuts, the government has sustained and expanded direct support during ongoing fiscal challenges.

 

The Because We Care cash grant for schoolchildren is now $50,000 per child. Other initiatives include school-feeding programmes, transportation and uniform grants, reduced loan rates, and cash grants for newborns.

 

These collectively create a social safety net that shows a long-term commitment, not just during election cycles.

 

The 2025 budget increases the income tax threshold to $130,000 monthly, doubling the 2020 amount. This boosts household purchasing power, bringing in an additional $8.5 billion in disposable income, while removing 22,000 workers from the tax base completely.

 

Yet, President Ali’s most nuanced point deserves ongoing discussion: rising prices connect to changes in consumption patterns as the economy grows.

 

As living standards rise and disposable incomes increase, spending shifts towards higher-value imports and services—such as diverse diets, vehicle ownership, and dining out.

 

These are not policy failures; they reflect the aspirations that come with a developing economy moving towards greater prosperity.

 

The president points out that when households shift to imported goods, they also import the inflation linked to global supply chains.

 

This presents a challenge that local monetary policy can influence only to a limited degree.

 

Recognising these structural realities, rather than simplifying them, sets apart effective economic governance.

 

Guyana’s inflation rate, around 2.9 per cent at the end of 2024, is expected to rise to about four percent in 2025, but it remains lower than the averages in the Caribbean and around the world.

 

This performance is not due to luck. It results from ongoing policy choices that prioritise relief and structural stability over fiscal pressure.

 

A government focused on real development doesn’t just respond to global economic challenges. It actively protects its citizens through distribution, smart investments and the safeguarding of hard-earned benefits.

 

Guyana’s approach to addressing cost-of-living issues, supported by billions in tax cuts, increased direct support, and targeted sector assistance, reflects this commitment.

 

This is governance that truly serves the purpose of creating prosperity.